News
On July 22, Columbus Capital priced its first residential mortgage-backed (RMBS) transaction since 2014. Triton Trust No.7 Bond Series 2016-1 has an eight-tranche structure and an aggregate volume of A$350 million (US$261.8 million). Fitch Ratings (Fitch) assigned preliminary ratings to four classes of notes on July 15. S&P Global Ratings (S&P) assigned preliminary ratings to seven classes of notes on July 20.
The sub-triple-A Kauri market is showing further signs of development, market participants say, although lead managers do not expect a near-term issuance rush. Following deals from Korea Development Bank (KDB) and a more recent follow up from Export-Import Bank of Korea's (Kexim), dealers say there may be an opportunity for increased issuer presence in the sub-triple-A space.
On July 21, Wells Fargo & Company (Wells Fargo) (A/A2/A-) priced a new, 10-year Australian dollar denominated senior-unsecured global transaction. The transaction priced in line with Initial price guidance at 170 basis points over semi-quarterly swap. This 10-year transaction comes after Wells Fargo printed A$1.4 billion in a new senior-unsecured five-year transaction on July 20. This transaction was also in global format.
On July 20, Wells Fargo & Company (Wells Fargo) (A/A2/A-) priced a new, dual-tranche five-year senior-unsecured global transaction for total volume of A$1.4 billion (US$1.05 billion). Initial price guidance was in the area of 135 basis points over semi-quarterly swap or three-month bank bill swap rate.
The first Australian semi-government issuer to bring a green bond to market says the genesis of its transaction lay in investor demand for the product. Treasury Corporation of Victoria (TCV) has a significant stock of certified green assets and is willing to return to the green-bond market – despite its relatively small term-funding programme and commitment to supporting benchmark liquidity.
On July 19, Asian Development Bank (ADB) (AAA/Aaa/AAA) priced the first increase to the October 2026 maturity Kangaroo it introduced in a A$225 million (US$170.9 million) transaction in April this year. The 2026 line's debut priced at 59.25 basis points over Australian Commonwealth government securities and is one of just two ADB visits to the Kangaroo market so far this year.