News
On February 22, CNH Industrial Capital Australia (CNH Capital) revealed plans to update investors in its receivables trust programme while Volkswagen Financial Services (VWFS) disclosed its intention to carry out a series of conference calls for asset-backed investors in its Driver Australia programme.
Deal activity picked up, albeit moderately, during the second last week of February. Four Kangaroos priced from SSA issuers, the largest being a A$200 million (US$142.3 million) tap to KfW Bankengruppe's January 2019 line. National Australia Bank also printed a new three-year, floating rate note in the Australian market.
On February 18, KfW Bankengruppe (KfW) (AAA/Aaa/AAA) priced an increase to its January 2019 Kangaroo line. This is the fourth tap to the bond and the first since November 2014, according to KangaNews data. It has A$1.3 billion (US$932 million) on issue ahead of the tap.
Securitisation market participants say the slow start to the issuance year in their sector comes as no surprise given wider market conditions. They also acknowledge ongoing demand challenges that could shave volume off deals from the largest issuers in particular – but remain confident that deals will come through, and be available to a diverse range of issuers.
On February 18, National Australia Bank (NAB) (AA-/Aa2) mandated a new, self-led, three-year senior benchmark Australian dollar transaction. According to KangaNews data, the forthcoming deal will be NAB's first domestic-market foray of 2016.
On February 17, Transurban Finance (Transurban) issued an early redemption notice to the holders of its "series 12 non-credit-wrapped MTNs" which mature on June 8 this year. According to a statement released by the issuer, the offer covers A$200 million (US$142.16) of the floating-rate notes – or the total outstanding principal amount.