On 18 March, MUFG Bank Auckland Branch (MUFG Auckland) (A/A1/A) revealed plans for a potential inaugural New Zealand dollar denominated, three-year floating-rate note transaction. ANZ, BNZ, MUFG Securities and Morgan Stanley have been mandated as joint lead managers for the possible deal, which may launch as early as the week beginning 25 March.
MUFG Bank Sydney Branch (MUFG Sydney) priced the largest-ever single-tranche deal from a Japanese bank in the Australian market on 5 March. A number of factors contributed to this outcome, sources say, but the void left in operating company (opco) issuance by international banks as they move to a holding company (holdco) structure was a particular driver.
On 4 March, MUFG Bank Sydney Branch (MUFG Sydney) (A/A1) began taking indications of interest for a potential three-year transferrable certificate of deposit, with indicative price guidance of 91 basis points area over swap benchmarks. The deal is expected to launch in the near future with Commonwealth Bank of Australia, MUFG Securities, Morgan Stanley, National Australia Bank and Westpac Institutional Bank as joint bookrunners.
In late January, KangaNews hosted – with MUFG – its annual roundtable discussion with US private placement (USPP) investors and Australian issuers in Miami. Investors remain positive about credits from the Australasian region and see no reason for the record supply pipeline from Australian and New Zealand issuers in the last two years to decrease. In fact, the buy side points to its flexibility to structure deals to attract more issuance from the Antipodes. Issuers, meanwhile, emphasise the positive experiences they have had in issuing USPPs.
The Australian securitisation market is arguably in its best shape since the financial crisis – at least in the sense of the robustness of market infrastructure and diversity of participants on the issuer and investor sides. In November, a record number of delegates gathered in Sydney at Australian Securitisation 2018, the annual conference of the Australian Securitisation Forum, to discuss the state of play – and some of the looming challenges.