Tuesday 13 March 2018 by FIIG Research New issues list

New Issues

New issues for the period 7 March – 13 March 2018 including: DBS, Firstmac, IADB, IFC, Manitoba, Macquarie, MyState, NAB, Pepper, Rentenbank, TD Bank

DBS Group Holdings

DBS issued a new, A$750m Tier 2 kangaroo floating rate note on 7 March 2018.

Volume: A$750m
Total outstanding in the line: A$750m
Coupon type: FRN
Coupon rate: 3m BBSW +158bps
Issue/re-offer price: par
Margin to swap: 158bps/3m BBSW
Maturity date: 16 March 2028

Firstmac

Firstmac issued a new, A$600m residential mortgage backed transaction, the Firstmac Mortgage Funding Trust No. 4 Series 1-2018, on 9 March 2018.

Tranche Tranche volume Tranche rating (S&P/Fitch) Weighted average life  Margin to swap  Initial credit support 
A1-U US$180m AAA/AAA 2 years 80bps/1m Libor 15%
A1-A A$201.6m AAA/AAA
3 years 130bps/1m BBSW 15%
A1-B A$78m
AAA/AAA
5 years 150bps/1m BBSW  15%
A2 A$60m
AAA/NR 4.2 years ND 5%
B A$15m
AA/NR
5.5 years ND
2.5%
C A$6m
A/NR  5.5 years
ND
1.5%
D A$2.7m
BBB/NR 5.5 years
ND  1.05%
E A$2.7m
BB/NR 5.5 years
ND
0.6%
F A$3.6m
NR/NR 7 years ND
N/A

Source: KangaNews

Inter-American Development Bank (IADB)

IADB priced an increase to its 2028 kangaroo bond on 7 March 2018.

Volume: A$90m
Total outstanding in the line: A$340m
Coupon type: fixed
Coupon rate: 3.1%
Issue/re-offer price: 98.797%
Issue yield: 3.2425%
Margin to swap: 41.5bps/s-q
Margin to ACGB: 45bps/May 2028
Maturity date: 22 February 2028

International Finance Corporation (IFC)

IFC issued a new, A$300m inaugural kangaroo social bond on 6 March 2018.

Volume: A$300m
Total outstanding in the line: A$300m
Coupon type: fixed
Coupon rate: 2.7%
Issue/re-offer price: 2.73% 
Issue yield: 99.861%
Margin to swap: 30bps/s-q
Margin to ACGB: 34bps/April 2023
Maturity date: 15 March 2023

Funds from the transaction, IFC’s first kangaroo social bond, are earmarked for lending projects within the fields of “banking on women eligible projects” and “inclusive business eligible projects”.

Province of Manitoba (Manitoba)

Manitoba priced an increase to its 2028 kangaroo bond on 5 March 2018.

Volume: A$50m
Total outstanding in the line: A$115m
Coupon type: fixed
Coupon rate: 3.5%
Issue/re-offer price: 101.468%
Issue yield: 3.3325%
Margin to swap: 55bps/s-q
Margin to ACGB: 59bps/May 2028
Maturity date: 22 August 2028

Macquarie Bank (Macquarie)

Macquarie priced an increase to its 2019 domestic bond on 5 March 2018.

Volume: A$25m
Total outstanding in this line: A$125m
Coupon type: FRN
Coupon rate: 3m BBSW +45bps
Issue/re-offer price: 100.019% (plus 0.474%)
Margin to swap: 44bps/3m BBSW
Maturity date: 21 June 2019

MyState Bank (MyState)

MyState began taking indications of interest for a potential residential mortgage backed securities transaction, the ConQuest 2018-1, on 12 March 2018. Indicative total volume for the deal is A$400m.

The ConQuest 2018-1 indicative price guidance and structure is as follows:

Tranche Volume Expected rating (S&P/Fitch) Credit enhancement  Weighted average life  Indicative price guidance (bps/1m BBSW)
A1 A$368m AAA/AAA 8% 2.9 years 103 area
A2 A$12m AAA/AAA
5% 5.2 years 140 area
AB A$9.2m
AAA/NR
2.7% 5.2 years 165 area
B A$6.2m
AA/NR
1.15% 5.2 years
low 200s area
C A$3.8m
A/NR
0.2% 5.2 years
300 area
D A$0.8m
NR/NR N/A 5.2 years
high 500s area

Source: KangaNews

National Australia Bank (NAB)

NAB issued a new, A$1.5bn multi tranche domestic covered bond on 7 March 2018.

Five-year FRN
Volume: A$1.05bn
Total outstanding in the line: A$1.05bn
Coupon rate: 3m BBSW +65bps
Issue/re-offer price: par
Margin to swap: 65bps/3m BBSW
Maturity date: 16 March 2023

Five-year fixed-rate
Volume: A$325m
Total outstanding in the line: A$325m
Coupon rate: 3%
Issue/re-offer price: 99.678%
Issue yield: 3.07%
Margin to swap: 65bps/s-q
Maturity date: 16 March 2023

10-year fixed-rate
Volume: A$125m
Total outstanding in the line: A$125m
Coupon rate: 3.6%
Issue/re-offer price: 99.336%
Issue yield: 3.68%
Margin to swap: 85bps/s-q
Maturity date: 16 March 2028

Pepper Group (Pepper)

Pepper priced a refinancing of the Class AR-U notes in its PRS Trust No. 16 on 7 March 2018.

Note class: AR-U
Tranche volume: A$124m
Tranche rating: AAA/AAA
WAL: 1.8 years
Margin to swap: 105bps/1m BBSW 
Initial credit support: 47.2%

Rentenbank

Rentenbank priced an increase to its 2028 kangaroo bond on 6 March 2018.

Volume: A$50m
Total outstanding in the line: A$625m
Coupon type: fixed
Coupon rate: 3.25%
Issue/re-offer price: 99.87%
Issue yield: 3.265%
Margin to swap: 43bps/s-q
Margin to ACGB: 46.25bps/May 2028
Maturity date: 12 April 2028

Toronto Dominion Bank (TD)

TD issued a new, A$200m one year kangaroo floating rate note on 6 March 2018.

Volume: A$200m
Total outstanding in the line: A$200m
Coupon type: FRN
Coupon rate: 3m BBSW +35bps
Issue/re-offer price: par
Margin to swap: 35bps/3m BBSW
Maturity date: 13 March 2019

TD priced an increase to its 2019 kangaroo floating rate note on 8 March 2018.

Volume: A$100m
Total outstanding in the line: A$300m
Coupon type: FRN
Coupon rate: 3m BBSW +35bps
Issue/re-offer price: par
Margin to swap: 35bps/3m BBSW
Maturity date: 13 March 2019

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.