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The latest asset-backed securities (ABS) deal for Motor Trade Finance (MTF), MTF Sierra Trust 2017, progressed to launch on 5 September. The forthcoming deal has indicative volume of NZ$220 million (US$157.8 million) and a seven-tranche structure, with pricing expected on 7 September.
Volkwagen Financial Services Australia (VWFS) (BBB+/A3) revealed plans for a benchmark-sized, Australian dollar-denominated, five-year transaction on 5 September. According to the forthcoming transaction’s lead managers, Citi and HSBC, the Reg S-only deal will emerge in the near future in either or both of fixed- and floating-rate format.
The capped A$500 million (US$397.3 million) increase to the September 2022 select line for South Australian Government Financing Authority (SAFA) (AA/Aa1) progressed to launch on 5 September. The forthcoming deal is being marketed at 54.5-56.5 basis points over EFP, or 35-37 basis points over Australian Commonwealth government bond.
Rentenbank (AAA/Aaa/AAA) launched a minimum A$100 million (US$79.6 million) April 2028-maturity Kangaroo bond on 4 September. The forthcoming deal is being marketed at 50 basis points area over semi-quarterly swap and 54.875 basis points area over Australian Commonwealth government bond.
There was plenty of new primary domestic and international issuance on both sides of the Tasman Sea during the last week of August, including Latitude Finance Australia's second credit-card asset-backed securities deal and a debut domestic transaction for Bank of Nova Scotia Australia Branch.
On 1 September, ME Bank began taking indications of interest on the A$460 million (US$365.2 million) class A notes of its latest residential mortgage-backed securities (RMBS) issue, SMHL Series 2017-1 RMBS. Initial price guidance is in the low 100 basis points area over one-month bank bills for the 2.6-year weighted-average life notes.
On 1 September, South Australian Government Financing Authority (SAFA) (AA/Aa1) revealed plans to tap its September 2022 select line for up to A$500 million (US$397.2 million) by syndication. Launch is earmarked for the week beginning 5 September, via lead managers ANZ, Commonwealth Bank of Australia, National Australia Bank and Westpac Institutional Bank.
