On 7 July, Firstmac launched its residential mortgage-backed securities (RMBS) deal, Firstmac 2-2020. The forthcoming deal has indicative total volume of A$1 billion (US$700 million), with potential to upsize to A$1.3 billion, and is expected to price on 9 July. National Australia Bank is arranger for the deal, and joint lead manager alongside ANZ, J.P. Morgan, Standard Chartered and Westpac Institutional Bank.
On 7 July, S&P Global Ratings assigned preliminary ratings to Australian Financial Group (AFG)'s proposed residential mortgage-backed securities (RMBS) deal, AFG Series 2020-1. The deal has total indicative volume of A$350 million (US$244.2 million). ANZ and National Australia Bank, who is the arranger, have been mandated to engage investors.
On 7 July, Societe Generale Sydney Branch (SocGen Sydney) (A/A1/A-) began taking indications of interest for its potential three-year, Australian dollar denominated, senior-preferred, floating-rate note, benchmark transaction. Initial price thoughts for the deal is 105 basis points area over three-month bank bills. ANZ, Mizuho Securities, SocGen and Westpac Institutional Bank are leading.
On 7 July, DBS Group Holdings (Aa2/AA-) began taking indications of interest for a new three-year, Kangaroo, senior-unsecured transaction, offered in either or both fixed and floating-rate note format. The potential deal is being marketed at 75 basis points area over swap benchmarks.
On 6 July, Resimac added Commonwealth Bank of Australia, Deutsche Bank and Wells Fargo Securities to its joint lead manager panel for its potential non-conforming residential mortgage-backed securities (RMBS) deal from its Bastille programme.
On 6 July, Seek (NR) launched a minimum A$100 million (US$69.5 million) increase to its June 2026 subordinated notes. Indicative price guidance for the deal, which is expected to price on the day after launch, is 550 basis points area over three-month bank bills. HSBC, MUFG Securities and Westpac Institutional Bank are leading.
On 6 July, Societe Generale Sydney Branch (SocGen Sydney) (A/A1/A-) mandated ANZ, Mizuho Securities, SocGen and Westpac Institutional Bank to arrange an investor call, to occur on the same day, regarding a potential new three-year, Australian dollar denominated, senior-preferred, floating-rate note benchmark transaction.
The Australian dollar corporate debt market finished the first half of 2020 with a flurry of deals and greatly improved sentiment. Corporate originators do not expect the floodgates of issuance to open in the second half but say conditions should be supportive for active issuers.
The Australian Office of Financial Management (AOFM) is purchasing structured finance securities through the structured finance support fund (SFSF) to promote the smooth functioning of the Australian securitisation market. KangaNews will provide subscribers with easy access to SFSF investments in primary, secondary and warehouse facilities as information is made available by the AOFM.
The week bridging 2020 and 2021 financial years was highlighted in Australian markets by securitisation transactions from Bluestone Group and Metro Finance. Meanwhile, Australian Office of Financial Management gave guidance on its 2020/21 financial year borrowing.
Increased issuance from the AOFM – including targeting maturities of 3-5 and 10-12 years – and the Reserve Bank of Australia (RBA)’s intervention in the Australian sovereign bond market have accelerated Australian Securities Exchange (ASX) thinking about a new contract in its bond futures suite. The exchange is planning to introduce a new five-year contract by the end of the year.