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A new asset-backed securities (ABS) issue from Medfin Australia (Medfin), a subsidiary of National Australia Bank (NAB) that originates auto and equipment loans to the healthcare industry, has priced. Seven of the eight classes of notes that make up the deal, which was upsized to A$400 million (US$414 million) from an indicative volume of A$300 million, were given expected ratings by Fitch Ratings (Fitch) on September 25.
Shinhan Bank (Shinhan) (A/A1/A) priced a new three-year Kangaroo on September 25. It is the bank's second issue into the Australian dollar market since it debuted in 2007 with a dual tranche, fixed and floating note issue with a total volume of A$400 million (US$416.8 million) which matured in 2010.
ING DIRECT's IDOL 2012-2 Trust priced on September 27, with the issue of residential mortgage-backed securities (RMBS) upsized by more than double to total the equivalent of A$1 billion (US$1.04 billion). The class A1 notes are denominated in US dollars; according to KangaNews data, the weighted average life of those notes is, at 2.4 years, the longest-dated US dollar RMBS issue by an Australian entity since before the financial crisis.
The New South Wales Treasury Corporation (TCorp) has priceda new bookbuilt transaction with a volume of A$500 million (US$ 520.8 million) and a coupon of 3.5 per cent. Consolidations are being offered out of the Commonwealth government-guaranteed April 2019 line after the new deal, maturing March 20 2019.
Korea Gas Corporation (KoGas) (A+/A1/A+) has priced a A$300 million (US$313.1 million) three-year bond at 155 basis points over the semi-quarterly swap rate - 10 basis points tighter than indicated at the launch. The transaction, which priced on September 20 2012, is the second corporate Kangaroo to issue since 2006 following a five-year deal by BP Capital on August 29 for A$500 million (US$521.9 million).
The Kangaroo market geared up in the third week of September, with five deals priced - including three debuts. Metropolitan Life Insurance and Korea Gas Corporation priced their inaugural Kangaroo deals, while Stadshypotek debuted with a covered bond. Queensland Treasury Corporation brought a sydnicated deal to the domestic market, though issuance remained quiet in securitisation and in the New Zealand market.
National Australia Bank (NAB) (AA-/Aa2/AA-) has prefunded US$1.5 billion for financial year 2013 by printing a dual-tranche covered issue on September 20, on the back of "solid" reverse enquiry.
Liberty Financial's Liberty Series 2012-1 Auto has priced its second asset-backed security (ABS) deal of 2012 following a residential mortgage-backed (RMBS) transaction in July. A Moody's Investors Service report released on September 21 said the deal is a securitisation of "of auto loans extended to prime and non-conforming consumer obligors located in Australia".
Lead managers on the debut Kangaroo transaction issued by Metropolitan Life Global Funding (MetLife Funding) say the deal attracted strong demand from Australian real-money investors attracted by the credit-enhanced structure of a funding agreement (FA)-backed issue. However, they are hesitant to predict that the deal will trigger a full-scale revival of the Kangaroo market for US financial institutions (FIs).
Stadshypotec has priced its debut covered bond into the Kangaroo market in the form of a five-year benchmark. The deal will be the first Kangaroo covered bond since Canadian Imperial Bank of Commerce last issued, in July 2011, and the second ever Nordic Kangaroo covered bond following DNB Nor Boligkreditt's debut in June last year.
In its debut issue in the Kangaroo market, Metropolitan Life Insurance Company (MetLife) (AA-/Aa3/AA-) priced a new A$500 million (US$523.4 million) five-year transaction on September 19. According to KangaNews data, the deal, launched on September 18, is the first non-bank financial institution (FI) Kangaroo since Swiss Re placed a hybrid issue in April 2007.
QIC Shopping Centre Fund (A-) has priced a new five-year fixed rate transaction on September 19 for A$200 million (US$208.6 million), at 185 basis points over swap - five points tighter than indicated at the launch. The deal, QIC Shopping Centre Fund's first public issue since pricing A$200 million in fixed rate notes in April 2011, is expected to price by September 20 2012.