The Reserve Bank of Australia (RBA) has embarked on an asset purchasing programme as part of its regular open market operations in support of monetary policy goals. KangaNews will provide subscribers with easy access to asset purchase data, which will be updated as the RBA makes information publicly available.
On 13 May, Wisr began taking indications of interest for its debut consumer and personal loans asset-backed securities (ABS) deal, Freedom Trust 2021-1. The transaction is capped at A$225 million (US$173.6 million) and is expected to launch in the week beginning 17 May. National Australia Bank is arranger.
New Zealand Local Government Funding Agency (LGFA)’s new 10-year deal shows signs of a longer-duration bank balance-sheet bid in the local market, a development the issuer says is encouraging for other borrowers seeking longer-tenor debt.
On 13 May, Woori Bank Sydney Branch (A/A1) mandated Commonwealth Bank of Australia as lead manager for an indicative A$100 million (US$77.3 million) floating-rate note (FRN) deal maturing in June 2022. The transaction is being marketed at 27 basis points over three-month bank bills and is expected to price as early as the day of the announcement.
Intermediaries say factors including record pricing and the imminent end of the term funding facility supported a frenetic period of nonbank securitisation issuance from mid-April to early May. Deal flow was well absorbed by a market that has been undersupplied with new credit issuance.
On 12 May, Barclays (BBB/Baa2/A) launched its multi-tranche senior-callable Australian dollar deal. The transaction includes any or all of six-year non-call five-year tranches in fixed-to-floating and floating-rate format, and an 11-year non-call 10-year tranche in fixed-to-floating rate format. Indicative price guidance is 125 and 170 basis points area over swap benchmarks.
On 12 May, Australian Office of Financial Management (AOFM) revealed a borrowing task for the 2021/22 fiscal year of A$130 billion (US$101.9 billion) following the release of the federal budget the night before. Issuance of treasury indexed bonds by tender will be around A$2-2.5 billion.
Westpac Banking Corporation’s green tier-two deal in the euro market, which priced on 6 May, was the bank’s first green-bond foray in more than three years. The market has evolved substantially and the issuer says the investor-relations process in Europe has ratcheted up its focus on borrowers’ environmental, social and governance credentials.