New issues for the period 7 February – 13 February 2018 including: AfDB, AOFM, AusNet, Bluestone, BNG, CCB, CBA, NWB, Manitoba, NAB, Westpac, World Bank
African Development Bank (ADB)
ADB priced an increase to its 2028 kangaroo bond on 8 February 2018.
Volume: A$30m
Total outstanding in the line: A$410m
Coupon type: fixed
Coupon rate: 3.35%
Issue/re-offer price: 99.758%
Issue yield: 3.3775%
Margin to swap: 44bps/s-q
Margin to ACGB: 51bps/May 2028
Maturity date: 8 August 2028
Australian Office of Financial Management (AOFM)
On 7 February 2018, AOFM revealed its 11th residential mortgage backed securities (RMBS) auction, to be held on 22 February 2018. The auction includes five tranches of RMBS with original face value of A$1.2bn, representing the entirety of the AOFM’s remaining RMBS portfolio.
AOFM RMBS auction 11 securities:
| Security | Sponser | AOFM holding original face value | AOFM reserve price |
| Idol 2010-1 A2 | ING Bank | A$62m | 100.18 |
| SMHL 2011-2 A | ME Bank | A$175.2m
| 100.14 |
| SMHL 2012-1 A3 | ME Bank | A$123.5m
| 100.52 |
| Torrens 2010-2 A4 | Bendigo and Adelaide Bank | A$476.5m
| 100.12 |
| Torrens 2010-3 A5 | Bendigo and Adelaide Bank
| A$395m
| 100.14 |
Source: KangaNews
AusNet Services (AusNet)
AusNet issued a new, A$500m 10.5 year domestic bond on 9 February 2018.
Volume: A$500m
Total outstanding in the line: A$500m
Coupon type: fixed
Coupon rate: 4.2%
Issue/re-offer price: 99.811%
Issue yield: 4.2225%
Margin to swap: 130bps/s-q
Maturity date: 21 August 2028
Bluestone Group (Bluestone)
Bluestone began taking indications of interest on a potential residential mortgage backed securities transaction, Sapphire XVIII 2018-1. The publicly offered tranches have indicative total volume of A$214m. The Class B, Class C, Class D and Class E notes have been preplaced.
Sapphire XVII 2018-1 indicative structure and price guidance is as follows:
| Tranche | Indicative volume | Expected rating | Weighted average life | Indicative price guidance (bps/1m BBSW) |
| A1 | A$125m | Aaa | 2.1 years | 120 area |
| A2 | A$50m
| Aaa | 2.1 years | 160-165 area |
| A3 | A$29m
| Aaa | 2.1 years | 180-185 area |
| F | A$2.5m
| B2 | 3.6 years | 710-715 area |
| G | A$1.5m
| NR | 2.3 years | 1,050-1,100 area |
| X1 | A$6m
| NR | 1 year | 9% area |
Source: KangaNews
BNG Bank (BNG)
BNG priced an increase to its 2028 kangaroo bond on 7 February 2018.
Volume: A$35m
Total outstanding in the line: A$665m
Coupon type: fixed
Coupon rate: 3.3%
Issue/re-offer price: 98.501%
Issue yield: 3.4725%
Margin to swap: 54bps/s-q
Margin to ACGB: 61bps/May 2028
Maturity date: 17 July 2028
BNG priced an increase to its 2028 kangaroo bond on 9 February 2018.
Volume: A$50m
Total outstanding in this line: A$715m
Coupon type: fixed
Coupon rate: 3.3%
Issue/re-offer price: 98.76%
Issue yield: 3.4425%
Margin to swap: 53bps/s-q
Margin to ACGB: 59bps/May 2028
Maturity date: 17 July 2028
China Construction Bank Sydney Branch (CCB)
CCB issued a new, A$150m domestic floating rate note on 8 February 2018.
Volume: A$150m
Total outstanding in the line: A$150m
Coupon type: FRN
Coupon rate: 3m BBSW +55bps
Issue/re-offer price: par
Margin to swap: 55bps/3m BBSW
Maturity date: 14 February 2019
Commonwealth Bank of Australia (CBA)
CBA launched the refinancing of the Class A3-R notes of its prime residential mortgage backed securities transaction, Medallion 2013-1. The notes have indicative volume of A$250m. The self led deal is expected to price on or before 16 February.
