News
On September 27, AAI (A+/A1/A+), Suncorp Group's insurance subsidiary, printed A$330 million (US$252.9 million) in a new, minimum subordinated tier-two transaction. The 26-year non-call six-year notes are rated BBB+/A3/A. Initial price guidance was in the area of 320 to 330 basis points over three-month bank bill swap rate (BBSW).
International Finance Corporation (IFC) (AAA/Aaa) priced a minimum A$50 million (US$38.1 million) increase to its July 2026 Kangaroo bond on September 26. Initial price guidance on the tap was 49 basis points over semi-quarterly swap and 49.25 basis points over Australian Commonwealth government bond (ACGB).
On September 23, KommuneKredit (AAA/Aaa) priced an increase to its November 2026 Kangaroo bond. The tap priced in line with initial price guidance of 73 basis points over semi-quarterly swap, according to sole lead manager Nomura.
Bank of Tokyo-Mitsubishi UFJ Sydney Branch printed a total of A$700 million (US$534.3 million) in its return to the Australian domestic market during the third week of September. Meanwhile, APA Group and ME scheduled roadshows to meet investors ahead of potential domestic and residential mortgage-backed securities transactions respectively.
Toyota Finance Australia (TFA) (AA-/Aa3) revealed on September 21 that it has launched and priced a A$150 million (US$113.4 million) one-year senior-unsecured floating-rate note. The transaction was upsized from A$100 million minimum at launch and priced in line with indicative price guidance of 40 basis points area over three-month bank bill swap rate (BBSW).
The three-year domestic floating-rate note (FRN) mandated by Bank of Tokyo-Mitsubishi UFJ Sydney Branch (BoTM Sydney) (A+/A1) on September 19 priced on September 20. The deal was for total volume of A$700 million (US$528.1 million) across fixed- and floating-rate tranches.
Liberty Financial (Liberty) priced its SME transaction, Liberty 2016-1 SME Trust, on September 20. The issue was for volume of A$400 million (US$300.4 million) and it was revealed prior to pricing that there was no intention of upsizing the deal.
Credit Union Australia (CUA) (BBB+/A3) launched and priced an increase to its December 2017 maturity floating-rate note (FRN) on September 19, with an indicative margin of 100 basis points over bank bills.
AMP Bank returned to the residential mortgage-backed securities market for the first time since 2014 during the second week of September, pricing A$750 million (US$563.8 million) in Progress 2016-1 Trust. Firstmac was added to the securitisation pipeline, disclosing plans to engage with investors.
On September 16, Nederlandse Waterschapsbank (NWB) (AAA/Aaa) launched and priced an increase to its September 2026 Kangaroo bond. According to KangaNews data, the line was introduced in February for volume of A$50 million (US$37.6 million) and pricing of 77 basis points over Australian Commonwealth government bond (ACGB). It was most recently tapped by A$55 million on August 31, at 87.25 basis points over ACGB.