News
Rentenbank priced a new 10.5-year Kangaroo bond on September 14, for volume of A$100 million (US$74.6 million) and indicative pricing of 55 basis points over semi-quarterly swap.
Firstmac has disclosed plans to "engage with investors" in the week beginning September 19, ahead of a potential domestic residential mortgage-backed securities (RMBS) transaction. The September 14 announcement follows an RMBS launch from AMP Bank and meetings between Liberty Financial and investors around a potential SME-loan securitisation.
Westpac Banking Corporation (Westpac) (AA-/Aa2/AA-) launched and priced a new self-led senior-unsecured domestic deal on September 12, in line with a marketing spread of 43 basis points over bank bill swap rate (BBSW). Westpac is the last of the major-bank issuers to seek one-year funding from the Australian public market since July.
The comingling of retail and institutional investment pools that has helped drive a resurgence in New Zealand credit deal flow continues to support supply, say lead managers and issuers from the two most recent corporate deals. Issuance is also being backed by redemption flows and corporate borrowers taking the opportunity to diversity their funding.
As corporate deal flow resumes following the recent reporting period, two Australian corporate issuers highlight the Australian domestic market's capacity for a range of tenors. Asian support for recent transactions is also notable, with one in particular garnering a higher-than-usual Asian bid.
Auckland Council (AA/Aa2) launched and priced a new 11-year Kangaroo bond on September 12. The transaction printed in line with minimum volume of A$50 million (US$37.6 million). Indicative pricing on the forthcoming transaction was 80 basis points over semi-quarterly swap.
Deal activity was largely limited to the Australian market during the first full week of September. National Australia Bank became the third major to issue a public one-year maturity deal since July and it also netted A$800 million (US$611.3 million) in a dual-tranche tier-two domestic return. Elsewhere, Qantas Aiways and Swedbank revealed plans to meet local investors.
On September 9, Westpac Banking Corporation (Westpac) (AA-/Aa2/AA-) launched and priced a self-led increase to its June 2026 domestic line. The deal was launched at A$50 million (US$38.2 million) and eventually priced A$75 million.
National Australia Bank (AA-/Aa2/AA-, with an expected issue rating of BB+/A3/A+) priced a new domestic tier-two deal on September 9. The bank was seeking a minimum of A$400 million (US$307.2 million) from the transaction at a target margin of 240-250 basis points over fixed- or floating-rate swap benchmark.
On September 9, Swedbank (A+/Aa3/A+) revealed plans to meet with investors in Sydney and Melbourne. The series of fixed-income investor meetings will commence during the week of September 12.
On September 8, Motor Trade Finance New Zealand (MTF) priced its first asset-backed securities (ABS) transaction since July 2014. MTF Torana Trust 2016 has a seven-tranche structure and printed final aggregate volume of NZ$220 million (US$194 million), and upsize from indicative volume of NZ$198 million at launch two days previously.