insto - Australian financial markets

EIB prices A$600m Aug 2020 Kangaroo increase.

The European Investment Bank priced a A$600 million increase to its 6 August 2020 Kangaroo.

The coupon is 6 percent and the tap takes the program to A$1.6 billion. EIB is rated AAA.
The bond was sold at a yield of 5.715 percent and the intiial launch size was A$500 million.

Lead managers for the deal are UBS, RBC Capital Markets and TD Securities.
 

Bank of America prices A$1.2bn 3-year Kangaroo

Bank of America Corporation has priced a A$1.2 billion 3-year fixed and floating rate Kangaroo, the first off its Australian and New Zealand MTN program announced July 2010, lead manager ANZ said. Details are as follows:

Fixed
Amount: A$900 million
Coupon: 6.75 percent
Yield: 6.84 percent
Maturity: 9 September 2013

FRN
Amount: A$300 million
Coupon: 210 basis points over BBSW
Maturity: 9 September 2013

Credit Suisse Sydney prices A$600m Sept 2015 domestic FRN

Credit Suisse AG Sydney branch has priced an A$600 million 8 September 2015 domestic floating rate note issue at 158 basis points over BBSW, a joint lead manager told Insto.

The lead manager said the borrower had taken advantage of strong demand to tighten the pricing from initial guidance of 160 basis points, and increase the issue size from its initial A$500 million.

Credit Suisse Sydney branch is rated A+, Aa1 and AA- by S&P, Fitch and Moody’s. Lead managers were CBA, Credit Suisse and NAB.

Suncorp-Metway announced at full-year net profit of A$780 million, representing a strong year-on-year increase of A$432 million.  The insurance-banking giant, previously one of the most troubled of the large local financial institutions during the GFC, benefited from solid returns in its core insurance business, but its bank operations remain weak.

Westpac chief economist Bill Evans says investors have overdone the Australian bond market rally, which he says has created a 50 percent probability of an RBA rate CUT by the end of the year.

Westpac prices 5-yr JPY65 billion fixed/floating Samurai

Westpac has priced a 5-year JPY65 billion Samurai issue, with the floating rate tranche fetching 3-month Yen Libor + 65 basis points and the fixed rate tranche issuing at Yen swap +50 basis points for a coupon of 1.07 percent, a market participant said.

The issue was initially to be JPY50 billion, but was capped at JPY65 billion by the issuer, although there appeared to be unmet demand, the market participant said.

The issue was joint lead-managed by Citigroup, Daiwa Securities and Nomura.

National Wealth Management prices 5-year A$130m senior FRN

National Wealth Management has priced a A$130m senior FRN of its MTN program at 220 basis points over 3-month BBSW, lead manager NAB said. Details are as follows:

Issuer: National Wealth Management Holdings Limited
Rating: AA- (S&P)
Instrument: Floating Rate Notes
Issue amount: A$130 million
Coupon: 3 month BBSW +2.20%
Settle: 31 August 2010
Mature: 31 August 2015
Lead Manager: NAB
 

Rabobank Aus branch adds A$50m to July 2014 EMTN

Rabobank Nederland (Australia branch) issued a A$50 million increase to its 28 July 2014 EMTN program, taking it to A$150 million. The issuer is rated AAA (S&P) and Aaa (Moody’s). Lead managers are Rabobank International and TD Securities. Details are as follows:

Amount: A$50 million
Coupon: 5.75 percent
Issue price: 102.115 percent + 37 days accrued interest
Maturity: 28 July 2014

(Adds EMTN fact.)

BNP prices A$250m August 2013 tap

BNP Paribas has increased the fixed component of its August 2013 program by A$250 million. The total program is A$1.25 billion; the total fixed component of the program is A$700 million.

The fixed coupon is 6 percent.

BNP is rated AA (S&P) Aa2 (Moody’s) and AA- (Fitch). Lead managers for the deal are BNP Paribas, ANZ and RBC Capital Markets. The initial A$1bn issue, priced 5 August, was split A$550m FRN at 3-month BBSW+105bps, A$450m fixed at 6 percent.
 

QBE has set its sights on growth through offshore acquisitions to improve returns and offset its low risk investment strategy, CEO Frank O’Halloran said this week.

QBE’s half year profits were down by 39 percent to US$440 million (A$490 million) following substantially smaller returns from its low risk cash and fixed income investment portfolio, the insurance company said.