News
Australia's federal treasurer, Scott Morrison, says the focus of the government's superannuation system reforms will "shift a little" to the retirement phase in 2016. Morrison says one of the three key goals of Australia's superannuation regime has always been promoting better standards of living in retirement, and implies that it could do better in this respect.
Liberty Financial (Liberty) priced ts first asset-backed securities (ABS) transaction of 2015 on November 27, with expected ratings assigned to the new deal on November 26. Liberty Series 2015-1 Auto Trust (Liberty 2015-1 Auto) has a seven-tranche structure and volume of A$200 million (US$144.6 million).
Macquarie Group (Macquarie) disclosed to the Australian Securities Exchange (ASX) on November 26 that it has closed the bookbuild on its offer of domestic tier-one notes. The announcement also reveals that the transaction has been increased to A$500 million (US$359 million) from A$400 million and the margin has been set at 515 basis points over bank bill swap rate, the tight end of 515-535 basis points indicative guidance.
The repurchase of A$526 million (US$379.8 million) of benchmark bonds by New South Wales Treasury Corporation (TCorp) on November 26-27 puts the issue of limited semi-government bond supply in the spotlight, say analysts and other market participants. TCorp completed the second of two buyback tenders on November 27, retiring A$300 million to add to the A$226 million taken out the preceding day.
On November 26, Sumitomo Mitsui Banking Corporation Sydney Branch (SMBC Sydney) (A/A1/A) priced a new benchmark Australian dollar transaction. The three-year deal is SMBC Sydney's second domestic issue of 2015, following a A$850 million (US$616.9 million) five-year line priced in March.
Fortescue Metals Group (Fortescue) (BB/Ba2/BB+) revealed it has successfully repurchased US$750 million in face value of its 2019 and 2022 maturity senior-unsecured bonds. Fortescue says the repayment offer will save the company approximately US$56 million in annual interest payments in addition to a US$124 million pre-tax gain.
The latest draft version of APS 120, the Australian Prudential Regulation Authority (APRA) rules governing securitisation, offers securitisers more user-friendly oversight than that set out in previous iterations of the standard. Significant moves include a potentially lighter-touch warehouse regime, the removal of a range of restrictions which many believed would block the development of master trusts in Australia, and the end of proposed 'skin in the game' requirements.
Intel Corporation (Intel) (A+/A1/A+) priced its debut Kangaroo deal late in the Australian day on November 24. The deal includes fixed-rate tranches of four- and seven-year maturity but did not print the four-year floating-rate notes which were sounded. It follows a series of calls with Australian investors which began on November 18.
There is a reasonable pipeline for the final few weeks of 2015, with expectation of deals from Intel in Australia and Spark New Zealand across the Tasman. Staying in New Zealand ASB Bank printed its first domestic benchmark issue in the local market since January and Bank of New Zealand upsized and set the margin on its domestic tier-two issue.
On November 20 Korea Development Bank (KDB) (AA-/Aa3/AA-) priced a new, senior-unsecured, Australian dollar bond. According to KangaNews data, the bond is KDB's first Kangaroo-market foray in 2015.
Bank of New Zealand (BNZ) disclosed to the NZX on November 20 that it has closed the bookbuild on its offer of domestic subordinated notes. The announcement also reveals that the transaction has been increased to NZ$550 million (US$362.2 million) from an indicative size of up to NZ$300 million and the margin has been set at 225 basis points over mid-swap.