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On 10 May, NWB Bank (AAA/Aaa) launched a minimum A$15 million (US$10.5 million) tap of its existing May 2029 Kangaroo bond. The forthcoming transaction has indicative price guidance of 55 basis points area over semi-quarterly swap. The transaction is expected to price on the day of launch, according to sole lead manager Daiwa Capital Markets.
The Australian asset-management industry continues to grow but it has yet to produce a consistently diverse local credit market. Allocations to income-generating product will likely increase over time, though market dynamics suggest the most liquid and highest yielding ends of the market may have the healthiest prospects.
On 10 May, Vector (BBB/Baa1) revealed an indicative margin of 165-175 basis points over mid-swap for its forthcoming NZ$200-250 million (US$131.9-164.9 million) six-year deal. The transaction is due to open on 13 May, with the final margin and interest rate to be set on 16 May. ANZ, Deutsche Craigs, Forsyth Barr and Westpac Banking Corporation New Zealand Branch are joint lead managers.
On 9 May, expected ratings were assigned by S&P Global Ratings and Moody's Investors Service to AMP Bank's residential mortgage-backed securities (RMBS) deal, Progress 2019-1 Trust. The deal has indicative total volume of A$750 million (US$523.1 million). ANZ, Commonwealth Bank of Australia, Deutsche Bank, MUFG Securities and National Australia Bank were mandated for the deal on 3 May.
On 9 May, NWB Bank (NWB) (AAA/Aaa) launched a minimum A$15 million (US$10.5 million) increase to its May 2029 Kangaroo bond. The initial price guidance is 54 basis points area over semi-quarterly swap, equivalent to 66.75 basis points area over Australian Commonwealth government bond. Nomura is the sole lead manager.
The Australian Sustainable Finance Initiative (ASFI) aims to “set out a roadmap for realigning the finance sector to support greater social, environmental and economic outcomes”. Following its launch at the end of March, KangaNews spoke to seven member institutions of the ASFI steering committee about the initiative’s goals and how they will be measured.
Citibank (A+/Aa3/A+) launched a new, three-year, senior-unsecured benchmark global Australian dollar deal, to come in either or both fixed- and floating-rate formats, on 9 May. Indicative price guidance for the forthcoming transaction is 75 basis points area over swap benchmarks. The deal is expected to price on the day after launch, according to joint bookrunners ANZ, Commonwealth Bank of Australia, Citi, National Australia Bank and Westpac Institutional Bank.
On 9 May, National Australia Bank (NAB) (AA-/Aa3/AA-) launched a self-led 10-year non-call five-year, tier-two domestic transaction. The forthcoming deal will come in either or both fixed- and floating-rate formats and has indicative price guidance of 215-225 basis points area over swap benchmarks. The deal is expected to be rated BBB/Baa1/A+ and to price on the day of launch.