Tuesday 11 July 2017 by FIIG Research Company updates

Company updates – Barminco, CBA, NCIG and RedZed

This week, Barminco received extensions to two of its major contracts, CBA issued its longest ever 30 year benchmark bond, NCIG completed refinancing of its March 2018 bank debt and we DirectBonded RedZed’s residential mortgage backed securities class B to F notes

Barminco

Barminco Limited has been awarded a three year extension to two existing contracts at Western Areas’ Forrestania Nickel Operations (FNO) in Western Australia.

More information is available here.*

Commonwealth Bank of Australia

The Commonwealth Bank of Australia (CBA) issued its longest ever benchmark bond on 6 July. Taking advantage of tight credit spreads and long dated demand, the bank printed USD1.5bn of 30 year bonds – pricing at 103 basis points over US treasuries.

Further, the new issue triples the duration of CBA’s previous longest dated senior unsecured bond, adding more than four months to its weighted average portfolio duration at the same time. This is the first benchmark sized 30 year bond issue by an Australian major bank, and also marks the first time CBA itself has issued senior unsecured bonds with a duration longer than 10 years.

On demand for the new issue, CBA stated,

“Demand for this tenor very much rewards issuers at present. US high grade investors are offering spreads almost at their post crisis low point and very low new issue concessions, which allows us to take advantage of long end appetite […] The transaction attracted a book of around US3.5bn.”

Newcastle Coal Infrastructure Group

Newcastle Coal Infrastructure Group Pty Limited (NCIG) has successfully completed the refinancing of its bank debt maturing in March 2018.

More information is available here.*

New RMBS DirectBond – RedZed

We have added the RedZed Trust Series 2017-1 RMBS floating rate class B, C, D, E and F notes to the DirectBond list. The notes have a final legal maturity in September 2049 and are available to wholesale clients only at the following rates:

Note class ISIN Rate
B AU3FN0035184
1M BBSW +2.95%
C AU3FN0035200
 1M BBSW +3.95%
D AU3FN0035218
1M BBSW +4.75%
E AU3FN0035226
1M BBSW +6.50%
F AU3FN0035234
 1M BBSW +7.50%


Background

RedZed Lending Solutions is an Australian owned and operated lender, specialising in solutions for the self employed.

RedZed was founded in 2006 and operates exclusively in Australia, offering a broad range of specialist lending products.

 


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