Tuesday 24 October 2017 by FIIG Research New issues list

New Issues

New issues for the period 17 October – 24 October 2017 including: AFDB, AOFM, Deustche Bahn, KfW, Kiwibank, Nissan, NSW Treasury Corp, OKB, Pepper, RBC Sydney, Rentenbank and Resimac

African Development Bank (AFDB)

AFDB priced an increase to its 2027 kangaroo bond on 17 October 2017.

Volume: A$30m
Total outstanding in this line: A$470m
Coupon type: fixed
Coupon rate: 3.3%
Issue/re-offer price: 100.329% (plus 0.798% accrued)
Issue yield: 3.26%
Margin to swap: 47bps/s-q
Margin to ACGB: 54.75bps/April 2027
Maturity date: 27 July 2027

Australian Office of Financial Management (AOFM)

AOFM priced an increase to its 2047 syndicated benchmark bond on 17 October 2017.

Volume: A$2.1bn
Total outstanding in the line: A$10.2bn
Coupon type: fixed
Coupon rate: 3%
Issue/re-offer price: 89.756% (plus 0.273% accrued)
Issue yield: 3.565%
Margin to EFP: 76bps
Maturity date: 21 March 2047

Deutsche Bahn Finance (DB)

DB issued a new, A$150m fifteen year kangaroo bond on 23 October 2017.

Volume: A$150m
Total outstanding in the line: A$150m
Coupon type: fixed
Coupon rate: 4.05%
Issue/re-offer price: 99.922%
Issue yield: 4.057%
Margin to swap: 98bps/s-q
Margin to ACGB: 98bps/April 2033
Maturity date: 27 October 2032

KfW Bankengruppe (KfW)

KfW priced an increase to its 2020 kangaroo green bond on 18 October 2017.

Volume: A$200m
Total outstanding in this line: A$1bn
Coupon type: fixed
Coupon rate: 2.4%
Issue/re-offer price: 100.485%
Issue yield: 2.2125%
Margin to swap: 14bps/s-q
Margin to ACGB: 24.25bps/April 2020
Maturity date: 2 July 2020

Kiwibank

Kiwibank issued a new, A$150m ten year kangaroo bond on 20 October 2017.

Volume: A$150m
Total outstanding in the line: A$150m
Coupon type: fixed
Coupon rate: 4.25%
Issue/re-offer price: 98.936%
Issue yield: 4.3825%
Margin to swap: 155bps/s-q
Margin to ACGB: 160.75bps/November 2027
Maturity date: 27 October 2027

Nissan Financial Services Australia (Nissan)

Nissan issued a new, $100m one year domestic bond on 17 October 2017.

Volume: A$100m
Total outstanding in the line: A$100m
Coupon type: FRN
Coupon rate: 3m BBSW + 40bps
Issue/re-offer price: par
Margin to swap: 40bps/3m BBSW
Maturity date: 23 October 2018

Oesterreichische Kontrolbank (OKB)

OKB priced an increase to its 2027 domestic bond on 17 October 2017. 

Volume: A$30m
Total outstanding in the line: A$55m
Coupon type: fixed
Coupon rate: 3.5%
Issue/re-offer price: 100.698%
Issue yield: 3.415%
Margin to swap: 63bps/s-q
Margin to ACGB: 70.25bps/April 2027
Maturity date: 17 October 2027

Pepper Australia (Pepper)

On 23 October 2017, Pepper opened the books on the Class A1-S and Class B notes of its new residential mortgage backed securities issue, Pepper Residential Securities Trust No. 19 (PRS19). The total deal is an equivalent of A$600m according to its institutional arrangers.

The PRS19 indicative price guidance and structure is as follows:

Class Indicative volume (m) Expected rating (S&P/Moody's) Weighted average life (years) Indicative price guidance (bps/1m BBSW)
A1-S A$100  AAA/Aaa   0.3  68
A1-u1 US$250 A-1+/P-1 0.9 ND
A2 A$75 AAA/Aaa 2.6 170 area
B A$57 NR/Aa2 3.8 200-210 area
C A$12 NR/A2 3.8 ND
D A$13.8 NR/Baa2 3.8 ND
E A$10.2 NR/Ba2 3.6 ND
F A$6 NR/B2 2.6 ND
G A$6 unrated 4.9 ND

Source: National Bank Australia

Rentenbank

Retenbank priced an increase to its 2028 kangaroo bond on 18 October 2017.

Volume: A$75m
Total outstanding in the line: A$175m
Coupon type: fixed
Coupon rate: 3.25%
Issue/re-offer price: 99.647% (plus 0.116% accrued)
Issue yield: 3.29%
Margin to swap: 49bps/s-q
Margin to ACGB: 52.75bps/May 2028
Maturity date: 12 April 2028

Resimac

Resimac issued a new, A$750m nonconforming residential mortgage backed security on 19 October 2017. 

Note class Tranche volume Tranche weighting Weighted average life (years)  Margin to swap  Initial credit support 
A1 A$525m   Aaa/AAA  2.1  127bps/1m BBSW  30%
A2 A$112.5m Aaa/AAA 2.1 185bps/1m BBSW
15%
B A$58.5m Aa2 3.5 210bps/1m BBSW
7.2%
C A$14.25m A2 3.5 300bps/1m BBSW
5.3%
D A$14.25m Baa2 3.5 400bps/1m BBSW
3.4%
E A$9m Ba2 3.5 600bps/1m BBSW
2.2%
F A$8.25m B2 4.1 710bps/1m BBSW
1.1%
G A$8.25m NR 4.1 ND N/A

 

Royal Bank of Canada Sydney (RBC Sydney)

RBC Sydney issued a new, A$250m domestic bond on 19 October 2017.

Volume: A$250m
Total outstanding in the line: A$250m
Coupon type: FRN
Coupon rate: 3m BBSW +30bps
Issue/re-offer price: par
Margin to swap: 30bps/3m BBSW
Maturity date: 26 October 2018

New South Wales Treasury Corporation (TCorp)

TCorp issued a new, A$1.1bn syndicated benchmark bond on 18 October 2017.

Volume: A$1.1bn
Total outstanding in the line: A$1.1bn
Coupon type: fixed
Coupon rate: 3%
Issue/re-offer price: 97.477% (plus 0.025% accrued)
Issue yield: 3.265%
Margin to EFP: 51bps
Margin to ACGB: 44.75bps/April 2029
Maturity date: 20 April 2029

Source: KangaNews

Get your free copy of The Benefits of Corporate Bonds eBook

Get a copy of The Benefits of Corporate Bonds eBook

Subscribe to The WIRE newsletter

Sign up to a free weekly newsletter to get the latest investment news.