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On November 6, ANZ Banking Group (ANZ) (AA-/Aa2/AA-) priced a new Australian dollar tier-two issue. According to KangaNews data, the self-led deal is the second major-bank tier-two transaction in Australia this year, after National Australia Bank (NAB) printed A$1.1 billion (US$793.1 million) of 10-year non-call five bonds at 185 basis points over bank bill swap rate (BBSW) in March.
After just five auctions, the Australian Office of Financial Management has put its residential mortgage-backed securities divestment programme on hold. Recent deal flow continued at a slow pace, although corporate issuance activity has resumed in the Australian market.
Wayne Byres, chairman of the Australian Prudential Regulation Authority (APRA), used a November 5 speech to highlight the process of ensuring Australian banks are "unquestionably strong" as a key focus for 2016. However, Byres also gave a nod to recent capital-raising efforts when acknowledging local banks' solid starting place for next year's dialogue.
On November 5, Stockland Trust Management (Stockland) (A-) revealed it has mandated ANZ and Commonwealth Bank "to engage with Australian dollar debt investors". A capital markets transaction may follow, the issuer says.
After selling zero volume in its latest auction of residential mortgage-backed securities (RMBS), the Australian Office of Financial Management (AOFM) revealed on November 5 that the auctions scheduled for November and December 2015 would not proceed and that no auction will be held in January next year.
Auckland International Airport (Auckland Airport) (A-) priced a new, seven-year domestic issue on November 4. An announcement lodged with the NZX after launch revealed the volume of the forthcoming issue would be up to NZ$100 million (US$67.6 million) and the indicative margin range was 95-100 basis points over mid-swap.
On November 4, Oversea-Chinese Banking Corporation Sydney Branch (OCBC Sydney) (AA-/Aa1/AA-) priced a new domestic three-year senior-unsecured issue. According to KangaNews data, the issuer most recently visited the domestic market in February when it priced a A$300 million (US$216.2 million) June 2019 floating-rate note issue. That deal priced at 81 basis points over bank bills.
For the first time in many months, analyst opinion following the latest Reserve Bank of Australia (RBA) cash-rate decision exhibits a significant difference of opinion. Some interpret the reserve bank's latest policy view as a positive read on the Australian economy, while others believe the November decision merely represents a pause before future rate cuts.
Westpac Banking Corporation (Westpac)'s annual results for the year ending September 30 2015, published on November 2, maintain the recent trend for Australian major banks' common-equity tier-one (CET1) capital ratios to fall into a very narrow band. Westpac reported CET1 of 9.5 per cent at the end of its financial year.