insto - Australian financial markets

Auckland City Council issues NZ$100 million June 2013 FRNs

The Auckland City Council issued NZ $100 million in 3-year floating rate notes in two tranches, with a maturity date of 14 June 2013.

ANZ was the sole arranger for the first $50 million tranche. Auckland City Council then tapped this issue and issued a further $50m. ANZ and CBA were the joint arrangers for the second $50 million tranche.

Both tranches were rate set and settled on June 14.

Tranche 1

This week we saw three Aussie issuers going into Japanese and European markets; the second RMBS deal and the largest Kangaroo transaction (by World Bank) so far in 2010. In New Zealand, the World Bank also executed the largest Kauri bond on issue.

Domestic Market
BoQ launched an A$500 million RMBS transaction maturing on 7 May 2040, Series 2010-1 REDS, which will be priced mid-to-early this week against 1 month BBSW. This is the second mortgage-backed offer this year, following AMP Bank’s $1 billion RMBS issue in January.

Robust Domestic Market
This week we saw several AMTN and Kangaroo launches, with QTC’s non-guaranteed A$4 billion 21 November 2014 benchmark issue leading the way. This was the largest single day semi-government issuance in Australia’s history and the first non-guaranteed issue from the nation’s two largest semi-government borrowers (QTC, Tcorp). QTC (AA+/Aa1) priced the deal with a 5.75 percent coupon and 5 basis points over swap to yield 5.8425 percent. (For details of the deal please check Insto Bond Diary Thursday, Jan 21)

ANZ has completed its first non guaranteed 144a benchmark issue, an USD3 billion deal. The transaction received strong investor support following its recent US investor roadshow, with 161 investors from Asia, Australia and New Zealand.
The transaction consisted of three tranches of fixed rates notes, which were all priced inside initial price guidance.

On 11 November, Westpac Banking Corporation priced two tranches of new bonds, totalling A$2.5 billion.

The Export Finance & Insurance Corporation (EFIC) has raised JPY1 billion (A$12.4m) in a structured trade.

The 15 year non-call 1 year Step-Up Reverse floating rate notes pay a coupon of 2.15 per cent for the first 12 months before switching to a floating JPY LIBOR structured step-up coupon. The proceeds were swapped to floating rate US dollars at a sub 6 month LIBOR margin. The maturity date on the transaction is 2 December 2024 and the settlement date is 12 November 2009.

The deal was a private placement driven by a reverse enquiry.

ING prints guaranteed trade (30 September 2009)*

ING Bank Australia, has priced a A$600 million three year fixed rate Australian government guaranteed deal.

The bonds paid a coupon of 5.50 per cent, to yield 5.5825 per cent with a re-offer price of 99.775 per cent. This is equivalent to a margin of 20 basis points over swap. The bonds are expected to be rated AAA by S&P.

The deal priced today, 30 September 2009, matures on 8 October 2012 and settles on 8 October 2009.

UBS was sole lead manager of the deal.

National Australia Bank, rated AA/Aa1/AA, has priced a five year senior fixed and floating rate bond issue.

A total of A$1.5 billion of bonds priced at a margin of 96 basis points over BBSW/swap.

The deal was split into a A$800 million fixed rate tranche and a A$700 million floating rate tranche.

The A$800 million 6.75 per cent fixed rate tranche was issued at a re-offer price of 100.525 to yield 6.625 per cent. This is equivalent to a margin of 96 basis points to swap or 147.5 basis points over the ACGB 2014 bond.

Suncorp Metway has priced a A$1 billion four year government guaranteed fixed and floating rate notes issue at a margin of 38 basis points over swap/BBSW.

The deal was split into a A$200 million fixed rate tranche and a A$800 million floating rate tranche.

The A$200 million fixed rate tranche paid a coupon of 5.75 per cent at a capital price of 99.175 to yield 5.985 per cent. This equates to 38 basis points over swap.
The A$800 million floating rate tranche priced at par and pays a coupon on 38 basis points over three month BBSW.