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On 15 October, Liberty Financial mandated BofA Securities, Commonwealth Bank of Australia, Deutsche Bank, National Australia Bank and Westpac Institutional Bank for a potential residential mortgage-backed securities (RMBS) deal, Liberty Series 2020-3. The transaction may launch in the week beginning 26 October.
On 14 October, Pepper Group began taking indications of interest for its residential mortgage-backed securities (RMBS) deal, Pepper I-Prime 2020-1. Total indicative volume for the transaction is A$750 million, with the capacity to be upsized, and is expected to launch in the week beginning 19 October. National Australia Bank is arranger and joint lead manager alongside Commonwealth Bank of Australia, Standard Chartered and Westpac Institutional Bank.
On 14 October, Woori Bank (A/A1) launched its inaugural Kangaroo, three-year, COVID-19-recovery sustainability-bond transaction, offered in either or both fixed- and floating-rate note formats. The forthcoming deal is being marketed at 80 basis points area over swap benchmarks, according to lead managers MUFG Securities, Nomura and Westpac Institutional Bank.
On 14 October, flexigroup began taking indications of interest for its new asset-backed securities (ABS) deal, Flexi ABS Trust 2020-1. Total capped volume for the transaction is A$250 million (US$179.1 million) and is expected to launch in the week beginning 19 October. Commonwealth Bank of Australia is arranger and joint lead manager alongside National Australia Bank.
Mizuho Bank Sydney Branch (Mizuho Sydney) (A/A1) launched a new three-year, Australian dollar denominated transaction on 14 October, offered in either or both fixed- and floating-rate note formats. Indicative price guidance for the forthcoming deal, which is expected to price on the day of launch, is 60 basis points area over swap benchmarks.
On 14 October, Glencore Australia Holdings (BBB+/Baa1) mandated Commonwealth Bank of Australia, Mizuho Securities and National Australia Bank to arrange a group investor call on 15 October regarding a potential seven-year or longer, Australian dollar denominated, senior-secured transaction.
Most analysts anticipated the Australian housing market would take a hammering from COVID-19. More than six months into the crisis, house prices have held up better than expected and experience suggests the sector will be among the leaders of a future economic recovery.
Every year, KangaNews hosts Australia’s leading nonbank lenders at a sector roundtable discussion – supported since 2019 by Natixis. In keeping with the unique circumstances of 2020, this year’s roundtable was conducted via videoconference. While market conditions have changed dramatically in the past 12 months, the sector is able to tell the same story of solid funding foundations and sound credit quality.
United Overseas Bank Sydney Branch (UOB Sydney) says it took a bespoke approach to execution in its recent Australian dollar deal by capturing cornerstone bids and then opening the book for a wider trade. The approach resulted in a post-financial-crisis pricing record for any bank issuer including domestic names.
Avanti Finance printed New Zealand’s second residential mortgage-backed securities (RMBS) deal in just over a month, on 9 October – a feat that seemed highly improbable earlier in the year. Sound origination standards and technical tailwinds have caused interest in the asset class to jump, the issuer says.