New issues for the period 1 February – 7 February 2018 including: AfDB, AOFM, ABD, BNG, CCB, Emirates, EDC, KBN, NPBS, NAB, NTTC, QTC, Rentenbank, Suncorp
African Development Bank (AfDB)
AfDB issued a new, A$360m 10.5 year kangaroo bond on 30 January 2018.
Volume: A$360m
Total outstanding in the line: A$360m
Coupon type: fixed
Coupon rate: 3.35%
Issue/re-offer price: 99.737%
Issue yield: 3.38%
Margin to swap: 45bps/s-q
Margin to ACGB: 51.75bps/May 2028
Maturity date: 8 August 2028
AfDB priced an increase to its 2028 kangaroo bond on 1 February 2018.
Volume: A$20m
Total outstanding in the line: A$380m
Coupon type: fixed
Coupon rate: 3.35%
Issue/re-offer price: 99.93%
Issue yield: 3.358%
Margin to swap: 45bps/s-q
Margin to ACGB: 51.75bps/May 2028
Maturity date: 8 August 2028
Australian Office of Financial Management (AOFM)
AOFM completed its 10th residential mortgage backed securities (RMBS) divestment auction on 30 January 2018, selling 100 per cent of the securities on offer. The total amortised face value sold was A$361.6m across five lines of RMBS originally issued by Bank of Queensland, Bendigo and Adelaide Bank, Macquarie Bank and Suncorp.
AOFM 10th RMBS divestment auction results:
| Line offered | Volume offered | Bids received | Bids accepted | Bid ratio | AOFM WAL | Weighted average margin accepted |
| Apollo 2010-1 A2 | A$126.5m | A$534.3m | A$126.5m | 4.22 | 1.5 | 76 bps/1m BBSW |
| Puma P-16 A3 | A$91.3m | A$408.9m | A$91.3m | 4.48 | 1.3 | 77 bps/1m BBSW |
| Reds 2009-1 A1 | A$81.9m | A$523.8m
| A$81.9m | 6.40 | 1.5 | 80 bps/1m BBSW |
| Torrens 2010-1 A | A$13.5m
| A$107.7m | A$13.5m
| 8.00 | 0.8 | 74 bps/1m BBSW |
| Torrens 2011-2 A2 | A$48.4m
| A$254.0m | A$48.4m | 5.25 | 1.2 | 77 bps/1m BBSW |
Source: KangaNews
BNG Bank (BNG)
BNG priced an increase to its 2028 kangaroo bond on 29 January 2018.
Volume: A$200m
Total outstanding in the line: A$630m
Coupon type: fixed
Coupon rate: 3.3%
Issue/re-offer price: 98.026%
Issue yield: 3.5275%
Margin to swap: 60bps/s-q
Margin to ACGB: 68.25bps/May 2028
Maturity date: 17 July 2028
China Construction Bank Sydney Branch (CCB Sydney)
CCB Sydney priced an increase to its 2020 domestic floating rate note on 2 February 2018.
Volume: A$100m
Total outstanding in the line: A$400m
Coupon type: FRN
Coupon rate: 3m BBSW +91bps
Issue/re-offer price: 100.112% (plus 0.565%)
Margin to swap: 91bps/3m BBSW
Maturity date: 24 November 2020
Emirates NBD (Emirates)
Emirates issued a new, A$450m 10 year kangaroo bond on 1 February 2018.
Volume: A$450m
Total outstanding in this line: A$450m
Coupon type: fixed
Coupon rate: 4.75%
Issue/re-offer price: 99.646%
Issue yield: 4.795%
Margin to swap: 190bps/s-q
Maturity date: 9 February 2028
Export Development Canada (EDC)
EDC priced an increase to its 2022 kangaroo bond on 1 February 2018.
