On 23 July, Suncorp-Metway (Suncorp) (A+/A1/A+) launched a new five-year, Australian dollar denominated benchmark deal, offered in either or both fixed- and floating-rate formats. Indicative price guidance for the transaction, which is expected to price on day of launch, is 80 basis points area over swap benchmarks. ANZ, Commonwealth Bank of Australia, National Australia Bank and Westpac Institutional Bank are leading.
Westpac Banking Corporation (Westpac) was the first Australian major bank to print a tier-two deal following the Australian Prudential Regulation Authority (APRA)’s final total loss-absorbing capacity (TLAC) requirement ruling. The issuer says a lower-than-expected incremental tier-two requirement makes the task more manageable and current conditions provided a tailwind, but longer-term questions are yet to be resolved.
On 22 July, Westpac New Zealand (Westpac NZ) (AA-/A1/AA-) launched a new, five-year, senior-unsecured domestic deal with indicative priced guidance of 85-90 basis points over mid-swap. The self-led transaction is for up to NZ$100 million (US$67.6 million) with the ability to take oversubscriptions. Pricing is expected on or before 24 July.
On 17 July, United Overseas Bank Sydney Branch (UOB Sydney) printed the domestic market’s first repo-eligible deal since Australian Prudential Regulation Authority (APRA)’s announcement on total loss-absorbing capacity on 9 July. While much focus has been on financial institution (FI) regulatory-capital transactions in recent weeks, senior-unsecured pricing has tightened to record lows.