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Glencore Australia Holdings (Glencore) (Baa2/BBB) priced its debut domestic deal in the Australian market on September 11. The five-year benchmark transaction had indicative price guidance of 140 basis points area over swap.
An innovative use of legal documentation enabled Origin Energy (Origin) to successfully price its second-ever euro-denominated hybrid security despite gapping secondary-market prices in its outstanding issue. The pricing and volume outcome in the new transaction emphasises the need for conscientious investor relations work, the issuer says.
The A$950 million (US$863.4 million) new asset-backed securities (ABS) transaction sponsored by Bank of Queensland (BOQ) and backed by a pool of auto loans, was priced on September 11.
Bank of Tokyo-Mitsubishi UFJ Sydney Branch (BoTM Sydney) (A+/Aa3) priced a new transaction in the Australian market on September 11. The forthcoming deal will be BoTM Sydney's second senior-unsecured four-year line in the domestic market in 2014.
On September 11, Metropolitan Life Global Funding I (MetLife) (AA-/Aa3/AA-) priced a new seven-year senior-unsecured benchmark transaction in the Kangaroo market. The newly priced deal is only the second at such extended tenor from an issuer in the financial institution (FI) sector since before the financial crisis.
Province of Québec (Québec) (A+/Aa2/AA-) priced a tap to its 2025 Kangaroo bond on September 11. According to KangaNews data, this is the first tap to this line which was originally launched at A$100 million (US$92.1 million) on August 28.
After four consecutive rate hikes the Reserve Bank of New Zealand (RBNZ) left the official cash rate (OCR) on hold at 3.5 per cent at its September meeting, which was held shortly in advance of New Zealand's general election. Analysts were universally expecting the pause and the consensus is now that will be on hold until at least March.
On September 10, Queensland Treasury Corporation (QTC) (AA+/Aa1) launched and priced a new November 2018 maturity benchmark floating-rate note (FRN) issue after mandating the transaction a day earlier. QTC is the second semi-government issuer to access the four-year part of the curve in FRN format since the Australian Prudential Regulation Authority confirmed plans to ease the liquidity coverage ratio regime on September 4.
On September 10, BNG Bank (AA+/Aaa/AAA) priced a new five-year line in the Australian market. According to KangaNews data, this is the first time BNG Bank has issued in the five-year part of its Kangaroo curve since August 2011. That deal was a A$150 million (US$139.2 million) floating-rate note priced at 58 basis points over bank bill swap rate.
Bendigo and Adelaide Bank (BEN) (A-/A2/A-) priced its second senior-unsecured benchmark of the year on September 10. The bank sold A$750 million (US$702.7 million) of August 2016 notes in May, and also this year – in January – completed a A$300 million transaction in the tier-two market for Australia's first wholesale issue of these securities under Basel III rules.
The race for the title of Australian domestic intermediary – excluding Kangaroo issuance – for 2014 is wide open judging by the latest positions in the KangaNews league tables. The 20 banks to have led domestic deals in 2014-to-date account for A$51.8 billion (US$47.7 billion) of issuance, including self-led and syndicated semi-government transactions but excluding Kangaroo flow.
Bendigo & Adelaide Bank (BEN) (A/A2/A-) completed the bookbuild for its offer of convertible preference shares (CPS2) on September 8. The offer of additional tier-one qualifying capital was increased to A$250 million (US$220.3 million) from A$200 million, and was priced at 320 basis points over bank bill swap rate (BBSW), the tight end of the 320-330 basis points indicative margin range.