News
Suncorp-Metway (Suncorp) has priced its fourth domestic covered bond transaction on June 15. On June 14 the deal's lead managers revealed that the five-year bond would have indicative price guidance of 105-110 basis points over three-month bank bills.
On June 14, World Bank (AAA/Aaa) priced an increase to its January 2021 Kauri bond. According to KangaNews data, the deal is the issuer's second tap to this line. It was introduced in January for volume of NZ$550 million (US$386.6 million) and increased in April by a further NZ$600 million.
ANZ Banking Group (ANZ) says the US dollar tier-one transaction it priced on June 7 obviates local capacity constraints as well as enables the bank to access tenor which fits its desired overall funding profile. The issuer also confirms that it was able to print Australia's first offshore major-bank additional-tier one issue since 2009 thanks to a new, more commercial interpretation of tax provisions.
The market slowed this week coming into the Australia holiday weekend, although a highlight was the pricing of National Australia Bank's A$2 billion (US$1.5 billion) residential mortgage-backed securities transaction.
On June 10, ME (BBB+/A3) became the latest Australian financial institution (FI) to engage with the debt capital market, as the bank mandated a series of investor meetings to start from June 14. ANZ, National Australia Bank and UBS are arranging the meetings, which may precede a capital-markets transaction.
On June 9, National Australia Bank (NAB) priced its first prime residential mortgage-backed securities (RMBS) transaction of 2016. National RMBS Trust 2016-1 was assigned expected ratings on May 30, following a May 13 announcement that the bank would meet with debt investors ahead of a potential RMBS transaction. A preliminary rating report by Fitch Ratings (Fitch) revealed that National RMBS Trust 2016-1 consists of three tranches of notes with indicative volume of A$750 million (US$549.1 million).
On June 9, Crédit Agricole (A/A2/A) revealed plans to conduct an Australian and Asian investor call on Friday June 10. According to the call's arrangers, Crédit Agricole CIB, National Australia Bank, Nomura, UBS and Westpac Institutional Bank, a potential Australian dollar EMTN subordinated transaction may follow.
Australian investors say the outcome of Apple's second Australian dollar transaction, the second jumbo Kangaroo corporate print in three days, illustrates the extent of local capacity for true corporate issuance. Apple added A$1.425 billion (US$1.1 billion) to the A$1 billion printed by the Coca-Cola Company to make a record corporate Kangaroo week.