News
Teachers Mutual Bank (Teachers Mutual) (BBB+/A3) priced A$100 million (US$76.9 million) of three-year notes in its latest domestic deal on October 20. The transaction priced at the tighter end of intiial guidance of 140-145 basis points over three-month bank bill swap rate (BBSW). According to KangaNews data, Teachers Mutual was most recently in the Australian market in November 2014, when it printed A$70 million of three-year notes at 105 basis points over BBSW.
On October 20, Citigroup (BBB+/Baa1/A) printed an upsized volume of A$550 million (US$422.3 million) from a minimum volume of A$150 million, in a seven-year SEC-registered global senior-unsecured transaction. Initial price guidance on the deal wasin the area of 175 basis points over semi-quarterly swap.
Liberty Financial (Liberty) has printed A$500 million (US$384.5 million) in its latest residential mortgage-backed securities (RMBS) transaction – its second prime and nonconforming deal of the year. The transaction priced in line with initial price guidance disclosed on October 17.
Province of Alberta (Alberta) (AA/Aa1) printed A$75 million (US$57.5 million) in an increase to its December 2026 Kangaroo bond on October 19. Initial price guidance on the tap was 81 basis points over semi-quarterly swap and 83 basis points over Australian Commonwealth government bond (ACGB).
On October 18, National Australia Bank (NAB) (AA-/Aa2/AA-) printed an upsized volume of A$1.75 billion (US$1.3 billion) from a minimum of A$750 million, in a new five-year dual-tranche transaction. Final pricing came in flat against an indicative margin of 105 basis points over three-month bank bill swap rate (BBSW).
Northern Territory Treasury Corporation (NTTC) (Aa2) printed A$300 million (US$230 million) in a new October 2024-maturity domestic deal. According to KangaNews data, NTTC's most recent syndicated issue was in April 2014 when it printed A$300 million of 12-year notes at 80 basis points over EFP.
Favourable execution conditions attracted ME back to the domestic residential mortgage-backed securities (RMBS) market, the issuer says. ME printed a total of A$1.5 billion (US$1.2 billion) from a A$1.9 billion final book across six-tranches in its first RMBS transaction of the year, according to arranger data. The A$1.4 billion class A1 notes priced at 118 basis points over one-month bank bill swap rate (BBSW).
On October 14, ME printed A$1.5 billion (US$1.1 billion) in its first residential mortgage-backed securities (RMBS) transaction of 2016. Preliminary ratings and indicative price guidance on SMHL Series Securitisation Fund 2016-1 were revealed on October 11.
In the most noteworthy activity of the week the Australian Office of Financial Management printed A$7.6 billion (US$5.76 billion) in a curve-extending new 30-year bond. Issuer and intermediaries spoke to KangaNews, citing new investor interest as one significant outcome. Meanwhile, ME printed A$1.5 billion in one of its biggest residential mortgage-backed transactions.
The Australian Office of Financial Management (AOFM) has broken volume and duration records with its latest curve-extending syndication, highlighting significant global demand for longer-dated Australian dollar product. Issuer and intermediaries note the entrance of new investors as a positive take out from the transaction and say they are optimistic around the potential for further market development in the wake of the deal.
