New issues for the period 10 October – 17 October 2017 including: ADB, ADCB, Auckland Airport, Citigroup, EDC, Heritage Bank, KfW, QTC, Resimac, Spark Finance and UED
Abu Dhabi Commercial Bank (ADCB)
ADCB issued a new A$400m triple tranche kangaroo bond on 16 October 2017.
Five-year FRN
Volume: A$150m
Total outstanding in the line: A$150m
Coupon rate: 3m BBSW +138bps
Issue/re-offer price: par
Margin to swap: 138bps/3m BBSW
Maturity date: 25 October 2022
Five year fixed
Tranche year: 2022
Volume: A$100m
Total outstanding in the line: A$100m
Coupon yield: 3.75%
Issue/re-offer price: 99.74%
Issue yield: 3.8075%
Margin to swap: 138bps/s-q
Maturity date: 25 October 2022
10 year fixed
Volume: A$150m
Total Outstanding in the line: A$150m
Coupon rate: 4.5%
Issue/re-offer price: 99.602%
Issue yield: 4.55%
Margin to swap: 170bps/s-q
Maturity date: 25 October 2027
Asian Development Bank (ADB)
ADB priced an increase to its 2027 kangaroo bond on 12 October 2017.
Volume: A$150m
Total outstanding in the line: A$800m
Coupon type: fixed
Coupon rate: 3.4%
Issue/re-offer price: 100.877% (plus 0.404% accrued)
Issue yield: 3.295%
Margin to swap: 45bps/s-q
Margin to ACGB: 53.5/April 2027
Maturity date: 10 September 2027
Auckland International Airport (Auckland Airport)
Auckland Airport priced an increase to its 2027 kangaroo bond on 13 October 2017.
Volume: A$110m
Total outstanding in the line: A$260m
Coupon type: fixed
Coupon rate: 4.5%
Issue/re-offer price: 104.145% (plus 0.323% accrued)
Issue yield: 3.99%
Margin to swap: 118bps/s-q
Maturity date: 23 September 2027
Citigroup (Citi)
Citi issued a new, A$1.631bn Securitised Australian Mortgage Trust 2017-1 on 12 October 2017.
| Note class | Tranche volume (A$m) | Tranche rating | Weighted average life (years) | Margin to swap (bps/1m BBSW) | Initial credit support |
| A | 1500 | AAA/Aaa | 2.6 | 97 | 8% |
| AB | 49 | AAA/NR | 7.8 | ND | 5% |
| B | 82 | NR/NR | 7.8 | ND | N/A |
Export Development Canada (EDC)
EDC issued a new, A$550m five year kangaroo bond on 12 October 2017.
Volume: A$550m
Total outstanding in the line: A$550m
Coupon type: fixed
Coupon rate: 2.7%
Issue/re-offer price: 99.768%
Issue yield: 2.75%
Margin to swap: 32bps/s-q
Margin to ACGB: 43bps/July 2022
Maturity date: 24 October 2022
Heritage Bank
Heritage Bank issued a new, A$750m HBS Trust 2017-1 on 11 October 2017.
| Note class | Tranche volume (A$m) | Tranche rating | Weighted average life (years) | Margin to swap (bps/1m BBSW) | Initial credit support |
| A1 | 690 | AAA/AAA | 3.3 | 107 | 8% |
| A2 | 22.5 | AAA/AAA | 3.3 | 120 | 5% |
| AB | 19.125 | AAA/AAA | 6.5 | 160 | 2.45% |
| B | 10.875 | AA/NR | 6.5 | 200 | 1% |
| C | 6 | A+/NR | 6.5 | 285 | 0.2% |
| D | 1.5 | NR/NR | 6.5 | 590 | N/A |
KfW Bankengruppe (KfW)
KfW priced an increase to its 2022 kangaroo bond on 11 October 2017.
Volume: A$350m
Total outstanding in this line: A$2.25bn
Coupon type: fixed
Coupon rate: 5.5%
Issue/re-offer price: 111.632% (plus 1.06% accrued)
Issue yield: 2.625%
Margin to swap: 31bps/s-q
Margin to ACGB: 29.25bps/July 2022
Maturity date: 9 February 2022
Queensland Treasury Corporation (QTC)
QTC issue a new, A$1.75bn syndicated benchmark on 12 October 2017.
Volume: A$1.75bn
Total outstanding in this line: A$1.75bn
Coupon type: fixed
Coupon rate: 3.5%
Issue/re-offer price: 98.874%
Issue yield: 3.61%
Margin to ACGB: 68.5bps/April 2029
Margin to EFP: 75bps
Maturity date: 21 August 2030
Resimac
Resimac’s nonconforming residential mortgage backed securities transaction, Resimac Bastille Trust Series 2017-1, progressed to launch on 16 October 2017.
The potential deal structure is as follows:
| Tranche | Indicative volume (A$m) | Expected rating (Moody's/Fitch) | Weighted average life (years) | Credit enhancement (per cent) | Price guidance (bps/1m BBSW) |
| A1 | 350 | Aaa/AAA | 2 | 30 | 130 area |
| A2 | 75 | Aaa/AAA | 2 | 15 | 190 area |
| B | 39 | Aa2/NR | 3.4 | 7.2 | 215-220 area |
| C | 9.5 | A2/NR | 3.4 | 5.3 | 310 area |
| D | 9.5 | Baa2/NR | 3.4 | 3.4 | 410 area |
| E | 6 | Ba2/NR | 3.4 | 2.2 | 610 area |
| F | 5.5 | B2/NR | 2.6 | 1.1 | 710 area |
| G | 5.5 | NR/NR | 4 | NA | ND |
Source: National Australia Bank
Spark Finance (Spark)
Spark issued a new A$150m debut kangaroo bond on 12 October 2017.
Volume: A$150m
Total outstanding in the line: A$150m
Coupon type: fixed
Coupon rate: 4%
Issue/re-offer price: 98.964%
Issue yield: 4.1275%
Margin to swap: 125bps/s-q
Maturity date: 20 October 2027
United Energy Distribution (UED)
UED issued a new, A$170m seven year domestic bond on 12 October 2017.
Volume: A$170m
Total outstanding in the line: A$170m
Coupon type: fixed
Coupon rate: 3.85%
Issue/re-offer price: 99.696%
Issue yield: 3.9%
Margin to swap: 125bps/s-q
Maturity date: 23 October 2024
Source: KangaNews