Banque Fédérative Du Crédit Mutuel (BFCM) (A/Aa3/A+) launched a new, five-year, senior-preferred Kangaroo deal on 15 October. The forthcoming deal will come in either or both fixed- and floating-rate formats and is being marketed at 115 basis points area over swap benchmarks.
On 15 October, Bank of Communications Sydney Branch (BoCom Sydney) (A-/A2/A) revealed plans for a new, Australian dollar denominated three-year domestic deal. Initial price guidance for the transaction is 105-107 basis points area over three-month bank bills.
The eighth KangaNews-Westpac Corporate Debt Summit, held in Sydney on 12 September, drew a record crowd once again. As well as providing insights from the heart of the banking, sustainability and economics sectors, there were in-depth discussions around the role of the Australian credit market relative to its global peers and the new open-banking regime, as well as the annual C-suite update.
Australia has bucked the global trend to move away from interbank offered rates (IBORs) that the market benchmarks off and on which short- and long-term funding is based. Active trading in bank bills makes the bank-bill swap rate (BBSW) a viable base rate for the long term – especially now the Australian Securities Exchange (ASX) has radically overhauled the BBSW calculation methodology as a cooperative effort with market participants.