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Province of Ontario (Ontario) (A+/Aa2) launched an increase to its January 2027 Kangaroo line on 20 September. The forthcoming tap, which is for minimum volume of A$25 million (US$20 million), is being marketed at 70 basis points area over semi-quarterly swap or 76.75 basis points over Australian Commonwealth government bond. Lead manager is TD Securities.
Late in the Sydney day on 19 September, BNG Bank (BNG) (AAA/Aaa/AA+) launched a tap to its July 2027 Kangaroo bond, with price guidance of 63 basis points area over semi-quarterly swap. RBC Capital Markets is leading.
On 20 September, Fonterra Co-operative Group (Fonterra) (A-/A) revealed plans to meet with Australian dollar investors on 2 and 5 October. The purpose of the meetings will be to provide an update on Fonterra’s FY17 financial performance and an Australian dollar-denominated capital-markets transaction may follow, according to the meetings’ arranger Commonwealth Bank of Australia.
The A$500 million (US$398.5 million) minimum prime residential mortgaged-backed securities (RMBS) transaction for Firstmac progressed to launch on 19 September. Firstmac Mortgage Funding Trust No. 4 Series 2-2017 (Firstmac 2017-2) is expected to price on 22 September, according to arranger National Australia Bank and additional lead managers ANZ, J.P. Morgan and Westpac Institutional Bank.
On 19 September, European Investment Bank (EIB) (AAA/Aaa/AAA) mandated a A$100 million (US$79.6 million) increase to its February 2028 maturity Kangaroo bond. The line is a “climate-awareness” bond, the proceeds of which EIB uses for lending projects in the renewable-energy and energy-efficiency fields. J.P. Morgan and Nomura are leading the increase, which has an indicative margin of 54 basis points over swap or 59.25 basis points over Australian Commonwealth government bond.
Western Australian Treasury Corporation (WATC) (AA+/Aa2) launched a syndicated increase to its October 2026 benchmark bond on 19 September. The forthcoming tap – which has ANZ, Commonwealth Bank of Australia, National Australia Bank and UBS as leads and is expected to price the day after launch – is being marketed at 10-year futures EFP plus 50-53 basis points or 62-65 basis points over Australian Commonwealth government bonds.
Deutsche Bahn (AA-/Aa1) revealed on 19 September that it has mandated banks for its debut benchmark Kangaroo transaction. According to lead managers Daiwa Capital Markets and HSBC, the forthcoming deal will have a maturity of 7-10 years and is expected to launch in the near future.
On 18 September, SGSP Australia Assets (SGSP) (A-/A3) revealed plans to update debt investors in a call scheduled for the same day. A seven-year Australian dollar-denominated deal may follow, the meetings’ arrangers ANZ, National Australia Bank and Westpac Institutional Bank add.
On 18 September, the latest residential mortgage-backed securities (RMBS) deal for Suncorp-Metway, Apollo Series 2017-2, progressed to launch. The seven-tranche transaction is for indicative volume of A$750 million (US$543.8 million) and is expected to price on or before 22 September.
World Bank simultaneously returned to Kangaroo and Kauri issuance during the second week of September, printing A$850 million (US$679.2 million) in a new five-year Kangaroo and adding NZ$350 million (US$253.3 million) to its January 2022 Kauri. The Australasian securitisation market was active too, with new deals printed by La Trobe Financial and ME Bank, and added to the pipeline by Suncorp-Metway, Firstmac and Flexi Cards.