New issues for the period 20 September 2017 – 26 September 2017 including: BNG, Deutsche Bahn, EIB, Firstmac, NWB, OCBC, Ontario, Rentenbank, SGSP, WATC
BNG Bank (BNG)
BNG priced an increase to its 2027 kangaroo bond on 20 September 2017.
Volume: A$15m
Total outstanding in this line: A$690m
Coupon type: fixed
Coupon rate: 3.5%
Issue/re-offer price: 99.996% (plus 0.666% accrued)
Issue yield: 3.5%
Margin to swap: 63bps/s-q
Margin to ACGB: 71bps/April 2027
Maturity date: 19 July 2027
Deutsche Bahn
Deutsche Bahn issued a new, A$600m inaugural dual tranche kangaroo bond on 21 September 2017.
Seven year tranche
Volume: A$425m
Total outstanding in this line: A$425m
Maturity date: 27 September 2024
Coupon type: fixed
Coupon rate: 3.5%
Issue/re-offer price: 99.748%
Issue yield: 3.541%
Margin to swap: 85bps/s-q
Margin to ACGB: 93.85bps/April 2024
Maturity date: 27 September 2024
10 year tranche
Volume: A$175m
Total outstanding in this line: A$175m
Maturity date: 27 September 2027
Coupon type: fixed
Coupon rate: 3.8%
Issue/re-offer price: 99.621%
Issue yield: 3.846%
Margin to swap: 95bps/s-q
Margin to ACGB: 99.85bps/November 2027
Maturity date: 27 September 2027
European Investment Bank (EIB)
EIB priced an increase to its 2028 kangaroo climate awareness bond on 20 September 2017.
Volume: A$125m
Total outstanding in this line: A$325m
Coupon type: fixed
Coupon rate: 3.3%
Issue/re-offer price: 98.83%
Issue yield: 3.435%
Margin to swap: 54bps/s-q
Margin to ACGB: 57bps/May 2028
Maturity date: 3 February 2028
Firstmac
Firstmac issued a new, A$1bn in its second RMBS of 2017 on 22 September 2017.
| Note class | Tranche volume | Tranche rating (S&P/Fitch) | WAL | Margin to swap | Initial credit support |
| A1 | A$850m | AAA/AAA | 3.0 years | 114bps/1m BBSW
| 15%
|
| A2 | A$70m
| AAA/AAA | 4.0 years | 140bps/1m BBSW
| 8%
|
| AB | A$56m
| AAA/NR | 5.0 years | 175bps/1m BBSW
| 2.4%
|
| B | A$18m | AA-/NR | 5.0 years | 225bps/1m BBSW
| 0.6%
|
| C | A$5m
| A/NR | 5.0 years | 310bps/1m BBSW
| 0.1%
|
| D | A$1m
| NR/NR | 7.0 years | ND | N/A
|
NWB Bank (NWB)
NWB priced an increase to its 2027 kangaroo bond on 19 September 2017.
Volume: A$175m
Total outstanding in this line: A$425m
Coupon type: fixed
Coupon rate: 3.5%
Issue/re-offer price: 100.162%
Issue yield: 3.48%
Margin to swap: 64bps/s-q
Margin to ACGB: 72.75bps/April 2027
Maturity date: 20 July 2027
Oversea-Chinese Banking Corporation Sydney Branch (OCBC Sydney)
OCBC Sydney issued a new, A$300m three year floating rate note on 25 September 2017.
Volume: A$300m
Total outstanding in this line: A$300m
Coupon type: FRN
Coupon rate: 3m BBSW +60bps
Issue/re-offer price: par
Margin to swap: 60bps/3m BBSW
Maturity date: 6 October 2020
Province of Ontario (Ontario)
Ontario priced an increase to its 2027 kangaroo bond on 20 September 2017.
Volume: A$25m
Total outstanding in this line: A$315m
Coupon type: fixed
Coupon rate: 3.5%
Issue/re-offer price: 99.661% (plus 0.59% accrued)
Issue yield: 3.5425%
Margin to swap: 70bps/s-q
Margin to ACGB: 75.75bps/April 2027
Maturity date: 27 January 2027
Rentenbank
Rentenbank priced an increase to its 2022 kangaroo bond on 18 September 2017.
Volume: A$50m
Total outstanding in this line: A$1.05bn
Coupon type: fixed
Coupon rate: 5.5%
Issue/re-offer price: 111.941%
Issue yield: 2.6725%
Margin to swap: 30bps/s-q
Margin to ACGB: 31.85bps/July 2022
Maturity date: 29 March 2022
SGSP Australia Assets (SGSP)
SGSP issued a new, A$250m seven year domestic bond on 21 September 2017.
Volume: A$250m
Total outstanding in this line: A$250m
Coupon type: fixed
Coupon rate: 3.75%
Issue/re-offer price: 99.074%
Issue yield: 3.9025%
Margin to swap: 120bps/s-q
Maturity date: 27 September 2024
Suncorp-Metway (Suncorp)
Suncorp priced and doubled the volume of its Apollo Series Trust 2017-2 on 21 September 2017.
The Apollo Series 2017-2 indicative and final deal structure is as follows:
| Tranche | Final volume (A$m) | Indicative volume (A$m) | Weighted average life (years) | Final pricing (bp/1m BBSW) | Official price guidance (bps/1m BBSW) | Initial price guidance (bps/1m BBSW) | Expected rating (S&P/Fitch) | Credit enhancement (%) |
| A1 | 1380 | 690 | 3.0 | 101 | 103 area
| low 100s | AAA/AAA | 8 |
| A2 | 30 | 15 | 3.0 | 125 | 135 area
| 135-140 area
| AAA/AAA | 6 |
| AB | 32.25 | 16.125 | 5.7 | 155 | 155 area
| 155 area
| AAA/AAA | 3.85 |
| B | 22.5 | 11.25 | 5.7 | 205 | 215 area
| 215 area
| AA/NR | 2.35 |
| C | 17.25 | 8.625 | 5.7 | 280 | 290 area
| 290 area
| A/NR | 1.2 |
| D | 8.25 | 4.125 | 5.7 | 370 | 380 area | 380 area | BBB/NR | 0.65 |
| E | 9.75 | 4.875 | 5.7 | 590 | 590 area | 590 area | NR | N/A |
Source: National Australia Bank
Western Australian Treasury Corporation (WATC)
WATC priced an increase to its 2026 benchmark bond on 20 September 2017.
Volume: A$1.4bn
Total outstanding in this line: A$2.925bn
Coupon type: fixed
Coupon rate: 3%
Issue/re-offer price: 96.977% (plus 1.303% accrued)
Issue yield: 3.39%
Margin to ACGB: 63bps/April 2026
Margin to EFP: 51bps
Maturity date: 21 October 2026
Source: KangaNews