New issues for the period 17 May – 23 May 2016 including: AMP Bank, Australian Capital Territory, Auckland Council, Firstmac, KommuneKredit, Nederlandse Waterschapsbank and Westpac Banking Corporation
AMP Bank (AMP)
AMP launched a five year senior unsecured bond on 17 May 2016.
Volume: A$500m
Coupon type: floating rate note
Coupon rate: 3m BBSW +135bps
Issue/re offer price: par
Margin to swap: 135bps/3m BBSW
Maturity date: 24 May 2021
Australian Capital Territory (ACT)
ACT priced a new 10 year domestic benchmark on 17 May 2016. The transaction was the first syndicated issue by the territory in two years.
Volume: A$525m
Coupon type: fixed
Coupon rate: 2.5%
Issue/re offer price: 98.733%
Issue yield: 2.645%
Margin to ACGB: 35.5bps/April 2026
Maturity date: 21 May 2026
Auckland Council
Auckland Council priced a tap to its March 2026 bond on 19 May 2016.
Volume: A$60m
Coupon type: fixed
Coupon rate: 3.5%
Issue/re offer price: 103.010% (plus 0.742% accrued)
Issue yield: 3.14%
Margin to swap: 80bps
Margin to ACGB: 78.25bps/April 2026
Maturity date: 9 March 2026
Firstmac
Firstmac priced its first residential mortgage backed securities transaction on 20 May 2016.
Total deal volume: A$500m
Deal type: residential mortgage backed securities
| Note class | Tranche volume (A$m) | WAL (years) | Margin to swap | Initial credit support |
| A 1a | 405.0 | 3.0 | 1m BBSW +150bps
| 15.00% |
| A 1b | 20.0 | 3.7 | 1m BBSW +150bps
| 15.00% |
| A 2 | 35.0 | 3.8 | 1m BBSW +210bps
| 8.00% |
| B | 26.0 | 5.1 | 1m BBSW +250bps
| 2.80% |
| C | 6.5 | 5.1 | 1m BBSW +325bps
| 1.50% |
| D | 5.5 | 5.1 | 1m BBSW +600bps
| 0.40% |
| E | 2.0 | 8.6 | ND | N/A |
KommuneKredit
KommuneKredit priced a new ten year fixed rate bond on 18 May 2016.
Volume: A$50m
Coupon type: fixed
Coupon rate: 2.9%
Issue/re offer price: 99.306%
Issue yield: 2.9975%
Margin to ACGB: 75.5bps/April 2026
Maturity date: 27 November 2026
Industrial and Commercial Bank of China Sydney Branch (ICBC Sydney)
ICBC Sydney priced a new 3 year floating rate bond on 20 May 2016.
Volume: A$400m
Coupon type: floating rate note
Coupon rate: 3m BBSW +122bps
Issue/re offer price: par
Margin to swap: 122bps/3m BBSW
Maturity date: 27 May 2019
Nederlandse Waterschapsbank (NWB)
NWB priced three taps to its September 2026 bond.
Volume: A$15m
Coupon type: fixed
Coupon rate: 3.15%
Issue/re offer price: 101.404% (plus 0.702% accrued)
Issue yield: 2.99%
Margin to swap: 72bps
Margin to ACGB: 75.75bps/April 2026
Maturity date: 2 September 2026
Volume: A$30m
Coupon type: fixed
Coupon rate: 3.15%
Issue/re offer price: 101.006% (plus 0.702% accrued)
Issue yield: 3.035%
Margin to swap: 72bps
Margin to ACGB: 74.75bps/April 2026
Maturity date: 2 September 2026
Volume: A$15m
Coupon type: fixed
Coupon rate: 3.15%
Issue/re offer price: 100.478% (plus 0.702% accrued)
Issue yield: 3.095%
Margin to ACGB: 75bps/April 2026
Maturity date: 2 September 2026
Westpac Banking Corporation (Westpac)
Westpac issued a new five year domestic benchmark bond, mandated on 23 May 2016. The self led transaction will be the first in Australia to include a green bond tranche alongside non green notes.
The proceeds of the green tranche – which will form the fixed rate component of a combined fixed and floating rate offer – will be used to fund renewable energy and green building projects in Australia.
Source: KangaNews, FIIG Securities