Tuesday 27 March 2018 by FIIG Research New issues list

New Issues

New issues for the period 21 March – 27 March 2018 including: ADB, BOQ, Heritage, IADB, IAG, KBN, Latitude, La Trobe, Macquarie, NAB, NTTC, NWB, Pepper, Rentenbank, SEK, VPN, Volkswagen

Asian Development Bank (ADB)

ADB priced an increase to its 2028 kangaroo bond on 22 March 2018.

Volume: A$100m
Total outstanding in the line: A$700m
Coupon type: fixed
Coupon rate: 3.3%
Issue/re-offer price: 101.359%
Issue yield: 3.145%
Margin to swap: 41bps/s-q
Margin to ACGB: 47.25bps/May 2028
Maturity date: 8 August 2028

Bank of Queensland (BOQ)

BOQ priced an increase to its 2029 domestic floating rate note on 21 March 2018.

Volume: A$50m
Total outstanding in the line: A$600m
Coupon type: FRN
Coupon rate: 3m BBSW +115bps
Issue/re-offer price: 101.017%
Margin to swap: 62bps/3m BBSW
Maturity date: 29 April 2029

Heritage Bank (Heritage)

Heritage issued a new, A$200m three year domestic bond on 20 March 2018.

Volume: A$200m
Total outstanding in the line: A$200m
Coupon type: FRN
Coupon rate: 3m BBSW +123bps
Issue/re-offer price: par
Margin to swap: 123bps/3m BBSW
Maturity date: 29 March 2021

Insurance Australia Group (IAG)

IAG issued a new, A$350m domestic Tier 2 bond on 23 March 2018.

Volume: A$350m
Total outstanding in the line: A$350m
Coupon type: FRN
Coupon rate: 3m BBSW +210bps
Issue/re-offer price: par
Margin to swap: 210bps/3m BBSW
Maturity date: 15 June 2044

Inter-American Development Bank (IADB)

IADB priced an increase to its 2028 kangaroo bond on 20 March 2018.

Volume: A$200m
Total outstanding in the line: A$540m
Coupon type: fixed
Coupon rate: 3.1%
Issue/re-offer price: 99.575%
Issue yield: 3.15%
Margin to swap: 41bps/s-q
Margin to ACGB: 47.75bps/May 2028
Maturity date: 22 February 2028

Kommunalbanken Norway (KBN)

KBN priced an increase to its 2028 kangaroo bond on 23 March 2018.

Volume: A$100m
Total outstanding in the line: A$505m
Coupon type: fixed
Coupon rate: 3.4%
Issue/re-offer price: 101.26% (plus 0.601% accrued)
Issue yield: 3.255%
Margin to swap: 52bps/s-q
Margin to ACGB: 60.5bps/May 2028
Maturity date: 24 July 2028

Latitude Finance Australia (Latitude)

Latitude issued a new, A$500m asset backed securities transaction, the Latitude Australia Credit Card Loan Note Trust Series 2018-1, on 22 March 2018.

Tranche Tranche volume Tranche rating (S&P/Fitch) Weighted average life Margin to swap  Initial credit support 
A1 A$353.45m
AAA/AAA 5 years 110bps/1m BBSW
32.5%
A2 A$52.325m
AAA/NR 5 years
145bps/1m BBSW
22.5%
B A$28.8m
AA/NR 5 years
195bps/1m BBSW
17%
C A$26.175m
A/NR 5 years 225bps/1m BBSW
12%
D A$20.93m
BBB/NR 5 years
310bps/1m BBSW
8%
E A$18.32m
BB/NR 5 years
425bps/1m BBSW
4.5%

Source: KangaNews

La Trobe Financial (La Trobe)

La Trobe launched its first nonconforming residential mortgage backed securities transaction for 2018, the La Trobe Financial Capital Markets Trust 2018-1 (LFCMT 2018-1), on 26 March 2018. The transaction volume is A$500m with the potential to upsize to a maximum of A$750m.

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

Tranche Indicative volume Expected ratings Credit enhancement Weighted average life  Indicative price guidance (bps/1m BBSW)
A1S A$100m AAA/Aaa 30% 0.34 years 70 area
A1L A$250m
AAA/Aaa 30% 2.7 years 125 area
A2 A$89m
AAA/Aaa 12.2% 2.7 years 165 area
B A$20m
AA/NR 8.2% 3.7 years 200 area
C A$15.5m
A/NR 5.1% 3.7 years
305 area
D A$11m
BBB/NR 2.9% 3.7 years
405 area
E A$6.5m
BB/NR 1.6% 3.7 years
605 area
F A$4.5m
B/NR 0.7% 2.9 years 695 area
Equity A$3.5m
NR/NR N/A ND ND

Source: KangaNews

Macquarie Bank (Macquarie)

Macquarie issued a new, A$75m one year domestic floating rate note on 21 March 2018.

