News
The Reserve Bank of Australia (RBA) cut the cash rate by 25 basis points to 2.00 per cent on May 5 and at the same time signalled an end to the strong easing bias seen in the March and April statements. Left with little obvious guidance as to the future path of monetary policy pressure may grow, analysts say.
On May 4, Firstmac revealed it is preparing to launch a new prime residential mortgage-backed securities (RMBS) transaction in the Australian market. The forthcoming transaction will be Firstmac's first in the local market in 2015.
Kiwibank confirmed on May 1 that the bookbuild on its latest issue of domestic tier-one hybrid securities has been completed and that NZ$150 million (US$112.9 million) has been allocated. The margin on the issue, which is being arranged via special-purpose vehicle Kiwi Capital Funding, has been set at the tight end of the indicative margin range of 365-395 basis points over bank bills.
Who? Local Government Funding Vehicle What? Debut bond transaction When? November 2014 How much? A$240.1 million NAB role Joint arranger and lead manager Key innovation The first-ever transaction by a pooled funding vehicle for local councils in Australia
Kangaroo deal flow dominated during the week under review – with several new deals priced – as the relative appeal of Australian dollar product rebounds to reach the highest first third volumes since 2010. On the other side of the Tasman Sea issuance is dormant.
On May 1, Inter-American Development Bank (IADB) (AAA/Aaa) mandated and priced an increase of its October 2025 Kangaroo bond. According to KangaNews data, the line was introduced last week on April 21. That A$200 million (US$157.7 million) transaction had pricing of 55.5 basis points over Australian government bond.
Who? BHP Billiton Finance What? Five-year AUD fixed-rate MTN When? March 2015 How much? A$1 billion NAB role Joint bookrunner and joint lead manager Key innovation Equalling the largest deal size in the Australian corporate market despite the backdrop of a commodity downturn.
The relative appeal of Australian dollar product appears to have rebounded, as Kangaroo supranational, sovereign and agency (SSA) market participants cite this among a number of drivers which have spurred year-to-date volumes to their highest levels since 2011. The market's latest issuer, FMS Wertmanagement (FMS), confirms very attractive market fundamentals drove its return to Kangaroo issuance after a three-year gap.
On April 30, Bendigo and Adelaide Bank (BEN) announced it had completed the bookbuild for its latest hybrid transaction, CPS3. A statement lodged with the Australian Securities Exchange (ASX) reveals that the offer of additional tier-one qualifying capital has been increased to A$225 million (US$177.7 million) from A$200 million.
The review of Australia's tax system continues to attract interest and comment from senior financial markets figures, but the tone of the debate is lending substantial support to the status quo in areas which influence national asset allocation. Negative gearing, tax on superannuation and dividend imputation are all up for discussion, but the prospects of overhaul are complicated by the implications of change.
La Trobe Financial has mandated a series of Australian dollar residential mortgage-backed securities (RMBS) debt investor meetings in Australia in the week beginning May 6. The meetings' arranger, Commonwealth Bank, says the issuer is "exploring funding opportunities across a range of markets".
FMS Wertmanagement priced a new four-year Kangaroo transaction on April 30, in what is the issuer's third-ever deal in the Australian market and its first since 2012. The German financial-stability agency priced both its previous Kangaroos in 2012, for a total of A$750 million (US$599.9 million). The shorter of these lines, which has A$250 million on issue, matures in July this year.