insto - Australian financial markets

Australia’s export credit agency EFIC raised JPY500 million in a structured private placement trade on Monday.

Details are:

Issuer: Export Finance &Insurance Corporation
Amount: JPY500m
Facility: Non-Call 16 months Constant Maturity Swap Linked Note

Launch Date: 15 March 2010
Pricing Date: 15 March 2010
Settlement Date: 25 March 2010
Maturity Date: 12 January 2028

Coupon: 2pct (For the first 10 months before switching to a semi-annual CMS Linked structured coupon).
• The proceeds were swapped to floating rate USD at a sub 3-month LIBOR margin.

This week RBA decided to lift cash rate by 25 basis points from 3.75pct to 4pct. We also saw a string of Kangaroo issuance, along with Eurobonds from local issuers.

Week of Kangaroos

ANZ has appointed Steve Bellotti as Global Markets Managing Director, starting from Mar 1, reporting to Shayne Elliott, CEO Institutional.

Bellotti, 48, will be based in Sydney and lead the team for foreign exchange, capital markets, interest rates, commodities and derivatives, as well as specialist research and risk management.


Bellotti succeeds Gilles Plante who was appointed ANZ’s CEO North East Asia, Europe & America in December 2009.



What a quiet week due to holidays in China and the US. However, we saw the third government guaranteed issue since the announcement of the withdrawn of the wholesale bank funding guarantee, a highlight $2bn 5yr transaction from ING last Thursday.

ING A$2bn 5yr GG Bond

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.

ANZ JPY50bn min Samurai
ANZ is going to be the second Samurai issuer from Australia in 2010 after its 3-day investor roadshow in Tokyo ended last Friday. It completed the book building process last week for the issuance of a benchmarking size (JPY50bn min) Samurai to be priced this Wednesday. One of the joint leads said that the bank will issue a 5-year fixed rate tranche and a 5-year floating rate tranche, as well as a possible 7-year tranche, following Westpac’s step in January.

ANZ’s coming Samurai Westpac Jan 15 Samurai
Total Amount JPY50bn Min JPY111.3bn

Westpac raises US$2bn 144a USPP

Westpac has sold US$2 billion extendable bonds in the U.S. market. A spokesperson from Westpac told Insto that the private placement was launched a week ago and will settle tomorrow. Details are:
 

Initial Maturity: 14 Jan 2011
Final Maturity: 15 Jan 2015
Launch Date: 15 Dec 2009
Settlement Date: 22 Dec 2009
Issue Price: 100
The coupon is reset quarterly against benchmark US 3-month Libor. The spread is reset annually.