The future of interbank offered rates (IBORs) is under question globally. While Australia’s rate appears to stand a better chance of survival than many of its global peers, local market participants cannot afford to be complacent in a rapidly evolving environment. IBOR transition was explored in depth at the KangaNews Debt Capital Markets Summit 2019, including in a panel discussion featuring leading local and international experts.
BNG Bank (AAA/Aaa/AAA) launched a minimum A$20 million (US$13.5 million) increase to its July 2028 Kangaroo bond on 1 October. The deal is being marketed at 51 basis points area over semi-quarterly swap, equivalent to 50 basis points area over Australian Commonwealth government bond and is expected to price on the day of launch. TD Securities is leading.
On 20 September, Banco Santander (A/A2/A-) launched a new, five-year,senior-preferred, Australian dollar denominated deal. The forthcoming transaction will come in either or both fixed- and floating-rate formats and has indicative price guidance of 125 basis points area over swap benchmarks. Pricing is expected on the day of launch, according to lead managers Nomura and TD Securities.