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Australian Finance Group (AFG) priced its largest-ever residential mortgage-backed securities (RMBS) deal on 5 April. The issuer intends to leverage what it believes is a unique product proposition in the Australian market, as a broker and lender, to reach a more diverse investor base as its funding requirement rises.
On 9 April, Pepper Group (Pepper) launched its new residential mortgage-backed securities (RMBS) deal, Pepper I-Prime 2019-1. The forthcoming transaction has capped total volume of A$750 million (US$534.5 million) and includes a US dollar denominated tranche. Pricing is expected on or before 11 April.
On 9 April, La Trobe Financial launched its new residential mortgage-backed securities (RMBS) deal, La Trobe Financial Capital Markets Trust 2019-1. The forthcoming transaction has indicative volume of A$500 million (US$356.3 million) and is expected to price on 11 April. Macquarie Bank is the arranger, as well as joint lead manager alongside Commonwealth Bank of Australia, HSBC, National Australia Bank, Natixis and United Overseas Bank.
On 9 April, Inter-American Development Bank (IADB) (AAA/Aaa) launched a new, five-year, minimum A$250 million (US$178.1 million) Kangaroo ‘EYE’ (education, youth and employment) bond deal. The forthcoming transaction has indicative price guidance of 35 basis points area over semi-quarterly swap, equivalent to 51.5 basis points area over Australian Commonwealth government bond.
Volkswagen Financial Services Australia (Volkswagen Australia) mandated Mizuho Securities and TD Securities as joint lead managers for a potential four-year Australian dollar denominated deal on 9 April. The transaction is expected to launch in the near future.
Until 2019, Bluestone Group (Bluestone)’s transactions were largely designed with Australian and New Zealand investors in mind. However, a move to issue in line with Capital Requirement Directives-IV (CRD-IV) regulation means Bluestone’s first residential mortgage-backed securities (RMBS) deal of the new calendar year garnered record volume and brought with it increased offshore investor recognition and participation, issuer and leads say.
On 8 April, Rentenbank (AAA/Aaa/AAA) launched a minimum A$50 million (US$35.5 million) increase to its April 2028 Kangaroo bond. The forthcoming transaction has indicative price guidance of 41 basis points area over semi-quarterly swap, equivalent to 49.5 basis points area over Australian Commonwealth government bond. Nomura is the sole lead manager.
BWP Trust issued in the Australian domestic market for a third time on 4 April, printing a seven-year deal that was heavily oversubscribed. There have been other pure corporate domestic deals at this maturity in 2019 and even though BWP Trust’s volume outcome was modest in comparison, deal sources insist other factors, including price, were as noteworthy.
On 8 April, Toyota Finance New Zealand (Toyota New Zealand) (AA-/Aa3) revealed plans for a new five-year domestic wholesale deal, to be led by ANZ.
The first week of April was highlighted by residential mortgage-backed securities deal flow, with Australian Finance Group's A$500 million (US$356.1 million) and Bluestone Group's A$400 million deals. Meanwhile, Edith Cowan University priced its debut transaction and Asian Development Bank tapped two Kangaroo lines and priced a new Kauri.
