Tuesday 13 February 2018 by FIIG Research New issues list

New Issues

New issues for the period 7 February – 13 February 2018 including: AfDB, AOFM, AusNet, Bluestone, BNG, CCB, CBA, NWB, Manitoba, NAB, Westpac, World Bank

African Development Bank (ADB)

ADB priced an increase to its 2028 kangaroo bond on 8 February 2018.

Volume: A$30m
Total outstanding in the line: A$410m
Coupon type: fixed
Coupon rate: 3.35%
Issue/re-offer price: 99.758%
Issue yield: 3.3775%
Margin to swap: 44bps/s-q
Margin to ACGB: 51bps/May 2028
Maturity date: 8 August 2028

Australian Office of Financial Management (AOFM)

On 7 February 2018, AOFM revealed its 11th residential mortgage backed securities (RMBS) auction, to be held on 22 February 2018. The auction includes five tranches of RMBS with original face value of A$1.2bn, representing the entirety of the AOFM’s remaining RMBS portfolio.

AOFM RMBS auction 11 securities:

Security Sponser AOFM holding original face value  AOFM reserve price 
Idol 2010-1 A2 ING Bank A$62m 100.18
SMHL 2011-2 A ME Bank A$175.2m
100.14
SMHL 2012-1 A3 ME Bank A$123.5m
100.52
Torrens 2010-2 A4 Bendigo and Adelaide Bank A$476.5m
100.12
Torrens 2010-3 A5 Bendigo and Adelaide Bank
A$395m
100.14
Source: KangaNews

AusNet Services (AusNet)

AusNet issued a new, A$500m 10.5 year domestic bond on 9 February 2018.

Volume: A$500m
Total outstanding in the line: A$500m
Coupon type: fixed
Coupon rate: 4.2%
Issue/re-offer price: 99.811%
Issue yield: 4.2225%
Margin to swap: 130bps/s-q
Maturity date: 21 August 2028

Bluestone Group (Bluestone)

Bluestone began taking indications of interest on a potential residential mortgage backed securities transaction, Sapphire XVIII 2018-1. The publicly offered tranches have indicative total volume of A$214m. The Class B, Class C, Class D and Class E notes have been preplaced.

Sapphire XVII 2018-1 indicative structure and price guidance is as follows: 

Tranche Indicative volume Expected rating Weighted average life  Indicative price guidance (bps/1m BBSW)
A1 A$125m Aaa 2.1 years 120 area
A2 A$50m
Aaa 2.1 years 160-165 area
A3 A$29m
Aaa 2.1 years 180-185 area
F A$2.5m
B2 3.6 years 710-715 area
G A$1.5m
NR 2.3 years 1,050-1,100 area
X1 A$6m
NR 1 year 9% area
Source: KangaNews

BNG Bank (BNG)

BNG priced an increase to its 2028 kangaroo bond on 7 February 2018.

Volume: A$35m
Total outstanding in the line: A$665m
Coupon type: fixed
Coupon rate: 3.3%
Issue/re-offer price: 98.501%
Issue yield: 3.4725%
Margin to swap: 54bps/s-q
Margin to ACGB: 61bps/May 2028
Maturity date: 17 July 2028

BNG priced an increase to its 2028 kangaroo bond on 9 February 2018.

Volume: A$50m
Total outstanding in this line: A$715m
Coupon type: fixed
Coupon rate: 3.3%
Issue/re-offer price: 98.76%
Issue yield: 3.4425%
Margin to swap: 53bps/s-q
Margin to ACGB: 59bps/May 2028
Maturity date: 17 July 2028

China Construction Bank Sydney Branch (CCB)

CCB issued a new, A$150m domestic floating rate note on 8 February 2018.

Volume: A$150m
Total outstanding in the line: A$150m
Coupon type: FRN
Coupon rate: 3m BBSW +55bps
Issue/re-offer price: par
Margin to swap: 55bps/3m BBSW
Maturity date: 14 February 2019

Commonwealth Bank of Australia (CBA)

CBA launched the refinancing of the Class A3-R notes of its prime residential mortgage backed securities transaction, Medallion 2013-1. The notes have indicative volume of A$250m. The self led deal is expected to price on or before 16 February.

