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Credit Union Australia (CUA) revealed on 19 April that it is planning to engage with investors in relation to its Harvey residential mortgage-backed securities (RMBS) programme. A potential Australian dollar-denominated funding and capital-relief RMBS deal may follow.
On 19 April, Heritage Bank (A3/BBB+ by Moody’s/Fitch) revealed it has mandated banks for a three-year floating-rate domestic deal. The transaction is being marketed in the area of low 130s basis points over three-month bank bills, with launch expected in the near future.
Seek printed A$175 million (US$132.7 million) of institutionally targeted unrated notes in the Australian market during the Easter-shortened week. Elsewhere, deal flow was limited to A$800 million of five-year floating-rate notes issued by Bank of China Sydney Branch and a quickfire corporate green bond follow up as Investa Commercial Property Fund printed A$100 million of 10-year notes.
Having issued two benchmark transactions in less than a month, including a debut in the Kangaroo market, Auckland International Airport (Auckland Airport) says a larger capex task will make the issuer a more frequent visitor to global markets. It highlights the extremely favourable pricing outcome it received in both Australian and New Zealand dollars and the positive tenor evolution of the Australian option.
A rare fully institutionally targeted unrated transaction in the Australian market demonstrates the increasing willingness of fund managers to engage with transactions without a formal rating, deal sources say. But further flow will likely be constrained by the issuer’s unusual status as an unrated entity with investment-grade metrics.
On 12 April, the financing entity for Investa Commercial Property Fund (ICPF) (A-/S&P), ICPF Finance, priced a new 10-year green bond at the tight end of initial price talk of 155-160 basis points over semi-quarterly swap. ICPF Finance’s launch comes in the wake of a series of investor meetings and conference calls which took place during the week of 3 April.
Seek (NR) printed A$175 million (US$131.3 million) of five-year senior-unsecured floating-rate notes on 11 April. The transaction was upsized from indicative A$100 million (US$74.9 million) volume and printed at the tight end of 230-240 basis points area guidance over bank bill swap rate.
Lead managers on Telstra Corporation (Telstra)’s A$1 billion (US$752 million) multi-tranche domestic deal tell KangaNews that following a succession of smaller steps the domestic market has taken a giant leap forward with this latest transaction. According to KangaNews data, the deal is Telstra’s largest-ever domestic transaction and it contains the biggest 10-year non-credit-wrapped tranche issued by a nonfinancial corporate into Australia.
Telstra Corporation (Telstra)'s A$1 billion (US$752.2 million) domestic print, its largest-ever in the domestic market, was the highlight of the first week of April. Asciano joined the corporate pipeline soon after the Telstra transaction had priced, revealing plans to meet fixed-income investors in Australia and Asia over the course of the month.
