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BNG Bank (AAA/Aaa/AAA) launched a minimum A$20 million (US$13.7 million) increase to its July 2028 Kangaroo bond on 18 September. Indicative price guidance for the forthcoming transaction, which is expected to price on the day of launch, is 51 basis points area over semi-quarterly swap, equivalent to 50.6 basis points area over Australian Commonwealth government bond. RBC Capital Markets is leading.
On 18 September, Australian Finance Group (AFG) mandated ANZ, National Australia Bank and United Overseas Bank to arrange an offshore and domestic roadshow in the weeks beginning 30 September and 14 October, respectively, regarding a potential Australian dollar residential mortgage-backed securities (RMBS) deal.
On 18 September, Bluestone Group (Bluestone) began taking indications of interest for its new residential mortgage-backed securities (RMBS) deal, Sapphire XXII Series 2019-2 Trust. Indicative total volume is A$450 million (US$308.4 million), with the launch expected in the week beginning 23 September. National Australia Bank is arranger.
On 18 September, Korea Southern Power (Aa2/AA-) mandated BNP Paribas, HSBC and Nomura to arrange a series of investor meetings in Asia and Australia in the week beginning 26 September, regarding a potential mid-curve Kangaroo transaction.
On 18 September, Pacific National (BBB-/BBB-) launched a new 10-year, Australian dollar denominated benchmark transaction, offered in either or both fixed- and floating-rate format. The deal is being marketed at 260 basis points area over swap benchmarks, according to joint lead managers ANZ, Commonwealth Bank of Australia, MUFG Securities and National Australia Bank.
On 17 September, Volkswagen Financial Services Australia (Volkswagen Australia) (BBB+/A3) mandated Bank of America Merrill Lynch and RBC Capital Markets to engage Australian dollar asset-backed securities (ABS) investors regarding a potential transaction under its Driver Australia ABS programme.
Spark Finance (Spark) returned to the Australian dollar market on 11 September with its first deal since its inaugural Kangaroo in October 2017. Deal sources say there is latent demand in Australian dollars resulting from an undersupply of corporate credit, while the lower-for-longer interest rate environment is pushing demand further out on the curve.