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Domestic covered-bond issuance from Australia’s major banks has been scarce since 2012, with just one deal in each of the last three years. With global market conditions expected to be less benign in the immediate future, National Australia Bank (NAB) says its recent covered bond transaction was the right move.
The Australian responsible-investment market has taken another evolutionary step with the pricing of the inaugural Kangaroo social bond by International Finance Corporation (IFC). The issuer says the deal presented challenges, but IFC is confident the product will grow. Meanwhile, intermediaries say the transaction displays strong Australian investor appetite for the product.
Pioneer Credit launched an indicative A$25 million (US$19.6 million) four-year subordinated floating-rate note (FRN) on 8 March. The forthcoming deal is being marketed at 525 basis points area over three-month bank bills. Pricing is expected on or before March 16, according to lead managers Acacia Partners and Westpac Institutional Bank.
On 8 March, Mercedes-Benz Australia (Mercedes-Benz) (A/A2/A-) mandated a three-year Australian dollar denominated EMTN transaction, via TD Securities and Westpac Institutional Bank. The forthcoming deal is being marketed at 58 basis points area over swap benchmarks.
On 8 March, People’s Choice Credit Union (People’s Choice) revealed plans for a potential Australian dollar denominated residential mortgage-backed securities (RMBS) transaction from its Light Trust programme. ANZ, National Australia Bank and Westpac Institutional Bank have been mandated to engage with investors regarding the possible capital relief transaction.
On 8 March, Suncorp-Metway (Suncorp) revealed plans to engage with investors regarding a possible residential mortgage-backed securities (RMBS) transaction from its Apollo programme. HSBC, Macquarie Bank, National Australia Bank and Westpac Institutional Bank will arrange the meetings.
On 8 March, the New Zealand Debt Management Office (NZDMO) announced its syndication panel for the launch of its April 2029 nominal bond. ANZ, BNZ, Deutsche Bank and UBS will lead the planned NZ$1.5-2 billion (US$1.1-1.5 billion) syndicated transaction.
Commonwealth Bank of Australia (CommBank) launched its first retail-targeted additional tier-one (AT1) transaction of 2018, PERLS X capital notes (PERLS X), on 7 March. CommBank says it is balancing price and volume aspirations carefully – and it is confident of a robust outcome. This is based on the level of genuine retail demand it is observing, coupled with some incremental institutional-investor support.
