The Australian Prudential Regulation Authority (APRA)’s proposals regarding total loss-absorbing capital (TLAC) for Australian banks was a key factor driving robust demand for Westpac Banking Corporation (Westpac)’s record-breaking senior deal, the issuer says. The announcement may ultimately also support spread tightening for major-bank senior debt going forward.
On 13 November, ME Bank (BBB/Baa1) mandated National Australia Bank, UBS and Westpac Institutional Bank to arrange fixed-income investor meetings regarding a potential Australian dollar denominated, perpetual non-call five-year additional tier-one (AT1) capital transaction. The meetings will be held in Sydney and Melbourne, on 19 and 20 November respectively.
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.
On 12 November, Bank of New Zealand (BNZ) (AA-/A1) launched a new, five-year domestic deal with indicative price guidance of 100-105 basis points over mid swap. The self-led deal is expected to price on 14 November.