News
SABMiller (A-/A3) priced a new, five-year benchmark transaction in the Australian market on July 30 via its fully guaranteed subsidiary, FBG Treasury Australia. The forthcoming deal priced 7 basis points inside guidance which was 135 basis points area over swap.
Asian Development Bank (ADB) (AAA/Aaa) priced a tap to its January 2020 Kangaroo bond on July 31. According to KangaNews data, the line was introduced as part of a dual-tranche five- and 10-year transaction that was launched in January this year. The A$700 million (US$510.6 million) five-year bond had pricing of 44 basis points over Australian government bond.
Royal Bank of Canada Sydney Branch (RBC Sydney) (AA-/Aa3) priced a new three-year dual-tranche senior-unsecured benchmark issue in the domestic market on July 30. According to KangaNews data, this is the second time the borrower has visited the market this year following pricing of a dual-tranche deal on January 30. That A$200 million (US$146.8 million) fixed- and A$1 billion floating-rate five-year deal, which was the issuer's second-ever domestic transaction, had pricing of 95 basis points over semi-quarterly swap and bank bills respectively.
Resimac has mandated a series of investor meetings and calls in order to provide an update on its Premier residential mortgage-backed securities (RMBS) programme. According to the meetings' arranger National Australia Bank and additional joint lead managers J.P. Morgan and Westpac Institutional Bank, an Australian dollar transaction "may follow subject to market conditions".
Issuers and intermediaries predict the deluge of supranational, sovereign and agency (SSA) Kangaroo issuance is likely to continue, thanks to a range of market-altering technical factors. Uncertainty around Greece has affected not only the cross-currency basis swap but also appetite for Europe-origin credits, revealing issuance opportunities.
International Finance Corporation (IFC) (AAA/Aaa) priced a new 5.5-year Australian dollar benchmark bond on July 28, following its mandate on July 24 and launch on July 27.
Municipality Finance (MuniFin) (AA+/Aaa) priced a new 10.5-year line in the Kangaroo market on July 24. MuniFin last issued in the local market on April 17, when it priced a A$75 million (US$55.3 million) tap to its 2024 bond.
The Kangaroo market sprung into life during the week under review with more than A$1.4 billion (US$1 billion) of issuance priced. The major banks gave their read on funding accessibility during this period, ME tripled its first RMBS of 2015 and the RBNZ cut rates again.