Commonwealth Bank of Australia
The impending likely demise of global interbank offered rates has sparked many questions for the Australian market. Its local credit reference rate appears to be relatively robust – though its status is not unimpeachable – while the importance of cross-border issuance to Australian borrowers requires engagement with international IBOR developments. KangaNews and Commonwealth Bank of Australia brought together key market participants in late January to discuss the way forward.
On 10 January, BNP Paribas (A+/Aa3/AA-) launched a new 7.5-year, Australian dollar denominated, senior nonpreferred, EMTN, benchmark transaction, offered in either or both fixed and floating-rate format. Indicative price guidance for the forthcoming deal, which is expected to price on the day of launch, is 140 basis points area over swap benchmarks.
Australia’s major banks have hit the ground running in 2020 with three of the big four taking funding opportunities at home and abroad by 7 January and the fourth lining up a new trade. Despite developing domestic and international crises, the borrowers say markets have maintained momentum from 2019 and investors are prepared for a busy open to the year.
On 9 January, BNP Paribas (A+/Aa3/AA-) began taking indications of interest for a new 7.5-year, Australian dollar denominated, senior nonpreferred, EMTN deal, offered in either or both fixed and floating-rate format. Initial price guidance for the transaction is 140-145 basis points area over swap benchmarks. The deal is expected to be rated A-/Baa1/A+.
Australian Securitisation 2019 took place in Sydney on 18 and 19 November with market-leading commentary on the evolution of the securitisation market, including collateral, lending regulation and benchmark reforms. The Australian securitisation market is poised to enter the next decade in robust shape, reflected by a record registration for and attendance at the Australian Securitisation Forum’s annual conference.