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After the AB tranches in Bendigo and Adelaide Bank (BEN)'s recent Torrens Series 2014-1 Trust (Torrens 2014-1) were the most hotly-bid of the tranches offered, the Australian Office of Financial Management (AOFM) announced on February 28 that it has sold the bulk of its holdings of class AB notes of residential mortgage-backed securities (RMBS) tranches.
Export Development Canada (EDC) (AAA/Aaa) priced an increase to its 3.25 per cent May 2018 Kangaroo line on February 27. According to KangaNews data, the deal is the second tap of the line which was introduced in May 2013 at a volume of A$400 million (US$360.2 million) and pricing of 59.75 basis points over Australian government bond (ACGB). The line was later increased by A$350 million in September 2013 with pricing of 62.5 basis points over ACGB.
Rentenbank (AAA/Aaa) priced a new NZ$400 million (US$332.6 million) five-year Kauri transaction on February 27. According to KangaNews data, this is Rentenbank's largest ever Kauri. Prior to this deal, Rentenbank's biggest Kauri was a NZ$275 million line priced in October 2007 and which matured in April last year.
European Investment Bank (EIB) (AAA/Aaa/AAA) priced an increase to its A$200 million (US$180.2 million) August 2024 Kangaroo transaction on February 26. The forthcoming transaction is the first increase to this line, which was priced on January 30 this year at 94.25 basis points over Australian government bonds.
Queensland Treasury Corporation (QTC) (AA+/A1) priced a new three-year floating-rate note (FRN) syndicated transaction in the domestic market on February 25. According to KangaNews data, QTC priced its previous syndicated transaction on October 31 last year, a three-year FRN with a volume of A$500 million (US$451.1 million) and pricing of 6.5 basis points over bank bill swap rate.
On February 24, Asian Development Bank (ADB) (AAA/Aaa) priced a new five-year Kauri transaction.
Improving demand for New Zealand dollar paper from offshore investors saw the World Bank price its largest – and the market's second largest ever – deal on February 18. The borrower and joint lead managers on the transaction point to significant offshore participation with a strong bid out of Asia as a main driver for the deals success.
Bendigo and Adelaide Bank (BEN) has priced its first Australian dollar prime residential mortgage-backed securities (RMBS) issue of the year.
Insurance Australia Group (IAG) – through its subsidiary, Insurance Australia Limited – has revealed plans to meet Australian and Asian investors to discuss a potential domestic tier-two transaction. The issuer is the second regulated entity to go public on its hopes to tap the domestic wholesale tier-two market under Basel III rules, following Bendigo and Adelaide Bank's transaction in January this year.
The long-promised pick-up in deal flow materialised in both Australia and New Zealand as the end of February approached, with rates and credit issuance both firing. Half-yearly results season in corporate Australia also saw a flurry of activity in the ratings world.