News
Annual results released on October 28 by National Australia Bank (NAB) highlight the impact of the bank's A$5.5 billion (US$4.0 billion) equity raising in May. NAB also expects to add approximately 50 basis points more to a common-equity tier-one (CET1) ratio which had reached 10.2 per cent by the end of September this year, ahead of events which will reduce the position significantly.
Bank of America Australian Branch (BoA Australia) (A/A1/A+) priced a new Australian dollar three-year floating-rate issue on October 27. According to the deal's lead managers – ANZ, Bank of America Merrill Lynch, National Australia Bank and Westpac Institutional Bank – the deal could have included either of both of fixed- and floating-rate notes.
Queensland Treasury Corporation (QTC) (AA+/Aa1) priced new benchmark 2026 maturity bond transaction on October 27, in what is the fifth syndicated deal from an Australasian sovereign or semi-government issuer inside a fortnight. All have been of at least 10-year tenor.
Macquarie Bank (Macquarie) priced a new asset-backed securities (ABS) transaction on October 23, its first multi-currency issue since March. SMART ABS Series 2015-3US Trust has a six-tranche structure including both US and Australian dollar-denominated senior notes, and total equivalent volume of A$800 million (US$585.8 million) according to an October 15 report from Fitch Ratings (Fitch).
On October 23, Bank of Queensland (BOQ) (A-/A3/A-) priced a new, 3.5-year, senior-unsecured issue in the Australian market. The deal follows a series of investor meetings which took place earlier this week.
Domestic deal flow dominated during the week under review, with three new deals priced. Elsewhere, the Australian government delivered its response to the financial-system inquiry and the Australian Office of Financial Management's fifth residential mortgage-backed securities auction saw no volume shifted.
The Australian Office of Financial Management (AOFM)'s first auction of residential mortgage-backed securities (RMBS) since Scott Morrison replaced Joe Hockey as Australia's federal treasurer saw zero volume sold despite bids being received in two of the four lines offered.
On October 22, Treasury Corporation of Victoria (TCV) (AAA/Aaa) priced a new, October 2028, benchmark bond in what is the borrower's first syndicated deal of 2015. According to KangaNews data, TCV priced its previous syndication in February 2014. This A$33 million (US$24 million), November 2040 bond priced at 63.25 basis points over Australian government bond.
Westpac Banking Corporation (Westpac) (AA-/Aa2) lunched and priced a new, self-led, five-year, senior-unsecured domestic deal on October 22. According to KangaNews data, the issuer priced its most recent benchmark-sized deal in July this year. That dual-tranche – A$2.7 billion floating- and A$200 million fixed-rate – deal had pricing of 90 basis points over bank bills and semi-quarterly swap.
On October 20, Groupe BPCE (BPCE) (A/A2/A) priced its inaugural Australian tier-two transaction. According to KangaNews data, the deal is the second tier-two Kangaroo bond to be issued since 2007. Rabobank Nederland (Rabobank) issued a similar transaction in June this year.