Citibank, the operating company (opco) issuer of Citi, issued its first-ever Australian dollar deal on 10 May. The transaction came in 3(a)(2) format, which limits domestic bank-balance-sheet participation. However, deal sources say the scarcity value of opco debt from a global bank was enticing for domestic fund managers.
On 19 November, Qantas Airways (Qantas) (Baa2) launched a new, 10-year domestic deal with indicative price guidance of 190-195 basis points area over semi-quarterly swap. Pricing is expected on the day after launch, according to joint lead managers Citi, Commonwealth Bank of Australia and National Australia Bank.
Deal sources say Citibank Sydney Branch (Citibank Sydney)’s debut domestic deal attracted significant demand from Australia and Asia as the issuer was able to capitalise on a brief pause in Australian dollar financial institution (FI) issuance at the beginning of November.
Citibank N.A. Sydney Branch (Citibank Sydney) (A+/Aa3) launched a new Australian dollar denominated transaction on 6 November. The forthcoming deal is potentially comprised of three- and five-year floating-rate notes and a five-year fixed-rate tranche. Indicative price guidance for the three-year and five-year tranches is, respectively, 75 and 93 basis points area over swap benchmarks.
On 6 November, Qantas Airways (Qantas) (Baa2) mandated Citi, Commonwealth Bank of Australia and National Australia Bank to arrange a series of investor meetings and calls in Australia and Asia in the week beginning 11 November regarding a potential 10-year, Australian dollar denominated benchmark transaction.