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On 26 November, AMP revealed plans for an indicative A$200 million (US$135.5 million) additional tier-one (AT1) capital transaction. The deal is being marketed in the range of 450-470 basis points over three-month bank bills, with the final margin and interest rate to be determined following a bookbuild, expected on 3 December.
On 26 November, Oversea-Chinese Banking Corporation Sydney Branch (OCBC Sydney) (AA-/Aa1/AA-) launched a three-year, Australian dollar denominated, floating-rate note, benchmark green-bond transaction. The forthcoming deal is being marketed at 65 basis points area over three-month bank bills. Pricing is expected on the day of launch, according to ANZ, BNP Paribas, Commonwealth Bank of Australia, OCBC and Westpac Institutional Bank.
On 26 November, Bank Australia (BBB/Baa1) launched a A$100 million (US$67.8 million) three-year, floating-rate note, sustainability bond transaction. Indicative price guidance for the forthcoming deal, which is expected to price on the day of launch, is 90-93 basis points area over three-month bank bills. ANZ and National Australia Bank are leading.
As a growing group of borrowers become seasoned issuers in the green, social and sustainability (GSS) bond market, participants’ attention is increasingly turning to ongoing reporting on use of proceeds and sustainable assets. New South Wales Treasury Corporation (TCorp) took a lead position on reporting in October and followed a few weeks later with a second GSS bond.
On 25 November, Oversea-Chinese Banking Corporation Sydney Branch (OCBC Sydney) (AA-/Aa1/AA-) mandated ANZ, BNP Paribas, Commonwealth Bank of Australia, OCBC and Westpac Institutional Bank to arrange an investor call regarding a potential three-year, Australian dollar denominated, floating-rate note green bond transaction.
On 25 November, ING Bank Australia (ING Australia) launched its residential mortgage-backed securities (RMBS) deal, IDOL 2019-1 Trust. The transaction has a total volume of A$750 million (US$509.2 million), with the potential to upsize. Pricing is expected on or before 29 November, according to joint lead managers ANZ, ING, Macquarie Bank, Standard Chartered Bank and Westpac Institutional Bank.
On 25 November, Beyond Bank launched its residential mortgage-backed securities (RMBS) deal, Barton Series 2019-1. The deal has a capped total volume of A$500 million (US$339.5 million), with pricing expected on or before 28 November. ANZ and Westpac Institutional Bank are leading.
On 25 November, Bank Australia (BBB/Baa1) began taking indications of interest for its new three-year, Australian dollar denominated, floating-rate note sustainability bond. The deal is being marketed at 90-93 basis points area over three-month bank bills. Launch is expected in the near future, according to ANZ and National Australia Bank.
On 25 November, NAOS Small Cap Opportunities (NAOS SCO) launched a A$30 million (US$20.4 million), five-year deal. The forthcoming deal, which is expected to price on or before 28 November, is being marketed with a fixed rate of 495 basis points area. Acacia Partners is leading.
Alessandro Pagani, head of the mortgage and structured finance team at Loomis Sayles in Boston, visited Australia in November to discuss the global securitisation market with local investors and to get an update on Australian structured finance. KangaNews sat down with Pagani to hear about the securitisation asset class in a challenging investment environment, the appeal of Australian assets and the challenges of developing a broader collateral base for this market.
The launch of Commonwealth Bank of Australia's inaugural A$1.5 billion (US$1 billion) Australian Overnight Index Average (AONIA)-linked, residential mortgage-backed securities transaction highlighted the third full week of November, while deals from David Jones Finance, Qantas Airways and NextEra Energy Capital Holdings lit up the corporate space.