Latest News
Late in the Sydney day on 3 July, Columbus Capital began taking indications of interest for its residential mortgage-backed securities (RMBS) transaction, Triton 2018-1. The deal has an indicative total volume equivalent to A$506.4 million (US$374 million), including Class A1-US notes which are denominated in US dollars.
Deal flow in the Australian market, particularly for domestic senior transactions, virtually ground to a halt in June. A confluence of factors contributed to the lack of supply, dealers say, including issuers having prefunded ahead of expected turbulence, relative value and geopolitical tension. But intermediaries insist the market remains open for business.
On 3 July, WEL Networks revealed an indicative margin of 230-250 basis points over swap for its forthcoming five-year, unsecured subordinated transaction. A minimum interest rate of 4.9 per cent was also revealed. The announcement follows the launch of the NZ$125-150 million (US$83.8-100.5 million) deal on 2 July. The final margin and interest rate will be determined following a bookbuild, scheduled for 9 July.
Asian Development Bank (ADB) (AAA/Aaa/AAA) launched a minimum A$150 million (US$110.1 million) 11-year Kangaroo bond on 3 July. The forthcoming deal is being marketed at 41 basis points area over semi-quarterly swap and 54.25 basis points area over Australian Commonwealth government bond. Pricing is expected on the day after launch, according to lead managers Mizuho Securities and TD Securities.
On 3 July, NEXTDC launched its four-year senior-unsecured notes transaction, Notes IV. NEXTDC is aiming to raise A$250 million (US$183.4 million), with the ability to take oversubscriptions. Full terms of the transaction will be lodged with the ASX once pricing is finalised.
On 3 July, South Australian Government Financing Authority (SAFA) (AA/Aa1) launched a new, maximum A$1 billion (US$733.8 million) May 2028 syndicated bond transaction. Indicative price guidance for the forthcoming deal is 51-53 basis points area over the 10-year futures contract, equivalent to 52.25-54.25 basis points area over Australian Commonwealth government bond.
On 2 July, South Australian Government Financing Authority (SAFA) (AA/Aa1) revealed its intention to issue a new May 2028 select line for up to A$1 billion (US$739.9 million) via syndication in the “near future”. Bank of America Merrill Lynch, Deutsche Bank, National Australia Bank and Nomura have been mandated as joint lead managers.
On 29 June, WEL Networks launched a NZ$125-150 million (US$84.7-101.7 million) five-year domestic transaction. Indicative price guidance will be determined on or around 3 July, with the final margin to be announced following a bookbuild, scheduled for 9 July. The offer will open on 10 July and close on 27 July.
Teachers Mutual Bank priced the only public Australian dollar deal in the final week of June, with a A$200 million (US$147.6 million) three-year floating-rate note transaction. Axsesstoday launched a five-year simple corporate bond deal, with a bookbuild scheduled for completion on 3 July. In New Zealand, Genesis Energy completed the bookbuild for its NZ$200-240 million (US$135.4-162.5 million) subordinated capital-bond transaction.
On 29 June, Pepper Group (Pepper) revealed plans to meet US investors in the week commencing 9 July and Australian investors in the week commencing 16 July, regarding a possible nonconforming residential mortgage-backed securities (RMBS) transaction. The potential deal will include Australian dollar and US dollar tranches across 144A and Reg S formats.
On 27 June, United Overseas Bank (UOB) (AA-/Aa1/AA-) revealed plans to meet fixed-income investors in Australia. The meetings, to be arranged by ANZ and National Australia Bank, will commence 3 July.