News
Common equity will do the heavy lifting in the latest capital-boosting effort by an Australian major bank. ANZ Banking Group (ANZ) announced on August 6 its intent to conduct a A$2.5 billion (US$1.8 billion) institutional share placement (ISP) and a A$500 million share-purchase plan (SPP). The move comes as clarity begins to emerge around the timing and quantum of capital changes in Australia, particularly in relation to mortgage risk weights.
On August 6, Volkswagen Financial Services Australia (VW Australia) (A/Aa3) priced a new four-year, fixed-rate domestic benchmark deal. According to joint lead managers Commonwealth Bank and RBC Capital Markets, indicative pricing guidance on the forthcoming deal was in the area of 95 basis points over semi-quarterly swap, and the deal was increased from a minimum A$100 million (US$73.7 million).
On August 6, Swedish Export Credit Corporation (SEK) (AA+/Aa1) priced an increase to its 2024 Kangaroo bond. According to KangaNews data, the tap will is the first increase to this line, which was first introduced in May last year at pricing of 96 basis points over Australian government bond.
On August 5, Westpac Banking Corporation (Westpac) completed the bookbuild on its latest domestic tier-one capital notes offer. A statement lodged with the Australian Securities Exchange (ASX) reveals that the deal – Westpac Capital Notes 3 – was increased to A$1.25 billion (US$ 877.2 million from A$750 million and the margin set at the tight end of 400-420 basis points over bank bill swap rate price guidance.
The latest offshore corporate issuer to debut in the Australian market says local capacity exceeded its expectations. Meanwhile, intermediaries insist that recovering spreads are supportive of a growing new-issuance pipeline.
The recent deluge of supranational, soverign and agency Kangaroo issuance continued through to the end of July, supported by attractive market fundamentals. Meanwhile, in the Australian domestic market SABMiller priced its debut via a local subsidiary and World Bank reopened the Kauri market with an increase to its 2021 line.
The Australian Office of Financial Management (AOFM)'s Canberra-based chief executive, Rob Nicholl, and director of financial risk, Michael Bath, have shared insights with KangaNews around their assessment of the progress to date of the agency's divestment of residential mortgage-backed securities (RMBS).