News
World Bank (AAA/Aaa) priced a A$800 million (US$575.6 million) tap to its January 2021 Kangaroo bond on May 24. According to KangaNews data, the line was introduced in January this year for volume of A$550 million and initial pricing of 59 basis points over the May 2021 Australian Commonwealth government security (ACGS). The line was then subsequently tapped in April, for A$550 million at 56.75 basis points over ACGS.
In the wake of Firstmac's first prime residential mortgage-backed securities (RMBS) transaction of 2016, the issuer confirms to KangaNews that securitisation demand dynamics have changed – but points to emerging demand from a specific offshore region as a key highlight.
On May 23, Ford Motor Credit Company (FMCC) (BBB-/Baa3/BBB-) revealed plans to conduct a fixed-income investor call on May 24. According to the call's arrangers ANZ, Citi and Deutsche Bank, an Australian dollar denominated transaction may follow.
Firstmac priced its first residential mortgage-backed securities (RMBS) transaction of 2016 on May 20. Firstmac 2-2016 was upsized from its indicative aggregate volume of A$350 million (US$255.6 million).
Deal activity continued at a steady pace during the third week of May with pricing action on both sides of the Tasman Sea. Meanwhile, treasurer of Victoria, Tim Pallas, spoke exclusively to KangaNews about the state's infrastructure programme, its fiscal strength and green bonds.
Industrial and Commercial Bank of China Sydney Branch (ICBC Sydney) priced a new domestic deal on May 20. The transaction priced 3 basis points inside indicative price guidance, at 125 basis points area over three-month bank bill swap rate (BBSW).
Despite a dismal start to the year for true corporate issuance in the Australian dollar market, participants in the seven- and 10-year deal priced by Airservices Australia (AsA) on May 12 say demand for corporate paper is vibrant. AsA printed A$400 million (US$288.9 million) from a book of roughly double that volume, and lead managers also point to corporate reverse enquiry demand on what they say is a near-unprecedented scale.
Insurance Australia Group (IAG) (A by S&P) revealed on May 18 that it has completed the bookbuild on its subordinated convertible notes offer. The issuer has sized the offer at NZ$350 million (US$237.7 million), the maximum of the NZ$250-350 million indicative range, and fixed the margin at 260 basis points over mid-swap. The interest rate, until the first optional redemption date of June 15 2022, will be 5.15 per cent.
The five-year Australian dollar transaction mandated by AMP Bank (AMP) (A+/A2) on May 16 launched and priced the following day. The transaction is the issuer's first senior-unsecured domestic deal of 2016.
The new 10-year domestic benchmark issue for Australian Capital Territory (ACT) (AAA by S&P) priced on May 17. The transaction was the first syndicated issue by the territory in two years. According to KangaNews data, ACT's previous syndicated issue was a A$500 million (US$363.8 million) 10-year transaction, priced at 44.5 basis points over Australian Commonwealth government bond in May 2014.