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National Australia Bank (NAB) aims to free up regulatory capital for additional renewable-energy lending by funding part of its existing loan portfolio via an external trust vehicle. While investor demand makes renewables particularly suitable for this type of transaction, NAB also believes it could be applied elsewhere in the institutional balance sheet.
The Kangaroo market has traditionally been a diversification play for global borrowers with substantial funding tasks, but Austria’s Hypo Vorarlberg Bank (Hypo VBG) (A/A3) believes the Australian dollar option can be a perfect fit for its profile as a relatively small but innovative issuer.
NAB Trust Services (NR) has mandated National Australia Bank (NAB) to arrange a debt-investor conference call to present the NAB low-carbon shared-portfolio floating-rate notes. These are senior-secured notes with Climate Bonds Initiative certification, which may be issued following the investor call in a transaction with 3.2-year weighted-average life.
AMP Bank disclosed on 29 May that it plans to engage with investors ahead of a possible residential mortgage-backed securities (RMBS) deal. The bank has mandated Deutsche Bank, Macquarie Bank, MUFG, National Australia Bank and Westpac Institutional Bank to explore a funding and capital relief transaction.
Australian Finance Group (AFG) disclosed on 28 May that it plans to engage with investors on its residential mortgage-backed securities (RMBS) programme in the week beginning 4 June. The investor update, which is being arranged by ANZ and National Australia Bank, are the precursor to a potential Australian dollar securitisation transaction.
QIC Shopping Centre Fund (A-) launched a new domestic deal on 28 May, via Commonwealth Bank of Australia and National Australia Bank. The transaction has 5.5-year tenor, minimum volume of A$100 million (US$75.6 million) and is being marketed at 130-135 basis points area over swap. Pricing is expected by 29 May.
The third full week of May saw Zurich Finance Australia price a A$350 million (US$265.1 million) five-year domestic debut and ANZ New Zealand print a NZ$500 million (US$346.7 million) five-year domestic deal. Securitisation deal flow continued, with Bank of Queensland and Pepper Group each completing residential mortgage-backed securities transactions.
Virgin Australia (Virgin) priced the Australian market’s first single-B rated, high-yield public bond on 18 May. Deal sources cite a broad spectrum of investor participation as evidence of growing demand for this product, but they caution that the success of similar deals will, like Virgin’s, be dependent on the credit.
Late in the Sydney day on 24 May, Firstmac began taking indications of interest on its new prime residential mortgage-backed securities transaction, Firstmac Mortgage Funding Trust No.4 Series 2018-2 (Firstmac 2018-2). The forthcoming deal is expected to launch and price during the week beginning 4 June, via lead managers ANZ and J.P. Morgan.