News
Australia's second tier-one listed transaction from a major bank in 2015 achieved a larger volume and a tighter margin than the first. The issuer suggests this points to market recovery following recent volatility – but also notes the ongoing need for caution around deal size and timing.
Suncorp-Metway (Suncorp) priced its first residential mortgage-backed securities (RMBS) deal of 2015 on ebruary 26. The transaction – Apollo Series 2015-1 Trust – was upsized an indicative volume of A$750 million (US$588.2 million) across five tranches.
Macquarie Bank (Macquarie) (A/A2/A) priced a new Australian dollar denominated five-year senior-unsecured benchmark issue on February 26. The deal, which follows a series of fixed-income investor meetings which took place in Australia commencing February 19, is the first senior-unsecured transaction from a Macquarie entity since it priced a A$1.1 billion (US$860.9 million) government-guaranteed line in February 2009. This bond has a February 2015 maturity date.
On February 26, Industrial Bank of Korea (IBK) (A+/Aa3/AA-) priced a new Kangaroo bond. This is IBK's second Australian dollar-denominated deal following its A$350 million (US$275.7 million), three-year debut in January 2012.
On February 26, South Australian Government Financing Authority (SAFA) (AA/Aa1) priced an increase to its November 2023 benchmark select line via syndication.
On February 26, Rentenbank (AAA/Aaa/AAA) priced a new September 2022 Kangaroo benchmark line. According to KangaNews data, the transaction is the fifth time the issuer has visited the Kangaroo market in 2015. It most recently priced a A$150 million (US$117.4 million) increase to its 2025 line on January 28, which had pricing of 46.25 basis points over Australian government bond.
Kommunalbanken Norway (KBN) (Aaa/AAA) priced a new September 2020 transaction on February 26, a day after mandating the deal. The new bond fills a gap in the issuer's Kangaroo curve between its January 2019 and April 2021 lines.
The Australian Prudential Regulation Authority (APRA) gave an update on its review of lending practices in the housing market on February 25. The regulator emphasised the supervisory, rather than prescriptive, nature of its oversight – and stressed that it does not believe it has a mandate to influence the outright level of house prices.
Volkswagen Financial Services (VWFS) priced its Australian securitisation-market return on February 26. Driver Two Australia Trust is the second term securitisation backed by Australian automotive receivables originated by VWFS.
Resimac announced on February 26 that it is preparing a series of Australian investor updates, to commence on March 2, ahead of a potential Australian-dollar denominated residential mortgage-backed securities (RMBS) transaction under its Resimac Bastille programme. Bastille is the vehicle Resimac uses for placing nonconforming RMBS.
BNG Bank (AA+/Aaa/AAA) mandated and priced an increase to its July 2025 Kangaroo bond on February 25. According to KangaNews data, the deal is the first increase of a line which was introduced on January 7 this year, for volume of A$150 million (US$118.3 million) and pricing of 81 basis points over Australian government bond.
On February 25, Commonwealth Bank of Australia (CommBank) (AA-/Aa2/AA-) mandated banks to arrange a roadshow ahead of a potential Basel-III compliant CNH-denominated transaction. Australia's major banks have universally acknowledged the benefits of diversifying their tier-two funding need, and the renminbi market has proved fertile ground in this respect in recent months.