News
La Trobe Financial priced it's second-ever issue of residential mortgage-backed securities (RMBS) on May 29. The transaction – La Trobe Financial Capital Markets Trust 2015-1 – consists of notes backed by nonconforming residential mortgages across eight tranches.
BNG Bank launched and priced another increase to its July 2025 Kangaroo on May 29. According to KangaNews data, the line was introduced on January 7 this year at volume of A$150 million (US$114.8 million) and pricing of 81 basis points over Australian government bond (ACGB). The line has since been tapped several times – most recently by A$50 million on April 28 and with pricing of 69.5 basis points over ACGB.
In the wake of its curve-extending 10-year transaction – its third issue in the Kangaroo market – Corporación Andina de Fomento (CAF) reveals that building a curve in Australian dollars is a specific priority for the supranational. Domestic investors are gradually becoming less cautious with Latin America as a region, the deal's lead managers insist, as familiarity grows.
On May 28, Australian Natural Proteins announced plans for a senior-unsecured bond issue for up to A$50 million (US$38.3 million). According to a statement on the Australian Securities Exchange released by the issuer, Australian Natural Proteins is targeting a seven-year fixed-rate transaction with an indicative coupon of 7.5 per cent.
On May 28, Westpac Banking Corporation (Westpac) priced its first prime residential mortgage-backed securities (RMBS) deal of 2015. WST 2015-1 Trust – a securitisation of prime Australian residential mortgages – was upsized from provisional volume of A$750 million (US$585.7 million) across three tranches.
Australasian-origin US private placement (USPP) issuance in the year to date has seen a surge from previous years as borrowers appear to be even more drawn to the long-tenor US market than has previously been the case. Recent issuers and intermediaries tell KangaNews the main factors which are attracting players to the region show no sign of abating.
ANZ Banking Group (ANZ) (AA-/Aa2/AA-) priced its debut, self-led Australian dollar green-bond deal on May 27. The five-year fixed-rate senior-unsecured benchmark transaction priced at initial price guidance in the area of 80 basis points over semi-quarterly swap.
Corporación Andina de Fomento (CAF) (AA-/Aa3/AA-) priced a new 10-year issue in the Australian market on May 27. The transaction is CAF's third line in the Kangaroo market and extends its curve out to 2025.
FlexiGroup has mandated a series of debt investor meetings in Australia in the week of June 1, to discuss a potential asset-backed securities (ABS) deal. A transaction under the Flexi ABS Trust programme may follow.
National Australia Bank (NAB) (AA-/Aa2/AA-) launched and priced a new self-led senior-unsecured five-year benchmark Australian dollar transaction on May 26. According to KangaNews data, the issuer's most recent senior-unsecured deal priced in December last year. That A$300 million (US$234.9 million) seven-year debut green bond transaction had pricing of 137 basis points over Australian government bonds.
Key market participants' responses to the news that the Australian Securities Exchange (ASX) will launch a new 20-year Commonwealth government securities (CGS) futures contract later this year diverge. Some are quietly confident that liquidity in the bonds will grow sufficiently quickly to be of immediate benefit to the Australian rates market as a whole, while others suggest the precedents are unconvincing.