Tuesday 22 May 2018 by FIIG Research New issues list

New Issues

New issues for the period 16 May – 22 May 2018 including: AOFM, BOQ, DBNGP, EDC, Lloyds, MUFG, NTTC, OKB, Quebec, Resimac, Virgin

Australian Office of Financial Management (AOFM)

AOFM priced a syndicated increase to its 2039 treasury bond on 15 May 2018.

Volume: A$1.7bn
Total outstanding in the line: A$8bn
Coupon type: fixed
Coupon rate: 3.25%
Issue/re-offer price: 100.684% (plus 1.348% accrued)
Issue yield: 3.205%
Margin to EFP: 36bps
Maturity date: 21 June 2039

Bank of Queensland (BOQ)

BOQ launched its Series 2018-1 REDS Trust residential mortgage backed securities transaction on 21 May 2018. The deal has a minimum volume of A$500m and is expected to price on or before 25 May.

The Series 2018-1 REDS Trust indicative price guidance and structure:

Tranche Indicative volume Expected rating (S&P/Fitch) Weighted average life  Indicative price guidance (bps/1m BBSW) 
A1 A$460m AAA/AAA 2.8 years 102-105 area
A2 A$13m AAA/AAA
6.1 years 115-120 area
AB A$4.7m
AAA/NR
6.1 years 145-155 area
B A$8.9m
AA/NR
6.1 years 165-170 area
C A$6.7m
A/NR 6.1 years
240 area
D A$3.1m
BBB/NR 6.1 years
330 area
E A$3.6m
NR/NR 6.1 years 590 area

Source: KangaNews

DBNGP Finance (DBNGP)

DBNGP issued a new, A$350m domestic bond on 22 May 2018.

Volume: A$350m
Total outstanding in the line: A$350m
Coupon type: fixed
Coupon rate: 4.225%
Issue/re-offer price: par 
Issue yield: 4.225%
Margin to swap: 150bps/s-q
Maturity date: 28 May 2025

Export Development Canada (EDC)

EDC issued a new, A$400m five year kangaroo bond on 16 May 2018.

Volume: A$400m
Total outstanding in the line: A$400m
Coupon type: fixed
Coupon rate: 2.8%
Issue/re-offer price: 99.653% 
Issue yield: 2.875%
Margin to swap: 35bps/s-q
Margin to ACGB: 41.5bps/April 2023
Maturity date: 31 May 2023

Lloyds Banking Group (Lloyds)

Lloyds issued a new, A$400m dual tranche domestic bond on 16 May 2018.

5.5-year tranche
Volume: A$250m
Total outstanding in the line: A$250m
Coupon type: fixed
Coupon rate: 3.9%
Issue/re-offer price: 99.584%
Issue yield: 3.985%
Margin to swap: 140bps/s-q

10-year tranche
Volume: A$150m
Total outstanding in the line: A$150m
Coupon type: fixed
Coupon rate: 4.75%
Issue/re-offer price: 99.902%
Issue yield: 4.7625%
Margin to swap: 185bps/s-q

MUFG Bank Sydney Branch (MUFG)

MUFG issued a new, A$300m one year domestic floating rate note on 18 May 2018.

Volume: A$300m
Total outstanding in the line: A$300m
Coupon type: FRN
Coupon rate: 3m BBSW +52bps
Issue/re-offer price: par
Margin to swap: 52bps/3m BBSW
Maturity date: 23 May 2019

Northern Territory Treasury Corporation (NTTC)

NTTC priced a syndicated increase to its 2028 kangaroo bond on 14 May 2018.

Volume: A$250m
Total outstanding in the line: A$750m
Coupon type: fixed
Coupon rate: 3.5%
Issue/re-offer price: 100.834% (plus 0.287% accrued)
Issue yield: 3.4%
Margin to ACGB: 62.5bps/May 2028
Margin to EFP: 61bps
Maturity date: 21 April 2028

Oesterreichische Kontrollbank (OKB)

OKB priced an increase to its 2028 kangaroo bond on 16 May 2018.

Volume: A$30m
Total outstanding in the line: A$130m
Coupon type: fixed
Coupon rate: 3.3%
Issue/re-offer price: 99.037% 
Issue yield: 3.41%
Margin to swap: 53bps/s-q
Margin to ACGB: 58.25bps/November 2028
Maturity date: 15 November 2028

Resimac

Resimac issued a new, A$750m Premier Series 2018-1 residential mortgage backed securities transaction on 18 May 2018.

Note class Tranche volume Tranche rating Weighted average life  Margin to swap  Initial credit support
A1 US$210m AAA/AAA 1.8 years 80bps/1m US Libor 
10%
A2 A$288.75m AAA/AAA 2.7 years 110bps/1m BBSW
10%
A3a A$50m AAA/AAA 5 years 3.8748% semi-annually
10%
A3b A$62.5m AAA/AAA 5 years  140bps/1m BBSW  10%
AB A$47.25m AAA/NR 4.5 years 165bps/1m BBSW 3.7%
B A$11.25m AA/NR 4.5 years 185bps/1m BBSW 2.2%
C A$7.5m A/NR 4.5 years 270bps/1m BBSW 1.2%
D A$6m BB/NR
4.3 years 575bps/1m BBSW 0.4%
E A$3m NR/NR 5 years ND N/A

Source: KangaNews

Virgin Australia (Virgin)

Virgin issued a new, A$150m five year non call three year domestic bond on 18 May 2018.

Volume: A$150m
Total outstanding in the line: A$150m
Coupon type: fixed
Coupon rate: 8.25%
Issue/re-offer price: par
Issue yield: 8.25%
Margin to swap: ND

Maturity date: 30 May 2023


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