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On 21 October, Macquarie University (Aa2) mandated HSBC and National Australia Bank to arrange a series of investor meetings in Australia and Japan in the week beginning 28 October regarding a potential 10-15-year, Australian dollar denominated sustainability bond.
On 21 October, Think Tank Group (Think Tank) launched its new commercial mortgage-backed securities (CMBS) deal, Think Tank Series 2019-1. The deal has total indicative volume of A$350 million (US$239.8 million), with pricing expected on 25 October. Commonwealth Bank of Australia is arranger and joint lead manager alongside Deutsche Bank and Westpac Institutional Bank.
On 21 October, Australian Finance Group (AFG) launched its residential mortgage-backed securities (RMBS) deal, AFG 2019-2 Trust. The deal has total indicative volume of A$350 million (US$239.8 million), with the potential to upsize to A$500 million, and is expected to price on 25 October. ANZ is arranger and joint lead manager alongside National Australia Bank and United Overseas Bank.
On 21 October, United Energy Distribution (UED) (A- by S&P) launched a new seven-year Australian dollar denominated benchmark transaction, offered in either or both fixed- and floating-rate format. Indicative price guidance for the forthcoming deal, which is expected to price on the day after launch, is 120 basis points area over swap benchmarks. ANZ, Commonwealth Bank of Australia and HSBC are leading.
Bank of Communications Sydney Branch (BoCom Sydney) (A-/A2/A) revealed plans for a new three-year, Australian dollar denominated benchmark transaction on 21 October. The deal is being marketed at 92 basis points area over three-month bank bills. ANZ, Bank of China, Commonwealth Bank of Australia and National Australia Bank are leading.
Bank of Queensland (BOQ) (BBB+/A3/A-) revealed plans on 21 October for a five-year, senior-unsecured, benchmark domestic transaction. ANZ, National Australia Bank and UBS have been mandated to arrange a debt investor call on 22 October, with a deal expected to launch in the near future.
On 21 October, Lonsdale Finance (Baa2/BBB), the financing arm of Port of Melbourne, mandated ANZ, Commonwealth Bank of Australia and National Australia Bank to arrange a series of investor meetings in Australia and Asia in the week beginning 28 October regarding a potential seven-year, Australian dollar denominated transaction. Bank of China is a passive lead manager on the transaction.
The European Central Bank (ECB) confirmed another round of QE on 12 September, locking in what markets have been anticipating throughout 2019. The European political, economic and central-bank landscape is shifting but unconventional monetary policy seems set for the foreseeable future – despite questions about its efficacy in the real economy.
Japanese investor participation has supported the long-end Kangaroo market for supranational, sovereign and agency issuers in recent years. Deal flow has been more focused on mid-curve issuance in 2019. However, Bart van Dooren, head of funding and investor relations at BNG Bank (BNG) in The Hague, says long-end opportunities persist and bespoke private placements (PPs) can still be compelling opportunities for Japanese investors.
Japanese investors have come to represent a significant portion of Australian major-bank transaction books across currencies and products. Westpac Banking Corporation (Westpac)’s Sydney-based head of group funding, Alex Bischoff, discusses the bank’s evolving relationship with this investor base.