Commonwealth Bank of Australia
Commonwealth Bank of Australia (CommBank)’s residential mortgage-backed securities (RMBS) deal, Medallion Trust Series 2018-1 (Medallion 2018-1), broke new ground in the Australian market with the three-year revolving facility supporting a longer-than-usual weighted-average life (WAL). The issuer insists this innovation adds a valuable tool to the bank’s funding options.
On 13 November, Toyota Finance Australia (Toyota Australia) (AA-/Aa3) launched a new, benchmark Australian dollar denominated transaction. The forthcoming deal will be comprised of three-year tranches in either or both fixed- and floating-rate format with indicative price guidance of 78 basis points area over swap benchmarks. There will also be a five-year fixed-rate tranche, being marketed at 100 basis points area over semi-quarterly swap.
On 12 November, Think Tank Group (Think Tank) launched its new SME commercial mortgage-backed securities (CMBS) transaction, Think Tank Series 2018-1. The forthcoming deal has a capped volume of A$315 million (US$227.2 million) and is expected to price on or before 16 November.
On 12 November, South Australian Government Financing Authority (SAFA) (AA+/Aa1) revised the price guidance for its May 2028 select line syndicated tap to 48-49 basis points over the 10-year futures contract, having launched with a guidance range of 48-50 basis points earlier in the day. The issuer also reveals that bids for the deal – which is capped at A$1 billion (US$721.5 million) – are currently in excess of A$1.48 billion.
On 12 November, Westpac Banking Corporation (Westpac) launched its additional tier-one (AT1) notes offer, Westpac Capital Notes 6. The forthcoming deal is expected to raise A$750 million (US$541.5 million), with the ability to take more or less. The transaction is being marketed at 370-390 basis points over three-month bank bills, with the final margin to be determined at the completion of a bookbuild, expected 19 November.