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Market participants say the Australian Office of Financial Management (AOFM)'s plan to extend its bond curve out to 2046, beyond its current longest maturity point of 2040, highlights the evolving maturity of the Australian market. The extension could attract new buyers into the AOFM curve and in turn bolster the wider market's trading capabilities and international relevance.
On October 5, Think Tank Group (Think Tank) revealed it has mandated Commonwealth Bank of Australia and Deutsche Bank to engage investors in a potential Australian dollar SME commercial mortgage-backed securities (CMBS) transaction. According to KangaNews data, Think Tank last issued in the Australian securitisation market in June 2014 when it printed A$113.6 million (US$86.4 million) in its inaugural CMBS transaction. Think Tank Series 2014-1 Trust had an eight-tranche structure with the largest, A$28.4 million A1 tranche, pricing at 150 basis points over bank bill swap rate (BBSW) for a weighted-average life (WAL) of 0.7 years.
Transurban Queensland (BBB by S&P), a 62.5 per cent owned subsidiary of Transurban, printed a new A$200 million (US$152.6 million) senior-secured transaction on October 5. Initial price guidance on the seven-year fixed-rate deal was 185-190 basis points over semi-quarterly swap, a lead-manager announcement revealed.
On October 4, Inter-American Development Bank (IADB) printed A$125 million (US$95.8 million) in a new April 2027-maturity Kangaroo bond. Indicative price guidance was in the area of 50 basis points over semi-quarterly swap. According to KangaNews data, IADB most recently issued in the Kangaroo market in August this year when it printed a A$50 million tap to its June 2026 line.
On October 4, NWB Bank (AAA/Aaa) priced a A$115 million (US$88.2 million) increase to its September 2026 Kangaroo bond. According to KangaNews data, NWB Bank debuted this line in February for volume of A$50 million and pricing of 77 basis points over Australian Commonwealth government bond (ACGB). The line was most recently increased by A$30 million at 79.75 basis points over ACGB in September.
BNG Bank (AAA/Aaa/AA+) priced a A$100 million (US$76.7 million) increase to its August 2026-maturity Kangaroo line on October 4.The trade was initially marketed as a minimum A$25 million tap with price guidance of 75 basis points over semi-quarterly swap and 74 basis points over Australian Commonwealth government bond (ACGB). According to KangaNews data, the line was introduced in February of this year for A$50 million with pricing of 75.75 basis points over ACGB.
On October 4, Asciano (BBB-/Baa3) disclosed plans to undertake a series of fixed-income investor meetings in Australia, Asia, the UK and the US. The meetings are due take place between October 10 and October 28.
Qantas Airways returned to the Australian domestic market printing A$250 million (US$190.8 million) of 2023-maturity notes on September 29 and following up with A$175 million of 10-year notes a day later. AAI - Suncorp Group's insurance subsidiary - printed A$330 million of 26-year non-call six-year notes, garnering a substantial middle-market bid. Meanwhile, Firstmac's latest residential mortgage-backed issue was upsized to A$600 million.
The extent of middle-market demand for AAI's recent tier-two offering took even the issuer and its lead managers somewhat by surprise, they tell KangaNews. AAI – Suncorp Group (Suncorp)'s wholly owned insurance subsidiary – capped volume on its most recent trade at A$330 million (US$251.6 million) although the deal was multiple times oversubscribed.
Qantas Airways (Qantas) (BBB-/Baa3) printed A$175 million (US$133.5 million) in a new, 10-year Australian dollar-denominated fixed-rate transaction on September 30. Initial price guidance on the transaction was 290 basis points over semi-quarterly swap.
On September 29, Dexus Wholesale Property Fund (DWPF) (A by S&P) printed a A$65 million (US$49.8 million) increase to its June 2025 maturity domestic line. Initial price guidance on the tap was 165 basis points over semi-quarterly swap, the transaction's lead manager – Westpac Institutional Bank – revealed earlier on September 29. According to KangaNews data, the June 2025 line was introduced in June last year for volume of A$50 million and pricing of 155 basis points over swap.
On September 29, Qantas Airways (Qantas) (BBB-/Baa3) printed A$250 million (US$192.1 million) in a new, seven-year Australian dollar-denominated fixed-rate transaction. Initial price guidance was in the area of 270 basis points over semi-quarterly swap as revealed by the transaction's lead managers, ANZ, Deutsche Bank and HSBC on September 28.