insto - Australian financial markets

 Westpac is poised to bolster its exposure to the fast-growing Islamic finance market by offering a commodity-trading facility aimed at overseas investors that operates under the principles of Islamic law.

Westpac priced a $2 billion RMBS, known as the Series 2009-1 WST Trust, on 18 December. Originally launched for just A$1bn on 14 December, this was the first RMBS issued by a major Australian bank since the GFC pushed structured finance deals off the radar of all banks. The $1.84 billion Class A notes comprise the second largest AAA tranche ever been launched in the Australian market.

Details are:

• Total Amount: A$2bn
• Pricing Date: 18 Dec 2009
• Settlement Date: 23 Dec 2009

Class A Notes

Westpac has launched $1 billion RMBS, known as the Series 2009-1 WST Trust. It is the first RMBS issue by a major Australian bank since the GFC. The RMBS issue is only available to institutional investors and will consist of:

• A$920m of Class A Notes expected to be rated AAA/Aaa
• A$55m of Class B Notes expected to be rated AA/Aa1
• A$25m of Class C Notes will be unrated
Class A notes will benefit from 8% subordination provided by the Class B and C notes.

Westpac has printed US$3 billion dual part Australian government guaranteed 3 year 144a Reg S notes. The deal was announced Monday morning NY time and priced that afternoon.

Lead managers were Bank of America/Merrill Lynch and JP Morgan.

The global banking industry has recovered half of the market cap lost since the pre-crisis peak of $US9.7 trillion in October 07, reports the Boston Consulting Group. Market cap has doubled in the past seven months from a low of $US3.1 trillion in February 2009 to $US6.2 trillion at the end of September 2009.

While many companies are reluctant to admit their potential greenhouse gas costs, the number of institutional investors seeking this information has spiked, repots Bernard Kellerman.

The Carbon Disclosure Project has evolved as the pre-eminent mechanism for communication between companies and investors on climate change and carbon exposure issues. It has been run globally for 7 years, but for the fourth year has been expanded to cover the top 200 Australian and top 50 New Zealand companies.

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

Mortgage finance lender FirstMac today (10 November) successfully upsized, placed and priced an RMBS deal with the support of the AOFM. The transaction was initially launched at A$400 million but was increased to A$470 million following greater than anticipated investor bids.

The FirstMac 2-2009 placement, arranged by HSBC Bank, includes A$215.14 million from the AOFM as a cornerstone investor, with A$254.86 million provided by an additional six domestic investors.

The ABS markets have been dormant for a year, cutting off funding to niche lenders. But were obituaries for Australia’s non-bank mortgage originators written prematurely, asks Lachlan Colquhoun.

Several September deals have encouraged issuers and also investors to think there is life in the assetbacked securitisation markets yet. These may be only stirrings, but among issuers at least there is a consensus that the next 12 months will be an improvement on the last period of darkness.