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Pepper Australia priced its first nonconforming residential mortgage-backed securities (RMBS) transaction of 2016 on March 24 with preliminary ratings assigned to four classes of notes on March 22.
Credit Union Australia (CUA) (BBB+/A3) priced a new, three-year Australia dollar floating-rate note on March 23. According to KangaNews data, the forthcoming transaction will be the issuer's first public senior-unsecured transaction in Australia, although it is a regular securitisation issuer. CUA most recently priced a A$750 million (US$571.2 million) residential mortgage-backed securities (RMBS) deal in February 2015, its largest RMBS since it issued the same volume in June 2007.
International Finance Corporation (IFC) (AAA/Aaa) prcied an increase to its 2026 Kangaroo bond on March 22, in the supranational's eighth Australian dollar deal of the year. According to KangaNews data, all but two of these have been in the 2026 maturity, which was introduced in January in a A$125 million (US$94.9 million) transaction and has A$275 million on issue ahead of the latest tap.
Following a mandate announcement earlier this month, CAF – Development Bank of Latin America (CAF) (Aa3/AA-/AA-) priced a new, five-year Kangaroo bond on March 22. According to KangaNews data, the supranational now has outstanding volume of A$1.05 billion (US$796.9 million) in the Kangaroo market, A$350 million of which will mature in September this year.
Issuer and lead managers on Toronto Dominion Bank (TD Bank)'s record-breaking Kangaroo transaction say the deal opens the way to additional Kangaroo market supply from Canadian banks and global financial institutions (FIs) more generally. TD Bank itself hopes to continue to be a regular issuer going forward.
ING Bank Australia (ING Australia) priced its first residential-backed mortgage securities (RMBS) transaction of 2016 on March 18. Expected ratings were assigned to IDOL 2016-1 Trust on March 14. The transaction was upsized from minimum aggregate volume of A$500 million (US$378.5 million).
Commonwealth Bank of Australia (CommBank) has accessed local residential mortgage-backed securities (RMBS) and offshore senior-unsecured markets in March. Wider margins on both transactions reflect broader market moves, but the issuer says pricing continues to follow cyclical trends – while liquidity is available in volume for well-timed trades.
Slower primary-market activity marked the last full week before the Easter holiday, though New Zealand retained its deal momentum. ANZ New Zealand priced its first deal of 2016 for NZ$625 million (US$427.1 million), and Genesis Energy returned to the domestic market, for the first time since 2013, with a NZ$100 million transaction.
Newcastle Permanent Building Society (NPBS) (BBB+/A2) priced a new senior-unsecured three-year floating-rate Australian dollar deal on March 16. According to KangaNews data, NPBS accessed the domestic market twice last year, pricing A$225 million (US$167.9 million) of three-year and A$50 million of five-year floating-rate notes in February and March respectively. Pricing was 110 and 135 basis points over bank bill swap rate.
AusNet Services (AusNet) says its ability to print US$375 million of 2071 non-call 5.5-year Reg S hybrid notes came as improving offshore markets offered some clarity around fair pricing of hybrid instruments. The deal's lead managers insist a more positive environment for credit and risk should support ongoing activity, even as markets continue to be characterised by fickle execution windows.