New issues for the period 16 May – 22 May 2018 including: AOFM, BOQ, DBNGP, EDC, Lloyds, MUFG, NTTC, OKB, Quebec, Resimac, Virgin
Australian Office of Financial Management (AOFM)
AOFM priced a syndicated increase to its 2039 treasury bond on 15 May 2018.
Volume: A$1.7bn
Total outstanding in the line: A$8bn
Coupon type: fixed
Coupon rate: 3.25%
Issue/re-offer price: 100.684% (plus 1.348% accrued)
Issue yield: 3.205%
Margin to EFP: 36bps
Maturity date: 21 June 2039
Bank of Queensland (BOQ)
BOQ launched its Series 2018-1 REDS Trust residential mortgage backed securities transaction on 21 May 2018. The deal has a minimum volume of A$500m and is expected to price on or before 25 May.
The Series 2018-1 REDS Trust indicative price guidance and structure:
| Tranche | Indicative volume | Expected rating (S&P/Fitch) | Weighted average life | Indicative price guidance (bps/1m BBSW) |
| A1 | A$460m | AAA/AAA | 2.8 years | 102-105 area |
| A2 | A$13m | AAA/AAA
| 6.1 years | 115-120 area |
| AB | A$4.7m
| AAA/NR
| 6.1 years | 145-155 area |
| B | A$8.9m
| AA/NR
| 6.1 years | 165-170 area |
| C | A$6.7m
| A/NR | 6.1 years
| 240 area |
| D | A$3.1m
| BBB/NR | 6.1 years
| 330 area |
| E | A$3.6m
| NR/NR | 6.1 years | 590 area |
Source: KangaNews
DBNGP Finance (DBNGP)
DBNGP issued a new, A$350m domestic bond on 22 May 2018.
Volume: A$350m
Total outstanding in the line: A$350m
Coupon type: fixed
Coupon rate: 4.225%
Issue/re-offer price: par
Issue yield: 4.225%
Margin to swap: 150bps/s-q
Maturity date: 28 May 2025
Export Development Canada (EDC)
EDC issued a new, A$400m five year kangaroo bond on 16 May 2018.
Volume: A$400m
Total outstanding in the line: A$400m
Coupon type: fixed
Coupon rate: 2.8%
Issue/re-offer price: 99.653%
Issue yield: 2.875%
Margin to swap: 35bps/s-q
Margin to ACGB: 41.5bps/April 2023
Maturity date: 31 May 2023
Lloyds Banking Group (Lloyds)
Lloyds issued a new, A$400m dual tranche domestic bond on 16 May 2018.
5.5-year tranche
Volume: A$250m
Total outstanding in the line: A$250m
Coupon type: fixed
Coupon rate: 3.9%
Issue/re-offer price: 99.584%
Issue yield: 3.985%
Margin to swap: 140bps/s-q
10-year tranche
Volume: A$150m
Total outstanding in the line: A$150m
Coupon type: fixed
Coupon rate: 4.75%
Issue/re-offer price: 99.902%
Issue yield: 4.7625%
Margin to swap: 185bps/s-q
MUFG Bank Sydney Branch (MUFG)
MUFG issued a new, A$300m one year domestic floating rate note on 18 May 2018.
Volume: A$300m
Total outstanding in the line: A$300m
Coupon type: FRN
Coupon rate: 3m BBSW +52bps
Issue/re-offer price: par
Margin to swap: 52bps/3m BBSW
Maturity date: 23 May 2019
Northern Territory Treasury Corporation (NTTC)
NTTC priced a syndicated increase to its 2028 kangaroo bond on 14 May 2018.
Volume: A$250m
Total outstanding in the line: A$750m
Coupon type: fixed
Coupon rate: 3.5%
Issue/re-offer price: 100.834% (plus 0.287% accrued)
Issue yield: 3.4%
Margin to ACGB: 62.5bps/May 2028
Margin to EFP: 61bps
Maturity date: 21 April 2028
Oesterreichische Kontrollbank (OKB)
OKB priced an increase to its 2028 kangaroo bond on 16 May 2018.
Volume: A$30m
Total outstanding in the line: A$130m
Coupon type: fixed
Coupon rate: 3.3%
Issue/re-offer price: 99.037%
Issue yield: 3.41%
Margin to swap: 53bps/s-q
Margin to ACGB: 58.25bps/November 2028
Maturity date: 15 November 2028
Resimac
Resimac issued a new, A$750m Premier Series 2018-1 residential mortgage backed securities transaction on 18 May 2018.
| Note class | Tranche volume | Tranche rating | Weighted average life | Margin to swap | Initial credit support |
| A1 | US$210m | AAA/AAA | 1.8 years | 80bps/1m US Libor
| 10%
|
| A2 | A$288.75m | AAA/AAA | 2.7 years | 110bps/1m BBSW
| 10% |
| A3a | A$50m | AAA/AAA | 5 years | 3.8748% semi-annually
| 10%
|
| A3b | A$62.5m | AAA/AAA | 5 years | 140bps/1m BBSW | 10% |
| AB | A$47.25m | AAA/NR | 4.5 years | 165bps/1m BBSW | 3.7% |
| B | A$11.25m | AA/NR | 4.5 years | 185bps/1m BBSW | 2.2% |
| C | A$7.5m | A/NR | 4.5 years | 270bps/1m BBSW | 1.2% |
| D | A$6m | BB/NR
| 4.3 years | 575bps/1m BBSW | 0.4% |
| E | A$3m | NR/NR | 5 years | ND | N/A |
Source: KangaNews
Virgin Australia (Virgin)
Virgin issued a new, A$150m five year non call three year domestic bond on 18 May 2018.
Volume: A$150m
Total outstanding in the line: A$150m
Coupon type: fixed
Coupon rate: 8.25%
Issue/re-offer price: par
Issue yield: 8.25%
Margin to swap: ND
Maturity date: 30 May 2023