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Vicinity Centres (A/A2) revealed on 23 March that it is planning to meet investors across Asia and Australia in the week beginning 3 April to provide an Australian debt update. National Australia Bank and Westpac Institutional Bank are arranging the forthcoming meetings, which may be followed by a capital-markets transaction.
On 23 March, Pepper Australia (Pepper) priced its latest residential mortgage-backed securities (RMBS) issue, Pepper Residential Securities Trust No. 18. The deal was upsized from A$600 million (US$462.4 million). Price guidance was 135-140 basis points area over one-month bank bills on the A$128-210 million, 2.1-year weighted-average life (WAL) class A1-a notes, 210-220 basis points over bills on the A$73.2 million 2.1-year WAL A2 notes, and 275-285 basis points over bills on the A$58.2 million 3.8-year WAL class B notes.
National Australia Bank (NAB) completed Australia's first retail tier-two subordinated issue on 20 March. According to an announcement lodged with the Australian Securities Exchange (ASX), the offer was upsized to A$943.2 million (US$699.3 million) with pricing at the tight end of 220-230 basis points over bank bills indicative margin.
In the wake of the largest-ever green bond to price in the Australian dollar market – a capped A$750 million (US$575.1 million) seven-year issue by Queensland Treasury Corporation (QTC) – lead managers predict further evolution of the sector in 2017, including corporate supply. The state treasury corporation itself says it sees green bonds forming a regular component of its funding mix.
Kiwibank’s decision to pull a planned Kangaroo transaction between pricing and settlement, with no explanation provided at the time, caused a stir in markets this week. The decision was driven by a preliminary Reserve Bank of New Zealand view that the issuer’s outstanding tier-one and tier-two securities may not comply with the local capital-adequacy regime. In the wake of its debut green-bond transaction, Queensland Treasury Corporation says green could form a regular component of its funding mix.
Liberty Financial (Liberty) priced an upsized residential mortgage-backed securities (RMBS) issue – Liberty Series 2017-1 Trust – on 17 March. The transaction had A$500 million (US$378.3 million) indicative volume and price guidance of 140 basis points over one-month bank bills on the A$250 million 2.5-year weighted-average life (WAL) class A1-b notes and 225 basis points over bills on the A$82.5 million 3.5-year WAL class A2 notes.