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 8 July, DBS Group Holdings (DBS) (Aa2/AA-) launched a new, three-year, senior-unsecured Kangaroo deal, to come in either or both fixed- and floating-rate format. The forthcoming deal has indicative price guidance of 75 basis points area over swap benchmarks and is expected to price on the day of launch. Commonwealth Bank of Australia, DBS, National Australia Bank, TD Securities and Westpac Institutional Bank are joint lead managers.
On 7 July, DBS Group Holdings (Aa2/AA-) began taking indications of interest for a new three-year, Kangaroo, senior-unsecured transaction, offered in either or both fixed and floating-rate note format. The potential deal is being marketed at 75 basis points area over swap benchmarks.
On 6 July, Resimac added Commonwealth Bank of Australia, Deutsche Bank and Wells Fargo Securities to its joint lead manager panel for its potential non-conforming residential mortgage-backed securities (RMBS) deal from its Bastille programme.
The Australian dollar corporate debt market finished the first half of 2020 with a flurry of deals and greatly improved sentiment. Corporate originators do not expect the floodgates of issuance to open in the second half but say conditions should be supportive for active issuers.