News
On August 19, Nissan Financial Services Australia (Nissan Australia) (A- by S&P) mandated a series of investor meetings in the week starting August 31.
On August 18, University of Sydney (Aa1) launched and priced a new 10-year transaction in the Australian domestic market. Indicative price guidance was in the area of 95 basis points over semi-quarterly swap.
The Australian Office of Financial Management (AOFM) announced on August 18 that it will reduce the total volume of residential mortgage-backed securities (RMBS) notes for sale in each of its monthly auctions until further notice. Forthcoming RMBS auctions will have a total volume of A$350-400 million (US$257.8-294.6 million) in amortised face value (AFV) terms each, still within the expected A$300-500 million range but less than the approximately A$500 million offered in each of the first three auctions.
Credit Suisse, Sydney Branch (Credit Suisse Sydney) (A/A1/A) priced a new, three-year, senior-unsecured benchmark transaction on August 18, in what is the issuer's second domestic deal of 2015.
On August 18, Western Australian Treasury Corporation (WATC) (AA+/Aa1) priced an increase to its July 2020 benchmark line. According to KangaNews data, the deal is the first syndicated tap of the line which was introduced in February this year, at volume of A$1.1 billion (US$810.5 million) and pricing of 46 basis points over Australian government bond.
Teachers Mutual Bank (Teachers Mutual) has become the first Australian financial institution to have its entire wholesale debt issuance programme certified as ethical. In response to increased interest in ethical investment options, the bank says, it sought ethical certification from the Responsible Investment Association of Australia (RIAA) for its A$500 million (US$368.1 million) debt issuance programme.
Investor demand for residential mortgage-backed securities (RMBS) appears to have ridden out recent uncertainty, according to sources involved with Resimac's second RMBS issue of 2015. On its August 11 pricing date, the four-tranche RMBS deal – Resimac Premier Series 2015-1 – offered total volume of A$500 million (US$368.4 million).
On August 13, QIC Shopping Centre Fund (A- by S&P), launched and priced a new A$200 million (US$146.9 million) 5.5-year bond, at a launch margin of approximately 135 basis points over semi-quarterly swap. QIC Shopping Centre Fund met with investors in Asia and Australia to "explore opportunities for a capital markets transaction" in July.
In the wake of Export-Import Bank of Korea (Kexim)'s latest Australian dollar transaction – its fourth in the local market – intermediaries say investor interest in Korean exposure is rising. A quartet of upcoming redemptions could also support a resumed Korean Kangaroo pipeline.
Supply in the second week of August was bolstered by a A$1.25 billion (US$921.5 million) Australian Office of Financial Management inflation-linked bond, its first syndicated linker since 2013. Resimac and Export-Import Bank of Korea issued, and Teachers Mutual pioneered an all-green wholesale debt-funding programme.