Latest News
Bluestone Group (Bluestone) priced its first Australian dollar residential mortgage-backed securities (RMBS) issue of 2014 on October 28. The transaction – Sapphire XIII Series 2014-1 Trust – matched its indicative volume of A$209.35 million (US$185.4 million) across nine tranches.
Bank of Queensland (BOQ) (A-/A3/BBB+) priced a five-year, senior-unsecured deal in the Australian domestic market on October 28, in what is the issuer's longest-tenor public, senior-unsecured deal issued without government guarantee, according to KangaNews data.
Volatility in global markets continued to hamper deal flow in Australasian markets for another week with only a rare domestic covered bond from Suncorp-Metway and taps from Queensland Treasury Corporation and Province of Ontario emerging in the public space. At least two issuers have initiated investor meetings, however.
Australia Rail Track Corporation (ARTC) (Aa2) has mandated a series of debt investor meetings offshore in the week of November 3 2014, which will be followed by investor meetings in Australia. A capital-markets transaction "may follow", according to a statement the meetings' arrangers.
Queensland Treasury Corporation (QTC) (AA+/Aa1) priced an increase to its existing July 2024 benchmark Australian dollar bond on October 23. According to KangaNews data, the transaction is the second syndicated tap of the line which was introduced in June 2011 at a volume of A$1 billion (US$877.5 million) and pricing of 61 basis points over Australian government bond (ACGB).
On October 23, Suncorp-Metway (Suncorp) priceda new five-year Australian dollar-denominated covered bond with an expected triple-A rating from Moody's Investors Service and Fitch Ratings.
Aside from the Australian Office of Financial Management (AOFM's) A$7 billion (US$6.1 billion), curve-extending benchmark nominal bond deal, the rest of the market during the week under review has been virtually silent as volatility returned to global markets with a vengeance.
The Australian Office of Financial Management (AOFM) priced a new, curve-extending April 2037 benchmark nominal bond by syndication on October 15. The price guidance was 60-65 basis points over the implied bid yield for the primary 10-year Treasury bond futures contract.
The sub-benchmark volume requirements of Australia Pacific Airports Corporation (Melbourne Airport) did not negatively impinge on the demand or pricing for its second-ever euro deal despite softer market conditions around the launch window, leads say. Indeed, in an environment where investors have cash to put to work, deal sources insist sub-benchmark euros are a more viable option than ever.
Citigroup is planning a series of investor meetings ahead of a potential residential mortgage-backed securities transaction. The forthcoming deal could be the first issuance off Citibank Australia's mortgage securitisation vehicle, Securitised Australian Mortgage Trust, since the first half of 2011.
Australia's first collective vehicle for funding local authorities is closing in on a market debut, with minimum volume of A$150 million (US$131.6 million) targeted. The Local Government Funding Vehicle (LGFV), which aims to provide lower-cost, capital-markets funding for councils in the state of Victoria, received a rating on October 9 having already roadshowed to institutional investors – and could launch a debut transaction in the near future.