News
Pepper Australia (Pepper) priced its second Australian dollar nonconforming residential mortgage-backed securities (RMBS) issue of 2014 on October 3.
Woolworths has completed a A$400 million (US$351.5 million) transaction in relation to its Work Cover contingent obligations, accessing the capital markets as its ultimate investor base. The transaction is believed to be the world's first syndicated bank-guarantee facility placed exclusively with global insurance companies, and deal sources say it highlights the potential for deals of this type to free up bank credit lines for corporate borrowers.
Commonwealth Bank of Australia (CommBank) disclosed an upsized volume on its latest tier-one hybrid offer on October 2. In a statement lodged with the Australian Securities Exchange, the issuer confirms that the offer has been upsized to A$3 billion (US$2.6 billion) from A$2.6 billion. The transaction was launched at a A$2 billion size.
In the wake of its third euro transaction, Wesfarmers tells KangaNews that the decision to issue offshore was made on the basis of execution certainty despite a softer European backdrop. Even so, the borrower says the decision to issue euros was a close call over returning to the Australian dollar market.
On October 1, KfW Bankengruppe (KfW) (AAA/Aaa/AAA) mandated and priced the second increase to its existing A$600 million (US$524.7 million) February 2025 Kangaroo. According to KangaNews data, the line was introduced in August this year at a volume of A$450 million and pricing of 57.5 basis points over Australian government bond (ACGB). The line was first increased by A$150 million in later in September with pricing of 54.5 basis points over ACGB.
Debut deals were prevalent in the Australasian markets during the last full week of September with Korea National Oil Corporation pricing a A$350 million (US$306.4 million) dual-tranche inaugural Kangaroo and Resimac issuing its first New Zealand domestic RMBS. Elsewhere, IFC extended its Kangaroo curve.
Korea National Oil Corporation (Koroil) (A+/AA-) priced a five-year dual-tranche Kangaroo transaction on September 26, in what is the issuer's first foray into the Australian domestic market. The deal is just the third Kangaroo transaction from a Korean issuer in 2014, and the first from a debut borrower.
A shift in long-held domestic investor attitudes towards securitisation product, at least partly owing to the growth of KiwiSaver, paved the way for New Zealand's first residential mortgage-backed securities (RMBS) issue in four years, the deal's issuer and lead manager say. This sea change is also aiding participation further down the capital structure than ever before.
International Finance Corporation (IFC) (AAA/Aaa) priced a new transaction in the Australian market on September 26. The new 10.5-year line extends IFC's Kangaroo curve beyond its previous longest maturity of August 2023.
AMP Wholesale Office Fund (AWOF) (A-) priceed a new seven-year issue in the Australian market on September 25. The forthcoming transaction had price guidance in the area of 135 basis points over semi-quarterly swap and launch volume of A$250 million (US$221.7 million).