Tuesday 17 October 2017 by FIIG Research New issues list

New Issues

New issues for the period 10 October – 17 October 2017 including: ADB, ADCB, Auckland Airport, Citigroup, EDC, Heritage Bank, KfW, QTC, Resimac, Spark Finance and UED

Abu Dhabi Commercial Bank (ADCB)

ADCB issued a new A$400m triple tranche kangaroo bond on 16 October 2017.

Five-year FRN
Volume: A$150m
Total outstanding in the line: A$150m
Coupon rate: 3m BBSW +138bps
Issue/re-offer price: par
Margin to swap: 138bps/3m BBSW
Maturity date: 25 October 2022

Five year fixed
Tranche year: 2022
Volume: A$100m
Total outstanding in the line: A$100m
Coupon yield: 3.75%
Issue/re-offer price: 99.74%
Issue yield: 3.8075%
Margin to swap: 138bps/s-q
Maturity date: 25 October 2022

10 year fixed
Volume: A$150m
Total Outstanding in the line: A$150m
Coupon rate: 4.5%
Issue/re-offer price: 99.602%
Issue yield: 4.55%
Margin to swap: 170bps/s-q
Maturity date: 25 October 2027

Asian Development Bank (ADB)

ADB priced an increase to its 2027 kangaroo bond on 12 October 2017.

Volume: A$150m
Total outstanding in the line: A$800m
Coupon type: fixed
Coupon rate: 3.4%
Issue/re-offer price: 100.877% (plus 0.404% accrued)
Issue yield: 3.295%
Margin to swap: 45bps/s-q
Margin to ACGB: 53.5/April 2027
Maturity date: 10 September 2027

Auckland International Airport (Auckland Airport)

Auckland Airport priced an increase to its 2027 kangaroo bond on 13 October 2017.

Volume: A$110m
Total outstanding in the line: A$260m
Coupon type: fixed
Coupon rate: 4.5%
Issue/re-offer price: 104.145% (plus 0.323% accrued)
Issue yield: 3.99%
Margin to swap: 118bps/s-q
Maturity date: 23 September 2027

Citigroup (Citi)

Citi issued a new, A$1.631bn Securitised Australian Mortgage Trust 2017-1 on 12 October 2017. 

Note class Tranche volume (A$m) Tranche rating Weighted average life (years)  Margin to swap (bps/1m BBSW) Initial credit support 
A 1500 AAA/Aaa 2.6 97  8%
AB 49 AAA/NR 7.8 ND 5%
B 82 NR/NR 7.8 ND  N/A


Export Development Canada
(EDC)

EDC issued a new, A$550m five year kangaroo bond on 12 October 2017.

Volume: A$550m
Total outstanding in the line: A$550m
Coupon type: fixed
Coupon rate: 2.7%
Issue/re-offer price: 99.768%
Issue yield: 2.75%
Margin to swap: 32bps/s-q
Margin to ACGB: 43bps/July 2022
Maturity date: 24 October 2022

Heritage Bank

Heritage Bank issued a new, A$750m HBS Trust 2017-1 on 11 October 2017. 

Note class Tranche volume (A$m) Tranche rating Weighted average life (years) Margin to swap (bps/1m BBSW) Initial credit support
A1 690 AAA/AAA 3.3 107 8%
A2 22.5 AAA/AAA 3.3 120 5%
AB 19.125 AAA/AAA 6.5 160 2.45%
B 10.875 AA/NR 6.5 200 1%
C 6 A+/NR 6.5 285 0.2%
D 1.5 NR/NR 6.5 590 N/A

KfW Bankengruppe (KfW)

KfW priced an increase to its 2022 kangaroo bond on 11 October 2017.

Volume: A$350m
Total outstanding in this line: A$2.25bn
Coupon type: fixed
Coupon rate: 5.5%
Issue/re-offer price: 111.632% (plus 1.06% accrued)
Issue yield: 2.625%
Margin to swap: 31bps/s-q
Margin to ACGB: 29.25bps/July 2022
Maturity date: 9 February 2022

Queensland Treasury Corporation (QTC)

QTC issue a new, A$1.75bn syndicated benchmark on 12 October 2017.

Volume: A$1.75bn
Total outstanding in this line: A$1.75bn
Coupon type: fixed
Coupon rate: 3.5%
Issue/re-offer price: 98.874%
Issue yield: 3.61%
Margin to ACGB: 68.5bps/April 2029
Margin to EFP: 75bps
Maturity date: 21 August 2030       

Resimac

Resimac’s nonconforming residential mortgage backed securities transaction, Resimac Bastille Trust Series 2017-1, progressed to launch on 16 October 2017.

The potential deal structure is as follows:

Tranche Indicative volume (A$m) Expected rating (Moody's/Fitch) Weighted average life (years) Credit enhancement (per cent) Price guidance (bps/1m BBSW)
A1 350 Aaa/AAA 2 30 130 area
A2 75 Aaa/AAA 2 15 190 area
B 39 Aa2/NR 3.4 7.2 215-220 area
C 9.5 A2/NR 3.4 5.3 310 area
D 9.5 Baa2/NR 3.4 3.4 410 area
E 6 Ba2/NR 3.4 2.2 610 area
F 5.5 B2/NR 2.6 1.1 710 area
G 5.5 NR/NR 4 NA ND

Source: National Australia Bank 

Spark Finance
(Spark)

Spark issued a new A$150m debut kangaroo bond on 12 October 2017.

Volume: A$150m
Total outstanding in the line: A$150m
Coupon type: fixed
Coupon rate: 4%
Issue/re-offer price: 98.964% 
Issue yield: 4.1275%
Margin to swap: 125bps/s-q
Maturity date: 20 October 2027

United Energy Distribution (UED)

UED issued a new, A$170m seven year domestic bond on 12 October 2017.

Volume: A$170m
Total outstanding in the line: A$170m
Coupon type: fixed
Coupon rate: 3.85%
Issue/re-offer price: 99.696%
Issue yield: 3.9%
Margin to swap: 125bps/s-q
Maturity date: 23 October 2024


Source: KangaNews

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