The Medallion 2013-1 A3-R indicative price guidance is as follows:
| Class | Volume | Expected ratings | Weighted average life | Credit enhancement | Indicative price (bps/1m BBSW) |
| A3-R | A$250m | AAA/AAA | 3.2 years | 16.3% | 80-85 area |
Source: KangaNews
National Australia Bank (NAB)
NAB priced an increase to its residential mortgage backed securities transaction, NRMBS 2018-1, on 8 February 2018.
| Note class | Tranche volume | Tranche rating | Weighted average life | Margin to swap | Initial credit support |
| A1-A | A$1.54bn | Aaa/AAA | 3 years | 85bps/1m BBSW | 8% |
| A2-G | A$300m
| Aaa/AAA
| 3 years | 85bps/1m BBSW | 8% |
| A2 | A$70m
| Aaa/AAA
| 5.7 years | 120bps/1m BBSW
| 4.5% |
| B | A$46m
| Aa2/NR | 5.7 years
| 170bps/1m BBSW
| 2.2% |
| C | A$16m
| A2/NR | 5.7 years
| 220bps/1m BBSW
| 1.4% |
| D | A$14m
| Baa2/NR | 5.7 years
| 320bps/1m BBSW
| 0.7% |
| E | A$8m
| Ba2/NR | 5.7 years
| 445bps/1m BBSW
| 0.3% |
| F | A$6m
| NR/NR | 5.7 years
| 575bps/1m BBSW
| n/a |
Source: KangaNews NWB Bank (NWB)
NWB priced an increase to its 2028 kangaroo bond on 8 February 2018.
Volume: A$45m
Total outstanding in the line: A$215m
Coupon type: fixed
Coupon rate: 3.45%
Issue/re-offer price: 99.825%
Issue yield: 3.47%
Margin to swap: 54bps/s-q
Margin to ACGB: 60.75bps/May 2028
Maturity date: 17 July 2028
Province of Manitoba (Manitoba)
Manitoba priced an increase to its 2027 kangaroo bond on 9 February 2018.
Volume: A$35m
Total outstanding in the line: A$260m
Coupon type: fixed
Coupon rate: 3.6%
Issue/re-offer price: 101.671%
Issue yield: 3.3925%
Margin to swap: 55bps/s-q
Margin to ACGB: 58.75bps/April 2027
Maturity date: 17 August 2027
Manitoba priced an increase to its 2027 kangaroo bond on 12 February 2018.
Volume: A$15m
Total outstanding in the line: A$275m
Coupon type: fixed
Coupon rate: 3.6%
Issue/re-offer price: 101.326%
Issue yield: 3.435%
Margin to swap: 55bps/s-q
Margin to ACGB: 59bps/April 2027
Maturity date: 17 August 2027
Westpac Banking Corporation (WBC)
WBC issued a new, A$150m domestic Tier 2 bond on 7 February 2018.
Volume: A$150m
Total outstanding in the line: A$150m
Coupon type: FRN
Coupon rate: 3m BBSW +140bps
Issue/re-offer price: par
Margin to swap: 140bps/3m BBSW
Maturity date: 16 February 2028
WBC priced an increase to its domestic Tier 2 bond on 8 February 2018.
Volume: A$75m
Total outstanding in this line: A$225m
Coupon type: FRN
Coupon rate: 3m BBSW +140bps
Issue/re-offer price: par
Margin to swap: 140bps/3m BBSW
Maturity date: 16 February 2028
WBC priced an increase to its domestic tier two bond on 9 February 2018.
Volume: A$25m
Total outstanding in the line: A$250m
Coupon type: FRN
Coupon rate: 3m BBSW +140bps
Issue/re-offer price: par
Margin to swap: 140bps/3m BBSW
Maturity date: 16 February 2023
World Bank
World Bank issued a new, A$500m 10.5 year kangaroo bond on 6 February 2018.
Volume: A$500m
Total outstanding in the line: A$500m
Coupon type: fixed
Coupon rate: 3.3%
Issue/re-offer price: 99.846%
Issue yield: 3.3175%
Margin to swap: 42bps/s-q
Margin to ACGB: 48.75bps/May 2028
Maturity date: 14 August 2028
Source: KangaNews