News
At its half-year results, announced on February 11, Commonwealth Bank of Australia (CommBank) disclosed a substantial increase in the size of its liquid assets book from six months earlier. Its common equity tier-one (CET1) capital position, by contrast, fell slightly in the six-month period – although an earlier significant increase keeps CommBank at the top of its domestic peer group according to most recently released results.
World Bank (AAA/Aaa) priced an increase to its June 2025 Kangaroo line on February 10. According to KangaNews data, the forthcoming transaction will be the second increase of the line which was introduced in June last year at volume of A$300 million (US$233.1 million) and pricing of 55.5 basis points over Australian government bond (ACGB).
Volkswagen Financial Services (VWFS) has mandated a series of investor meetings in Australia in the week of February 16, to discuss a potential asset-backed securities (ABS) deal. A transaction under its domestic Driver Australia ABS programme may follow.
The week under review saw a couple of 2015 firsts – robust demand met the first syndicated semi deal of the year from Western Australian Treasury Corporation, while Macquarie Bank reopened the Australian securitisation market with pricing of a new residential mortgage-backed securities (RMBS) deal. *Registrations are now open for the 2015 KangaNews DCM Summit on March 16&17 in Sydney and the KangaNews NZ Capital Markets Forum 2015 on March 19 in Wellington. For an up-to-date agenda and instructions on how to register for the Sydney conference click here, and for the Wellington conference click here.*
Macquarie Bank priced an upsized A$2 billion (US1.6 billion) Australian dollar residential mortgage-backed securities (RMBS) issue on February 6. According to a preliminary ratings report, the transaction – PUMA Series 2015-1 Trust – had an indicative volume of A$500 million.
Western Australian Treasury Corporation (WATC) (AA+/Aa1) found lower Australian rates no barrier to its February 5 return to the syndicated market. In fact, the issuer tells KangaNews it attracted a demand profile which hints at a more robust demand story for Australian dollar high-grade assets than many observers might assume.
On February 5, BNG Bank (AA+/Aaa/AAA) mandated and priced the first increase to its February 2018 Kangaroo issue. According to KangaNews data, BNG Bank's 2018 line was introduced in February 2014 at a volume of A$150 million (US$116.3 million) and pricing of 63 basis points over Australian government bond (ACGB).
Western Australian Treasury Corporation (WATC) (AA+/Aa1) priced a new July 2020 benchmark issue in the domestic market on February 5. The deal is the first syndicated transaction from an Australian semi-government issuer for 2015.
On February 5, Rentenbank (AAA/Aaa/AAA) priced an increase to its April 2024 Kauri, in the issuer's second visit to the market in 2015. According to KangaNews data, Rentenbank first introduced its 2024 line in April last year at a volume of NZ$175 million (US$129.0 million) and pricing of 85.5 basis points over New Zealand government bond (NZGB).
Rabobank Nederland Australia Branch (Rabobank Australia) – the fourth borrower to issue a deal in the domestic market in 2015 – cites buoyant investor demand, particularly for five-year paper, as the main factor behind its largest single-transaction print since 2012. Distribution data provided by the issuer reveal the support of a substantial offshore bid.