On 26 October, Bank of Queensland (BOQ) launched its additional tier-one (AT1) capital transaction, Capital Notes 2. The issuer intends to raise A$200 million (US$142.5 million) with the ability to raise more or less. The notes have an indicative margin of 380-400 basis points area over three-month bank bills, with the final margin to be announced on or before 2 November following a bookbuild.
Woori Bank printed its first COVID-19-recovery Kangaroo sustainability bond on 22 October. Deal sources say earlier successful transactions from Korean-based issuers this year persuaded the bank to come to the Australian dollar market.
On 22 October, Bank of China Australia (BOC Australia) (A3/A-) mandated ANZ, BOC, Commonwealth Bank of Australia and Westpac Institutional Bank for its inaugural Australian dollar denominated, three-year, floating-rate note (FRN) transaction. The deal is expected to launch in the week beginning 26 October.
United Overseas Bank Sydney Branch (UOB Sydney) took advantage of attractive margins caused by the Australian market’s major bank supply gap to achieve the tightest-ever pricing for an Australian dollar five-year financial institution (FI) deal in its 20 October print.