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On 21 May, Svenska Handelsbanken (AA-/Aa2/AA) launched a new, three-year, senior-unsecured Kangaroo deal in either or both fixed- and floating-rate formats. The forthcoming transaction has indicative price guidance of 72 basis points area over swap benchmarks. Pricing is expected on or before 22 May, according to joint lead managers HSBC, National Australia Bank, UBS and Westpac Institutional Bank.
On 20 May, KfW Bankengruppe (KfW) (AAA/Aaa) launched a minimum A$150 million (US$103.6 million) tap of its February 2025 Kangaroo bond. The forthcoming deal is being marketed at 39 basis points area over semi-quarterly swap and 46.5 basis points area over Australian Commonwealth government bond. Pricing is expected on 21 May according to lead manager Nomura.
Crédit Agricole (A+/A1/A+, with an expected issue rating of BBB+/Baa2/A) mandated an Australian dollar denominated, tier-two transaction with 15-year non-call 10 (15NC10) maturity on 20 May. Crédit Agricole, National Australia Bank and Nomura are the leads.
On 20 May, Liberty Financial (Liberty) launched its residential mortgage-backed securities (RMBS) deal, Liberty Series 2019-2. Indicative total volume of the forthcoming transaction is A$500 million (US$346.3 million), with the potential to upsize. Pricing is expected on or before 24 May. Westpac Institutional Bank is the arranger for the transaction and joint lead manager alongside Bank of America Merrill Lynch, Commonwealth Bank of Australia, Deutsche Bank and National Australia Bank.
The US private placement (USPP) market has continued to attract double the issuance volume of the Australian domestic market for corporate borrowers despite less competitive US dollar funding costs for Australian corporates during 2019. Sources say USPP pricing is back to a historic low and shows little sign of weakening.
Mortgage House priced its inaugural A$300 million (US$206.5 million) residential mortgage-backed securities (RMBS) deal during the second week of May. Meanwhile, Pepper Group printed A$750 million in its latest RMBS, PRS 24, and World Bank tapped its February 2024 Kangaroo line by A$800 million.
The Australian Securities and Investments Commission (ASIC) and Reserve Bank of Australia (RBA) have co-opted the heads of two of the world’s most significant financial regulators as they endeavour to heighten local market engagement with the process of transition away from global interbank offered rates (IBORs).
Mortgage House priced its first-ever public residential mortgage-backed securities (RMBS) deal on 16 May, as it seeks to demonstrate its ability to source funding from outside its warehouse facilities. The issuer is confident that its origination offering stands out amid an increasingly crowded nonbank field.
On 15 May, World Bank priced a A$800 million (US$553 million) increase to its February 2024 Kangaroo bond, bringing the total outstanding in the line to A$2.1 billion. The tap was led by Deutsche Bank, Nomura and TD Securities and is the largest Australian dollar deal from a supranational, sovereign and agency (SSA) borrower since World Bank introduced the line in February with a A$1.3 billion deal.