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On 11 August, Bank of China Sydney Branch (BOC Sydney) (A/A1/A) began taking indications of interest for a potential three-year, Australian dollar denominated, senior-unsecured, floating-rate note, benchmark transaction. The deal is being marketed at 87 basis points area over three-month bank bills. Bank of China, Macquarie Bank, National Australia Bank and Westpac Institutional Bank are leading.
On 11 August, Queensland Treasury Corporation (QTC) (AA+/Aa1/AA) launched a benchmark syndicated tap of its August 2031 line, via ANZ, Commonwealth Bank of Australia and UBS. The forthcoming deal has indicative price guidance of 64-67 basis points over EFP and 59-62 basis points area over Australian Commonwealth government bond. Pricing is expected on the day after launch.
On 10 August, Pepper Group launched its residential mortgage-backed securities (RMBS) deal, PRS 27. The deal has indicative total volume of A$500 million (US$358 million), with potential to upsize, and is expected to price on or before 12 August. Commonwealth Bank of Australia is arranger for the deal, and joint lead manager alongside National Australia Bank, Macquarie Bank and Westpac Institutional Bank.
On 10 August, Investore Property revealed plans for a new seven-year, New Zealand dollar denominated, senior-unsecured deal to be offered to institutional and retail investors. The transaction is expected to launch in the week beginning 17 August. Westpac Banking Corporation New Zealand Branch is arranger and joint lead manager alongside ANZ, Forsyth Barr and Jarden.
Deal activity slowed in Australasian markets in the first full week of August, with the highlight being South Australian Government Financing Authority's A$1 billion (US$721.4 million) syndicated May 2032 increase. Meanwhile, the Reserve Bank of Australia restarted its asset purchase programme.
On 6 August, AMP Capital Wholesale Office Fund (AWOF) (A- by S&P) mandated Commonwealth Bank of Australia and Westpac Institutional Bank to arrange a fixed-income investor call on 11 August, regarding a potential Australian dollar denominated deal, offered in either seven- or 10-year tenor.
The Reserve Bank of Australia (RBA)’s first purchase of Australian Commonwealth Government Bonds (ACGBs) since May has opened a debate on the ongoing purpose of asset purchases. Three-year sovereign-bond yield is close to the RBA’s 0.25 per cent target but analysts still expect further near-term intervention.
On 6 August, Pepper Group began taking indications of interest for its residential mortgage-backed securities (RMBS) deal, PRS 27. The deal has indicative total volume of A$500 million (US$360.1 million) with potential to upsize and is expected to launch in the week beginning 10 August. Commonwealth Bank of Australia is arranger for the deal, and joint lead manager alongside National Australia Bank, Macquarie Bank and Westpac Institutional Bank.