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National Australia Bank printed A$2.7 billion (US$2 billion) across a multi-tranche three- and five-year deal during the second week of May. Meanwhile, Macquarie Group completed the bookbuild for an upsized A$650 million additional tier-one capital notes transaction and Landesbank Baden-Württemberg priced a A$250 million 10-year tier-two EMTN deal.
On 11 May, the Australian Office of Financial Management (AOFM) revealed plans for a syndicated tap of its June 2039 Treasury bond. The transaction will be of “modest size” and is expected to be undertaken in the week commencing 14 May.
On 11 May, Northern Territory Treasury Corporation (NTTC) (Aa2) mandated a capped A$250 million (US$188.2 million) syndicated increase to its April 2028 line. The deal is expected to launch in the “near future”, according to lead managers ANZ and UBS.
On 10 May, QIC Shopping Centre Fund (A-/S&P) revealed plans to meet debt investors in Asia and Australia regarding a possible 5-7 year Australian dollar-denominated transaction. Commonwealth Bank of Australia and National Australia Bank will arrange the meetings, to commence on 14 May.
Macquarie Group completed the bookbuild for its additional tier-one (AT1) capital notes transaction, Macquarie Group Capital Notes 3, on 9 May. At the same time, the issuer revealed the volume has been increased to A$650 million (US$483.4 million) from A$600 million and the margin set at 400 basis points over three-month bank bills, the tight end of the 400-420 basis points over bills guidance.
FlexiGroup became the first issuer in the Australian market to include green subordinated notes in an asset-backed securitisation (ABS) deal with its latest transaction. Deal sources say the expansion of green tranches into the double-A rating space is a continuation of FlexiGroup’s plan to broaden its investor base through the issuance of green product.
Late in the Sydney day on 8 May, Goldman Sachs Group (Goldman Sachs) launched a multi-tranche, five- and 10-year Australian dollar-denominated transaction. The benchmark five-year tranche will come in either or both fixed- and floating-rate formats, with indicative price guidance of 120 basis points area over swap benchmarks. Meanwhile, the minimum A$100 million (A$74.4 million) 10-year tranche is being marketed at 168 basis points area over semi-quarterly swap.
The Australian Office of Financial Management (AOFM)’s gross issuance task for 2018/19 is projected to be A$4 billion (US$3 billion) lower than the updated target for the current financial year, at A$70 billion. The AOFM disclosed the new issuance projection on 9 May, the day after the Australian Commonwealth budget.
Late in the Sydney day on 8 May, European Investment Bank (EIB) (AAA/Aaa/AAA) launched a minimum A$150 million (US$111.8 million) increase to its 2028 Kangaroo climate-awareness bond. The forthcoming deal is being marketed at 43 basis points area over semi-quarterly swap and 45.5 basis points area over Australian Commonwealth government bond. Pricing is expected on the day after launch according to sole lead manager Nomura.