The Medallion 2013-1 A3-R indicative price guidance is as follows:

Class Volume Expected ratings Weighted average life  Credit enhancement  Indicative price (bps/1m BBSW)
A3-R A$250m AAA/AAA 3.2 years 16.3% 80-85 area
Source: KangaNews

National Australia Bank (NAB)

NAB priced an increase to its residential mortgage backed securities transaction, NRMBS 2018-1, on 8 February 2018. 

Note class Tranche volume Tranche rating Weighted average life Margin to swap  Initial credit support 
A1-A A$1.54bn Aaa/AAA 3 years 85bps/1m BBSW 8%
A2-G A$300m
Aaa/AAA
3 years 85bps/1m BBSW  8%
A2 A$70m
Aaa/AAA
5.7 years 120bps/1m BBSW
4.5%
B A$46m
Aa2/NR 5.7 years
170bps/1m BBSW
2.2%
C A$16m
A2/NR 5.7 years
220bps/1m BBSW
1.4%
D A$14m
Baa2/NR 5.7 years
320bps/1m BBSW
0.7%
E A$8m
Ba2/NR 5.7 years
445bps/1m BBSW
0.3%
F A$6m
NR/NR 5.7 years
575bps/1m BBSW
n/a
Source: KangaNews

NWB Bank (NWB)

NWB priced an increase to its 2028 kangaroo bond on 8 February 2018.

Volume: A$45m
Total outstanding in the line: A$215m
Coupon type: fixed
Coupon rate: 3.45%
Issue/re-offer price: 99.825%
Issue yield: 3.47%
Margin to swap: 54bps/s-q
Margin to ACGB: 60.75bps/May 2028
Maturity date: 17 July 2028

Province of Manitoba (Manitoba)

Manitoba priced an increase to its 2027 kangaroo bond on 9 February 2018.

Volume: A$35m
Total outstanding in the line: A$260m
Coupon type: fixed
Coupon rate: 3.6%
Issue/re-offer price: 101.671% 
Issue yield: 3.3925%
Margin to swap: 55bps/s-q
Margin to ACGB: 58.75bps/April 2027
Maturity date: 17 August 2027

Manitoba priced an increase to its 2027 kangaroo bond on 12 February 2018.

Volume: A$15m
Total outstanding in the line: A$275m
Coupon type: fixed
Coupon rate: 3.6%
Issue/re-offer price: 101.326%
Issue yield: 3.435%
Margin to swap: 55bps/s-q
Margin to ACGB: 59bps/April 2027
Maturity date: 17 August 2027

Westpac Banking Corporation (WBC)

WBC issued a new, A$150m domestic Tier 2 bond on 7 February 2018.

Volume: A$150m
Total outstanding in the line: A$150m
Coupon type: FRN
Coupon rate: 3m BBSW +140bps
Issue/re-offer price: par
Margin to swap: 140bps/3m BBSW
Maturity date: 16 February 2028

WBC priced an increase to its domestic Tier 2 bond on 8 February 2018.

Volume: A$75m
Total outstanding in this line: A$225m
Coupon type: FRN
Coupon rate: 3m BBSW +140bps
Issue/re-offer price: par
Margin to swap: 140bps/3m BBSW
Maturity date: 16 February 2028

WBC priced an increase to its domestic tier two bond on 9 February 2018.

Volume: A$25m
Total outstanding in the line: A$250m
Coupon type: FRN
Coupon rate: 3m BBSW +140bps
Issue/re-offer price: par
Margin to swap: 140bps/3m BBSW
Maturity date: 16 February 2023

World Bank

World Bank issued a new, A$500m 10.5 year kangaroo bond on 6 February 2018.

Volume: A$500m
Total outstanding in the line: A$500m
Coupon type: fixed
Coupon rate: 3.3%
Issue/re-offer price: 99.846%
Issue yield: 3.3175%
Margin to swap: 42bps/s-q
Margin to ACGB: 48.75bps/May 2028
Maturity date: 14 August 2028

Source: KangaNews


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