Volume: A$125m
Total outstanding in the line: A$875m
Coupon type: fixed
Coupon rate: 2.7%
Issue/re-offer price: 99.834%
Issue yield: 2.7375%
Margin to swap: 30bps/s-q
Margin to ACGB: 42.25bps/July 2022
Maturity date: 24 October 2022
Kommunalbanken Norway (KBN)
KBN priced an increase to its 2028 kangaroo bond on 2 February 2018.
Volume: A$50m
Total outstanding in the line: A$250m
Coupon type: fixed
Coupon rate: 3.4%
Issue/re-offer price: 99.433% (plus 0.15%)
Issue yield: 3.465%
Margin to swap: 57bps/s-q
Margin to ACGB: 64.875bps/May 2028
Maturity date: 24 July 2028
National Bank Australia (NAB)
NAB launched its residential mortgage backed securities transaction, NRMBS 2018-1, on 5 February 2018. The deal has an indicative volume of A$750m with the potential to upsize to A$2bn. An indicative A$112.5m green tranche, class A1-G, is included in the structure.
NRMBS 2018-1 indicative price guidance and structure:
| Tranche | Indicative volume | Expected ratings (Moody's/Fitch) | Weighted average life (years) | Indicative price guidance |
| A1-A | A$577.5m | Aaa/AAA | 3 | 85-88 area |
| A1-G | A$112.5m
| Aaa/AAA | 3 | 85-88 area |
| A2 | A$26.25m
| Aaa/AAA | 5.7 | 120-125 area |
| B | A$17.25m | Aa2/NR | 5.7
| 170-185 area |
| C | A$6m
| A2/NR | 5.7
| 220-235 area |
| D | A$5.25m
| Baa2/NR | 5.7
| 320-335 area |
| E | A$3m
| Ba2/NR | 5.7
| 445-455 area |
| F | A$2.25m
| NR/NR | 5.7 | 575 area |
Source: KangaNews
Newcastle Permanent Building Society (NPBS)
NPBS issued a new, A$225m five year domestic floating rate note on 30 January 2018.
Volume: A$225m
Total outstanding in the line: A$225m
Coupon type: FRN
Coupon rate: 3m BBSW +140bps
Issue/re-offer price: par
Margin to swap: 140bps/3m BBSW
Maturity date: 6 February 2023
Northern Territory Treasury Corporation (NTTC)
NTTC priced an increase to its 2042 domestic bond on 30 January 2018.
Volume: A$70m
Total outstanding in the line: A$225m
Coupon type: fixed
Coupon rate: 4.1%
Issue/re-offer price: 98.124% (plus 0.872% accrued)
Issue yield: 4.2225%
Margin to ACGB: 90bps/June 2039
Maturity date: 21 November 2042
Queensland Treasury Corporation (QTC)
QTC issued a new, A$2.5bn dual tranche syndicated transaction on 30 January 2018.
FRN tranche
Volume: A$2bn
Total outstanding in the line: A$2bn
Coupon rate: 3m BBSW +14.5bps
Issue/re-offer price: par
Margin to swap: 14.5bps/3m BBSW
Maturity date: 7 February 2022
Fixed-rate tranche
Volume: A$500m
Total outstanding in the line: A$2.8bn
Coupon rate: 3.25%
Issue/re-offer price: 99.297% (plus 0.153% accrued)
Issue yield: 3.33%
Margin to EFP: +46bps
Margin to ACGB: 46.5bps/May 2028
Maturity date: 21 July 2028
Rentenbank
Rentenbank priced an increase to its 2028 kangaroo bond on 2 February 2018.
Volume: A$50m
Total outstanding in the line: A$575m
Coupon type: fixed
Coupon rate: 3.25%
Issue/re-offer price: 99.269%
Issue yield: 3.335%
Margin to swap: 44bps/s-q
Margin to ACGB: 50bps/May 2028
Maturity date: 12 April 2028
Suncorp-Metway (Suncorp)
Suncorp issued a new, A$200m one year domestic floating rate note on 30 January 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: 5 February 2019
Source: KangaNews