On 2 June, Canadian Imperial Bank of Commerce Toronto Branch (CIBC Toronto) (A+/Aa2/AA) began taking indications of interest for a new three-year, Australian dollar denominated, senior-unsecured, benchmark transaction. The potential deal, offered in either or both fixed and floating-rate note formats, is being marketed at 140 basis points area over swap benchmarks.
On 2 June, Sumitomo Mitsui Banking Corporation Sydney Branch (SMBC Sydney) (A/A1/A) launched a new Australian dollar denominated, senior-unsecured, multi-tranche transaction. The three-year, floating-rate note (FRN) tranche is being marketed at 100 basis points area over three-month bank bills, while indicative price guidance for the five-year fixed and FRN tranches is 120 basis points area over swap benchmarks.
The Australian dollar market hit a sweet spot for global financial institution (FI) borrowers in the second half of May despite the ongoing absence of the biggest local issuers. Intermediaries say the supply gap has caused a technical pricing squeeze that attracts issuers, while offshore FI pricing remains attractive to real-money investors relative to local names.