New issues for the period 23 May – 31 May 2016 including: BNP Paribas, Commonwealth Bank of Australia, Export Development Canada, International Finance Corporation, QPH Finance Company and Westpac Banking Corporation
BNP Paribas
BNP Paribas priced a new tier two bond on 25 May 2016.
Volume: A$425m
Coupon type: fixed
Coupon rate: 5%
Issue/re offer price: 99.844%
Issue yield: 5.027%
Margin to swap: 288bps/April 2026
Maturity date: 31 May 2028
Bank of China Sydney Branch (BoC Sydney)
BoC Sydney priced a new three year senior unsecured bond on 27 May 2016.
Volume: A$500m
Coupon type: floating rate note
Coupon rate: 3m BBSW +135bps
Issue/re offer price: par
Margin to swap: 120bps/3m BBSW
Maturity date: 6 June 2019
Coca Cola Company (Coca Cola)
On May 31, Coca Cola launched a new four year and eight year senior unsecured bond transaction. The forthcoming transaction will be Coca Cola's debut deal in the Australian market. Coca Cola Amatil has a single 2019 maturity line outstanding for A$150m.
Commonwealth Bank of Australia (CommBank)
On May 30, CommBank mandated a new, self led subordinated notes offer in the Australian market. The A$1 billion Tier 2 notes were issued at 195 basis points over bank bills and, according to Yieldbroker ratesheets, were indicated at 188 basis points over bank bills at the close on May 27.
DBS Bank (DBS)
DBS priced a new, three year floating rate bond on 25 May 2016.
Volume: A$750m
Coupon type: floating rate note
Coupon rate: 3m BBSW +77bps
Issue/re offer price: par
Margin to swap: 77bps/3m BBSW
Maturity date: 3 June 2019
Export Development Canada (EDC)
EDC priced a new five year fixed rate bond on 27 May 2016.
Volume: A$300m
Coupon type: fixed
Coupon rate: 2.4%
Issue/re offer price: 99.86%
Issue yield: 2.43%
Margin to ACGB: 64.5bps/May 2021
Maturity date: 7 June 2021
Hyundai Capital Services (Hyundai)
Hyundai priced a new, five year fixed rate bond on 30 May 2016.
Increase volume: A$350m
Coupon type: fixed
Coupon rate: 3.5%
Issue/re offer price: 99.671%
Issue yield: 3.5725%
Margin to swap: 160bps
Margin to ACGB: 177.5bps/May 2021
Maturity date: 3 June 2021
International Finance Corporation (IFC)
IFC priced an increase to its 2026 fixed rate bond on 24 May 2016.
Increase volume: A$50m
Outstanding volume in this line: A$450m
Coupon type: fixed
Coupon rate: 3.2%
Issue/re offer price: 103.665% (plus 1.143% accrued)
Issue yield: 2.7825%
Margin to ACGB: 50.75bps/April 2026
Margin to swap: 49bps
Maturity date: 22 July 2026
La Trobe Financial (La Trobe)
On May 30, La Trobe launched its third ever nonconforming RMBS transaction. La Trobe financial capital markets trust 2016 1 will have aggregate volume of A$250m and an eight tranche structure.
Total deal volume: A$250m
Deal type: residential mortgage backed securities
| Note class | Tranche volume (A$m) | WAL (years) | Margin to swap |
| A 1 | 150.0 | n/a
| 1m BBSW +170–180bps
|
| A 2a | 27.5 | n/a
| n/a
|
| A 2b | 27.5 | n/a
| n/a
|
| B | 13.0 | n/a
| n/a
|
| C | 11.0 | n/a
| n/a
|
| D | 9.0 | n/a | n/a
|
| E | 5.0 | 3.7 | 1m BBSW +750bps |
| F | 3.0 | 2.3 | 1m BBSW +825bps |
*Initial price guidance only.
Province of Ontario
Province of Ontario priced a tap to its August 2025 bond on 26 May 2016.
Volume: A$60m
Outstanding volume in this line: A$365m
Coupon type: fixed
Coupon rate: 3.1%
Issue/re offer price: 100.217% (plus 0.826% accrued)
Issue yield: 3.0725%
Margin to ACGB: 81.75bps/April 2025
Maturity date: 20 August 2025
QPH Finance Company (Port of Brisbane)
Port of Brisbane launched and priced a new seven year bond on 26 May 2016.
Volume: A$250m
Coupon type: fixed
Coupon rate: 3.75%
Issue/re offer price: 98.787%
Issue yield: 3.95%
Margin to swap: 180bps
Maturity date: 7 June 2023
Westpac Banking Corporation (Westpac)
Westpac priced its new five year domestic benchmark bond on May 26 2016, including an A$500m green bond tranche. The transaction is the third green bond to be issued by an Australian bank.
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.
Tranche: fixed rate green bond
Volume: A$500m
Coupon rate: 3.1%
Issue/re offer price: 99.725%
Issue yield: 3.16%
Margin to swap: 117bps
Maturity date: 3 June 2021
Tranche: floating rate note
Volume: A$1.8bn
Coupon rate: 3m BBSW +117bps
Issue/re offer price: par
Margin to swap: 117bps/3m BBSW
Maturity date: 3 June 2021
World Bank
World Bank priced an increase to its January 2021 bond on 24 May 2016.
Increase volume: A$800m
Outstanding volume in this line: A$1.9bn
Coupon type: fixed
Coupon rate: 2.8%
Issue/re offer price: 101.913%
Issue yield: 2.36%
Margin to ACGB: 54.75bps/May 2021
Maturity date: 13 January 2021
Source: KangaNews, FIIG Securities