Volume: A$75m
Total outstanding in the line: A$75m
Coupon type: FRN
Coupon rate: 3m BBSW +48bps
Issue/re-offer price: par
Margin to swap: 48bps/3m BBSW
Maturity date: 26 March 2019

National Bank Australia (NAB)

NAB issued a new, A$80m 10 year domestic bond on 21 March 2018.

Volume: A$80m
Total outstanding in the line: A$80m
Coupon type: fixed
Coupon rate: 3.75%
Issue/re-offer price: 99.546%
Issue yield: 3.805%
Margin to swap: 105bps/s-q
Margin to ACGB: 111.5bps/May 20
Maturity date: 27 March 2028

Northern Territory Treasury Corporation (NTTC)

NTTC priced an increase to its 2033 syndicated line on 22 March 2018.

Volume: A$55m
Total outstanding in the line: A$205m
Coupon type: fixed
Coupon rate: 3.75%
Issue/re-offer price: 101.236% (plus 1.638% accrued)
Issue yield: 3.6425%
Margin to ACGB: 75bps/April 2033
Maturity date: 21 April 2033

NWB Bank (NWB)

NWB priced an increase to its 2028 kangaroo bond on 20 March 2018.

Volume: A$100m
Total outstanding in the line: A$465m
Coupon type: fixed
Coupon rate: 3.45%
Issue/re-offer price: 101.324%
Issue yield: 3.297%
Margin to swap: 54bps/s-q
Margin to ACGB: 61bps/May 2028
Maturity date: 17 July 2028

NWB priced an increase to its 2028 kangaroo bond on 23 March 2018.

Volume: A$100m
Total outstanding in the line: A$565m
Coupon type: fixed
Coupon rate: 3.45%
Issue/re-offer price: 101.639%
Issue yield: 3.261%
Margin to swap: 53bps/s-q
Margin to ACGB: 62bps/May 2028
Maturity date: 17 July 2028

Pepper Group (Pepper)

Pepper issued a new, A$1bn residential mortgage backed transaction, the Pepper Residential Securities Trust No. 20, on 21 March 2018.

Tranche Tranche volume Tranche rating (S&P/Fitch) Weighted average life  Margin to swap Initial credit support
A1-S A$205m AAA/Aaa 0.4 years 65 bps/1m BBSW 30%
A2-u1 US$150m A-1+/P-1 1 years 50 bps/1m US Libor
30%
A1-a A$300m
AAA/Aaa 2.7 years 120 bps/1m BBSW
30%
A2 A$130m
AAA/Aaa 2.7 years
155 bps/1m BBSW
17%
B A$85m
AA/NR 3.8 years 190 bps/1m BBSW
8.5%
C A$30m
A/NR 3.8 years
ND 5.5%
D A$20m
BBB/NR 3.8 years
ND 3.5%
E A$15m
BB/NR 3.6 years ND
2%
F A$10m
B/NR 2.6 years ND
1%
G A$10m
NR/NR 5 years ND
N/A

Source: KangaNews

Rentenbank

Rentenbank priced an increase to its 2028 kangaroo bond on 19 March 2018.

Volume: A$125m
Total outstanding in the line: A$750m
Coupon type: fixed
Coupon rate: 3.25%
Issue/re-offer price: 100.533% (plus 1.473% accrued)
Issue yield: 3.1875%
Margin to swap: 42bps/s-q
Margin to ACGB: 49bps/May 2028
Maturity date: 12 April 2028

Swedish Export Credit Corporation (SEK)

SEK issued a new, A$50m 10.5 year kangaroo bond on 22 March 2018.

Volume: A$50m
Total outstanding in the line: A$50m
Coupon type: fixed
Coupon rate: 3.25%
Issue/re-offer price: 99.603%
Issue yield: 3.295%
Margin to swap: 54bps/s-q
Margin to ACGB: 62.25bps/May 2028
Maturity date: 29 September 2028

Victoria Power Networks (VPN)

VPN issued a new, A$225m 10 year domestic bond on 23 March 2018.

Volume: A$225m
Total outstanding in the line: A$225m
Coupon type: fixed
Coupon rate: 4%
Issue/re-offer price: 99.511%
Issue yield: 4.06%
Margin to swap: 133bps/s-q
Maturity date: 29 March 2028

Volkswagen Financial Services (Volkswagen)

Volkswagen started marketing its new Australian dollar denominated asset backed securities transaction, the Driver Australia Five Trust, on 27 March 2018.

The Driver Australia Five Trust indicative price guidance and structure is as follows:

Tranche Expected rating Weighted average life Indicative price guidance (bps/1m BBSW) 
A AAA/AAA  1.78 years 95 area
B A+/AA- 2.82 years 150 area

Source: KangaNews


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