Latest News
On June 9, National Australia Bank (NAB) priced its first prime residential mortgage-backed securities (RMBS) transaction of 2016. National RMBS Trust 2016-1 was assigned expected ratings on May 30, following a May 13 announcement that the bank would meet with debt investors ahead of a potential RMBS transaction. A preliminary rating report by Fitch Ratings (Fitch) revealed that National RMBS Trust 2016-1 consists of three tranches of notes with indicative volume of A$750 million (US$549.1 million).
On June 9, Crédit Agricole (A/A2/A) revealed plans to conduct an Australian and Asian investor call on Friday June 10. According to the call's arrangers, Crédit Agricole CIB, National Australia Bank, Nomura, UBS and Westpac Institutional Bank, a potential Australian dollar EMTN subordinated transaction may follow.
Australian investors say the outcome of Apple's second Australian dollar transaction, the second jumbo Kangaroo corporate print in three days, illustrates the extent of local capacity for true corporate issuance. Apple added A$1.425 billion (US$1.1 billion) to the A$1 billion printed by the Coca-Cola Company to make a record corporate Kangaroo week.
On June 7, Peet (NR) announced the close of the issue of Series 1, Tranche 1 Peet senior-unsecured bonds. This follows the May 10 Australian Securities Exchange (ASX) announcement that it had completed the bookbuild, increasing the offer's volume as a result. Peet had planned to raise A$50-75 million (US$36.9-55.4 million) from the retail offer but following solid demand sanctioned an increase to A$100 million with an ability to raise more or less. The bonds are expected to settle on June 10.
IMB (BBB+) priced a new tier-two transaction on June 6 following the a series of investor meetings. IMB has been an active issuer in residential-mortgage backed securities (RMBS) format. It was last in the RMBS market in May 2013 with a three-tranche, A$300 million (US$25.6 million) transaction. The A$279 million class A notes from this deal priced at 100 basis points over bank bill swap rate with a weighted-average life of 3.5 years.
Tasmanian Public Finance Corporation (Tascorp) (AA+/Aa1) mandated a new, syndicated February 2028-maturity transaction on June 6. According to KangaNews data, Tascorp's most recent benchmark syndication was in August last year, when it priced a A$300 million (US$219.7 million) February 2026 bond at 50.25 basis points over Australian Commonwealth government bond. Tascorp has since issued A$55 million and A$45 million in a new 30-year line in April and May this year.
National Australia Bank (NAB) disclosed updated pricing information on its forthcoming domestic retail transaction on June 6, having closed the bookbuild a day ahead of schedule on the back of what the issuer calls "strong demand". NAB increased deal volume to at least A$1.35 billion (US$994.7 million), from A$750 million at launch, and set the margin at 495 basis points over bank bills or the lower end of a 20 basis point indicative range.
Apple (AA+/Aa1) priced A$1.425 billion (US$1.03 billion) in its second-ever Kangaroo transaction on June 3. Initial price guidance for the four-, seven- and 10-year tranches was in the area of 85, 125 and 135 basis points over swap, respectively.
Coming to market with the largest high-grade Kangaroo deal this year once again highlighted the positive sentiment around the World Bank (AAA/Aaa) borrower profile and issuance strategy, deal sources say. The issuer points to its credit strength and consistent funding strategy in achieving deal volume that has become unusual in the Australian supranational, sovereign and agency (SSA) market, adding that interest from new investors added a further dimension to the success of the deal.
Province of Alberta (Alberta) (AA/Aa1) priced a new, 10.5-year A$125 million (US$90.4 million) Kangaroo transaction on June 3. This will be the Canadian issuer's debut deal in the Kangaroo market, according to KangaNews data, and it follows previous issuances from four other provinces – British Columbia, Ontario, Manitoba and Québec.