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The investor-friendly approach adopted by Banco Santander in the execution of its A$800 million (US$611.9 million), senior-nonpreferred EMTN was instrumental in the deal’s volume and bookbuild outcome, deal sources suggest. They say other offshore bank issuers are circling, based on a view of Australian dollars as a good diversification option.
Asian Development Bank (ADB) (AAA/Aaa/AAA) launched a A$60 million (US$47.6 million) increase to its March 2032 Kangaroo bond on 19 June. The Mizuho Securities-led tap is being marketed at 62.25 basis points over Australian Commonwealth government bond or 45 basis points over semi-quarterly swap, and will price on day of launch.
The five-year domestic deal for John Deere Financial (John Deere) (A/A2/A) progressed to launch a on 19 July. Initial price guidance is in the area of 90-95 basis points over semi-quarterly swap.
Australian Catholic University (ACU) (Aa2) mandated banks for a new, 10-year Australian dollar-denominated sustainability bond on 19 July. Launch is expected in the near future, according to lead managers National Australia Bank and UBS.
The Australian Prudential Regulation Authority (APRA) published its long-awaited determination of the definition of “unquestionably strong” in relation to Australia’s big-four banks on 19 July. It also hints at a potential future move more closely to align Australian capital ratio methodology with international standards.
In its market debut, University of Technology, Sydney (UTS) reaped the benefits of tightening spreads and a positive market tone to print the largest and tightest domestic transaction by an Australian university, deal sources say. They also attribute the deal’s success to a growing familiarity with the university funding model.
John Deere Financial (John Deere) (A/A2/A) mandated a five-year, Australian dollar-denominated, senior-unsecured transaction on 18 July. Initial price guidance for the deal is in the area of 90-95 basis points over semi-quarterly swap, according to lead manager Westpac Institutional Bank.
Commonwealth Bank of Australia (CommBank) (AA-/Aa3/AA-) launched a new, self-led, dual-tranche domestic benchmark on 18 July. Price guidance on the forthcoming five-year tranche is 86-89 basis points over three-month bank bills and semi-quarterly swap. Initial price guidance on the 10.5-year tranche is 105 basis points area over semi-quarterly swap.
Bank of New Zealand (BNZ) (AA-/A1) launched a new, five-year senior-unsecured retail-targeted domestic deal on 18 July. The issuer reveals that the indicative volume for the self-led transaction is up to NZ$100 million (US$73.2 million) with the right to accept unlimited oversubscriptions.
Resimac revealed late on 17 July that it has started taking indications of interest on the potential Premier Series 2017-2 residential mortgage-backed securities (RMBS) issue. The forthcoming deal will be comprised of seven tranches and has indicative volume of A$500 million (US$389.8 million).