News
In the wake of its return to public residential mortgage-backed securities (RMBS) issuance after a 12-year absence, ANZ Banking Group (ANZ) says the new shape of the regulatory matrix has finally made capital-relief issuance a cost-effective option. The issuer says it is encouraged by the investor response to its latest deal – including its substantial offshore distribution – and hopes not to be absent from the securitisation market for another extended period.
ANZ Banking Group returned to the public Australian residential mortgage-backed securities market for the first time in 12 years this week, printing A$2 billion (US$1.48 billion) via Kingfisher Trust 2016-1. Meanwhile, ASB Bank completed its latest tier-two deal, printing NZ$400 million (US$279.7 million) of 10-year non-call five-year notes.
On November 25, ANZ Banking Group (ANZ) (AA-/Aa2/AA-) printed A$2 billion (US$1.48 billion) in its first residential mortgage-backed securities (RMBS) transaction since 2004. The class A1 notes were upsized to A$1.84 billion from a launch volume of A$690 million. Final pricing on the A1 tranche came in at 107 basis points over one-month bank bill swap rate (BBSW) - three basis points tighter than guidance of 110 basis points.
On November 25, ASB Bank disclosed to the NZX that it had completed its offer of NZ$400 million (US$279.7 million) tier-two notes. The margin on the retail-format transaction had been set at 280 basis points over bank bills, against indicative 270-285 basis points over bills guidance range, on November 3.
Australian Postal Corporation (Australia Post) (AA- by S&P) printed A$280 million (US$207.3 million) in a new, dual-tranche Australian dollar deal, on November 24. The 10-year tranche was upsized to A$180 million from a launch volume of A$100 million and the A$100 million five-year tranche priced at 100 basis points over three-month bank bill swap rate - tightened from guidance of 105-110 basis points.
On November 24, Greater Bank (BBB+) printed A$30 million (US$22.1 million) - upsized from a launch volume of A$20 million - in a new three-year domestic deal. The transaction priced in line within guidance of 150 basis points over three-month bank bill swap rate (BBSW). According to KangaNews data, Greater Bank was most recently in the Australian domestic market in August this year when it printed A$30 million of three-year notes at 155 basis points over BBSW.
Svenska Handelsbanken (AA-/Aa2/AA-) has disclosed plans to undertake a nondeal roadshow via a series of fixed-income investor meetings in Sydney, Melbourne and Brisbane, a November 21 announcement revealed. The meetings, which will be arranged by UBS, will commence during the week of November 28.
On November 21, ME (BBB+/A3) launched a minimum A$50 million (US$36.6 million) increase to its July 2019 senior-unsecured floating-rate line. The tap transaction is being marketed with a spread of 140 basis points over three-month bank bill swap rate (BBSW). According to KangaNews data, the line was introduced in July this year for volume of A$225 million and pricing of 145 basis points over BBSW.
In the third week of November, Westpac Banking Corporation (Westpac) issued the first-ever callable Basel III-compliant tier-two transaction into the US market by an Australian bank. Westpac printed US$1.5 billion of 15-year non-call 10-year notes. Meanwhile, Central American Bank for Economic Integration completed its debut Kangaroo deal.
On November 18, Western Australian Treasury Corporation (WATC) (AA+/Aa2) printed A$525 million (US$388 million) in a new syndicated benchmark deal. KangaNews data show that WATC's last syndication was in June this year when it printed A$700 million of 11-year notes at 61 basis points over Australian Commonwealth government bond.