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On 17 April, Oversea-Chinese Banking Corporation Sydney Branch (OCBC Sydney) (AA-/Aa1/AA-) launched a three-year senior-unsecured domestic benchmark floating-rate note (FRN) transaction. The forthcoming deal is being marketed at 73 basis points area over three-month bank bills. Pricing is expected on the day of launch, according to lead managers ANZ, Commonwealth Bank of Australia, OCBC, UBS and Westpac Institutional Bank.
The majority of the heavy lifting spun out of the radical reshaping of the banking sector following the financial crisis may have played out, but conditions continue to shift. The KangaNews Debt Capital Markets Summit brought a pair of international bank funders together to share insights into the global landscape.
A prolonged period of arguably the best global capital-market conditions for a decade appears to be coming to an end as volatility returned early in 2018. Speakers at the KangaNews Debt Capital Markets Summit debated where markets, economies and societies are now – and the future direction.
Sustainability in the debt market is already too big a subject to ignore. To close the first-ever full-day KangaNews Sustainable Debt Summit, which took place in Sydney in March, a panel of market specialists discussed the purpose and prospects of their sector.
Many market participants believe quantitative tapering (QT) in Europe is edging closer. The KangaNews Debt Capital Markets Summit gathered a panel of experts to discuss impacts for global markets – though the consensus is that the pace of the reversal is likely to be slow and steady.
On 16 April, Brisbane Airport Corporation (Brisbane Airport) (BBB/Baa2) announced plans to hold a conference call with fixed-income investors regarding a possible Australian dollar-denominated seven-year senior-secured deal. The call will be held on 17 April and is being arranged by ANZ and National Australia Bank.
On 16 April, Hypo Vorarlberg Bank (Hypo V) (A/A3) revealed plans to meet with Australian dollar debt investors regarding a possible Kangaroo transaction. The meetings, to be arranged by Deutsche Bank and TD Securities, will commence in Australia and Asia on 21 May.
Industrial and Commercial Bank of China Sydney Branch (ICBC Sydney) (A/A1/A) launched a new, three-year senior-unsecured benchmark domestic floating-rate note (FRN) transaction on 16 April. Indicative price guidance for the forthcoming deal is 105 basis points area over three-month bank bills. Pricing is expected on or before 17 April, according to lead managers ANZ, ICBC, National Australia Bank, UBS and Westpac Institutional Bank.
On 16 April, Suncorp-Metway (Suncorp) launched its residential mortgage-backed securities (RMBS) transaction, Apollo 2018-1. The forthcoming deal has indicative total volume of A$750 million (US$582.8 million) and is expected to price on or around 19 April.
In the second week of April, Bank of China's Sydney and New Zealand branches priced A$800 million (US$621.4 million) three-year and NZ$300 million (US$221.4 million) three- and five-year deal. Meanwhile, Western Australian Treasury Corporation printed A$1.3 billion in a 10-year deal and Caltex Australia priced its first debt capital markets transaction since 2012, with a A$300 million seven-year deal.
Caltex Australia (Caltex) says its business has undergone a substantial transition and the Australian corporate bond market has developed significantly since its previous debt-market foray, in 2012. The successful execution of Caltex’s capital market return is testament to both, the issuer and its lead managers claim.