Tuesday 17 April 2018 by FIIG Research New issues list

New Issues

New issues for the period 11 April – 17 April 2018 including: ACT, BOC, Caltex, EFIC, Quebec, Suncorp, Volkswagen, WATC, Westpac

Australian Capital Territory (ACT)

ACT issued a new, A$550m 10 year syndicated transaction on 10 April 2018.

Volume: A$550m
Total outstanding in the line: A$550m
Coupon type: fixed
Coupon rate: 3%
Issue/re-offer price: 98.006%
Issue yield: 3.235%
Margin to ACGB: 54.25bps/May 2028
Margin to EFP: 53bps
Maturity date: 18 April 2028

Bank of China Sydney Branch (BOC)

BOC issued a new, A$800m three year domestic floating rate note on 10 April 2018.

Volume: A$800m
Total outstanding in this line: A$800m
Coupon type: FRN
Coupon rate: 3m BBSW +103bps
Issue/re-offer price: par
Margin to swap: 103bps/3m BBSW
Maturity date: 17 April 2021

Caltex Australia (Caltex)

Caltex issued a new, A$300m seven year domestic bond on 11 April 2018.

Volume: A$300m
Total outstanding in this line: A$300m
Coupon type: fixed
Coupon rate: 4%
Issue/re-offer price: 99.924% 
Issue yield: 4.0125%
Margin to swap: 142bps/s-q
Maturity date: 17 April 2025

Export Finance and Insurance Corporation (EFIC)

EFIC issued a new, A$130m 10.5 year syndicated transaction on 12 April 2018.

Volume: A$130m
Total outstanding in the line: A$130m
Coupon type: fixed
Coupon rate: 3%
Issue/re-offer price: 98.783% (plus 1.03% accrued)
Issue yield: 3.135%
Margin to EFP: 45bps
Margin to ACGB: 44.75bps/November 2028
Maturity date: 15 December 2028

People’s Choice Credit Union (People’s Choice)

People’s Choice launched a new, A$500m residential mortgage backed securities transaction, Light Trust 2018-1, on 10 April 2018.

Tranche Tranche volume Tranche rating (S&P/Fitch) Weighted average life  Margin to swap Initial credit support
A1 A$460m AAA/AAA 3 years 115bps/1m BBSW 8%
A2 A$10.5m AAA/AAA 5.4 years 135bps/1m BBSW 5.9%
AB A$16m
AAA/NR 5.4 years 165bps/1m BBSW
2.7%
B A$8m
AA/NR 5.4 years 200bps/1m BBSW
1.1%
C A$4.5m
A+/NR 5.4 years
290bps/1m BBSW
0.2%
D A$1m
NR/NR 5.4 years
590bps/1m BBSW
n/a

Source: KangaNews

Province of Quebec (Quebec)

Quebec issued a new, A$65m 10.5 year kangaroo bond on 11 April 2018.

Volume: A$65m
Total outstanding in the line: A$65m
Coupon type: fixed
Coupon rate: 3.25%
Issue/re-offer price: 99.779%
Issue yield: 3.275%
Margin to swap: 50bps/s-q
Margin to ACGB: 58.25bps/November 2028
Maturity date: 18 October 2028

Suncorp-Metway (Suncorp)

Suncorp launched its residential mortgage backed securities transaction, Apollo Series 2018-1, on 16 April 2018. The deal has an indicative total volume of A$750m and is expected to price on or around 19 April 2018.

Apollo 2018-1 indicative price guidance and structure:

Tranche Indicative volume Tranche rating Weighted average life Indicative price guidance (bps/1m BBSW)
A1 A$690m AAA/AAA  2.9 years 105 area
A2 A$27.75m
AAA/AAA 5.3 years 115-120 area
AB  A$5.25m  AAA/AAA  5.3 years 150-155 area 
B  A$11.25m  AA/NR  5.3 years  170-180 area
C A$7.5m   A/NR  5.3 years  250-270 area
D  A$3.375m  BBB/NR  5.3 years  340-360 area
E  A$4.875m  NR/NR 5.3 years   570-595 area

Source: KangaNews

Volkswagen Financial Services Australia (Volkswagen)

Volkswagen issued a new, A$400m three year domestic bond on 10 April 2018.

Volume: A$400m
Total outstanding in the line: A$400m
Coupon type: fixed
Coupon rate: 3.25%
Issue/re-offer price: 99.851%
Issue yield: 3.3025%
Margin to swap: 107bps/s-q
Maturity date: 13 April 2021

Western Australian Treasury Corporation (WATC)

WATC issued a new, A$1.3bn 10 year syndicated transaction on 13 April 2018.

Volume: A$1.3bn
Total outstanding in the line: A$1.3bn
Coupon type: fixed
Coupon rate: 3.25%
Issue/re-offer price: 98.878% (plus 0.808%) 
Issue yield: 3.38%
Margin to EFP: 64.5bps
Margin to ACGB: 65.5bps/May 28
Maturity date: 20 July 2028

Westpac Banking Corporation (WBC)

WBC priced an increase to its 2022 domestic floating rate note on 11 April 2018.

Volume: A$200m
Total outstanding in the line: A$2.15bn
Coupon type: FRN
Coupon rate: 3m BBSW +81bps
Issue/re-offer price: 99.795% (plus 0.553% accrued)
Margin to swap: 86bps/3m BBSW
Maturity date: 27 October 2022

WBC priced an increase to its 2022 domestic floating rate note on 12 April 2018.

Volume: A$225m
Total outstanding in the line: A$2.375bn
Coupon type: FRN
Coupon rate: 3m BBSW +81bps
Issue/re-offer price: 99.795% (plus 0.553% accrued)
Margin to swap: 86bps/3m BBSW
Maturity date: 27 October 2022

Source: KangaNews


Superannuation in 2019  – what you need to know webinar - Tony Negline

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.