Tuesday 10 October 2017 by FIIG Research New issues list

New Issues

New issues for the period 3 October 2017 – 10 October 2017 including: AfDB, Alberta, Heritage Bank and Resimac

African Development Bank (AfDB)

AfDB priced an increase to its 2027 kangaroo bond on 6 October 2017.

Volume: A$30m
Total outstanding in the line: A$440m
Coupon type: fixed
Coupon rate: 3.30%
Issue/re-offer price: 99.852% (plus 0.699% accrued)
Issue yield: 3.3175%
Margin to ACGB: 55.75bps/April 2027
Maturity date: 27 July 2027

Heritage Bank

Heritage Bank launched an indicative residential mortgage backed securities transaction, HBS Trust 2017-1 on 9 October 2017. The forthcoming deal is expected to price on or before 11 October.

The potential deal structure is as follows:

Class Volume (A$m) Expected ratings (S&P/Fitch) Weighted average life (years) Official price guidance (bps/1m BBSW) Initial price guidance (bps/1m BBSW)
A1 460 AAA/AAA 3.3 110 area 110 area
A2 15 AAA/AAA 3.3 125-130 area 130-135 area
AB 12.75 AAA/AAA 6.5 160-165 area 160-165 area
B 7.25 AA/NR 6.5 205-210 area 210-215 area
C 4 A+/NR 6.5 290-295 area 295-300 area
D 1 NR/NR 6.5 590 area 590-600 area

Source: National Australia Bank 

Province of Alberta (Alberta)

Alberta issued a new, A$300m in a dual tranche kangaroo bond on 4 October 2017.

2026 tap
Volume: A$50m
Total outstanding in this line: A$250m
Coupon type: fixed
Coupon rate: 3.10%
Issue/re-offer price: 96.461% (plus 1.008% accrued)
Issue yield: 3.555%
Margin to swap: 72bps/s-q
Margin to ACGB: 84.25bps/April 2026
Maturity date: 14 December 2026

2028 new line
Volume: A$250m
Total outstanding in this line: A$250m 
Coupon type: fixed
Coupon rate: 3.60%
Issue/re-offer price: 99.502% 
Issue yield: 3.6575%
Margin to swap: 75bps/s-q
Margin to ACGB: 81bps/May 2028
Maturity date: 11 April 2028


Resimac disclosed price guidance on its forthcoming issue of nonconforming residential mortgage backed securities, Resimac Bastille Trust Series 2017-1 on 9 October 2017.

The indicative deal structure and pricing is as follows:

Tranche Indicative volume (A$m) Expected rating (Moody's/Fitch) Weighted average life (years)  Price guidance (bps/1m BBSW)
A1 350 Aaa/AAA 2 130 area
A2 75 Aaa/AAA 2 190-195 area
B 39 Aa2/NR 3.4 low-mid 200s area
C 9.5 A2 3.4 low 300s area
D 9.5 Baa2 3.4 low 400s area
E 6 Ba2 3.4 low 600s area
F 5.5 B2 2.6 low 700s area

Source: National Australia Bank

Source: KangaNews

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