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Credit Union Australia (CUA) (BBB/Baa1) launched a new, indicative A$200 million (US$142.7 million) three-year floating-rate note (FRN) transaction on 19 February. The forthcoming deal is being marketed at 128 basis points area over three-month bank bills, with pricing expected on the day of launch. ANZ and National Australia Bank are joint lead managers.
On 19 February, Pepper Group (Pepper) launched its capped A$750 million (US$534.6 million) equivalent residential mortgage-backed securities (RMBS) transaction, PRS 23. The deal includes a US dollar denominated tranche as well as a euro denominated tranche backed by green mortgages. Pricing is expected on or around 21 February.
Broad investor participation characterised Westpac Banking Corporation (Westpac)’s first residential mortgage-backed securities (RMBS) transaction since 2015. The issuer attributes robust demand to structural features including a funding-only structure, a date-based call and a Hong Kong listing – and envisages a more regular RMBS issuance schedule going forward.
On 19 February, Credit Union Australia (CUA) (BBB/Baa1) revealed plans for a possible three-year Australian dollar denominated floating-rate note (FRN) transaction. ANZ and National Australia Bank have been mandated as joint lead managers for the potential deal.
On 18 February, Contact Energy (Contact) (BBB by S&P) launched a 5.5-year green bond, for up to NZ$100 million (US$68.7 million), to institutional and New Zealand retail investors. The forthcoming deal has an indicative margin of 145-155 basis points over mid-swap, with the final margin to be set following a bookbuild on 22 February.
On 18 February, Western Australian Treasury Corporation (WATC) (AA+/Aa2) launched a new, July 2029 benchmark transaction by syndication. The forthcoming deal is being marketed at 62.5-65.5 basis points area over the 10-year futures contract, equal to 62.5-65.5 basis points area over Australian Commonwealth government bond.
On 18 February, ASB Bank (AA-/A1/AA-) launched a new, three-year floating-rate note (FRN) domestic transaction for New Zealand-based institutional investors. The forthcoming deal has indicative price guidance of 83 basis points over three-month bank bills with pricing expected on the day after launch. Commonwealth Bank of Australia is leading.
It was a busy second week of February in Australasian markets, with deals priced across sectors and jurisdictions. Highlights included Australian market debuts from Canadian Imperial Bank of Commerce Australia Branch and General Motors Financial Company. Meanwhile Westpac priced a jumbo A$3 billion (US$2.1 billion) residential mortgage-backed securities deal, its first since 2015.
A debut Kangaroo transaction from General Motors Financial Company (GM) has kick-started Australian corporate issuance in 2019. Deal sources say the tenor and volume achieved were a good result for this segment of the corporate market and lay a good platform for an issuer that has also established a domestic subsidiary.
On 15 February, National Australia Bank (NAB) revealed after a bookbuild that its additional tier-one (AT1) capital deal, NAB Capital Notes 3, will increase to at least A$1.65 billion (US$1.2 billion) having launched at A$750 million. Furthermore, the margin has been set at 400 basis points over three-month bank bills, the low end of the indicative range.
Exclusive information from the KangaNews deal database covering capital-markets transactions by high-grade issuers profiled in the KangaNews High-Grade Yearbook 2019.