New issues for the period 31 May – 7 June 2016 including: Apple, The Coca Cola Company, Commonwealth Bank of Australia, Kommunalbanken Norway, National Australia Bank, Tasmanian Public Finance Corporation and Western Australia Treasury Corporation
Apple
Apple priced its second ever kangaroo transaction on 3 June 2016.
| Volume (A$m) | Maturity date | Coupon type | Coupon rate | Issue/re offer price | Issue yield | Margin to swap | Margin to ACGB |
| 650 | 10/06/2020 | fixed | 2.65%
| 99.901% | 2.676% | 82 bps | 105.6 bps/April 2020 |
| 450 | 10/01/2024 | fixed | 3.35%
| 99.932% (plus 1.399% accrued) | 3.36% | 125 bps | 126.7 bps/April 2024 |
| 325 | 10/06/2026 | fixed | 3.6%
| 99.917% | 3.61% | 135 bps | 139.5 bps/April 2026 |
The Coca Cola Company (Coca Cola)
Coca Cola priced its debut deal, a four and eight year senior unsecured kangaroo transaction, on June 1 2016.
Four year fixed
Volume: A$450m
Coupon type: fixed
Coupon rate: 2.6%
Issue/re offer price: 99.97%
Issue yield: 2.608%
Margin to swap: 67 bps
Maturity date: 9 June 2020
Eight year fixed
Volume: A$550m
Coupon type: fixed
Coupon rate: 3.250%
Issue/re offer price: 99.756%
Issue yield: 3.825%
Margin to swap: 105 bps
Maturity date: 11 June 2024
Commonwealth Bank of Australia (CBA)
CBA priced a new, self led subordinated bond offer on 31 May 2016.
Volume: A$750m
Coupon type: floating rate note
Coupon rate: 3m BBSW +265bps
Issue/re offer price: par
Margin to swap: 265bps/3m BBSW
Maturity date: 3 June 2026
IMB
IMB priced a new Tier 2 transaction on 6 June 2016.
Volume: A$30m
Coupon type: floating rate note
Coupon rate: 3m BBSW +375bps
Issue/re offer price: par
Margin to swap: 375bps/3m BBSW
Maturity date: 15 June 2026
Kommunalbanken Norway (KBN)
KBN priced a new fixed rate kangaroo bond on 2 June 2016.
Volume: A$50m
Coupon type: fixed
Coupon rate: 3%
Issue/re offer price: 99.821%
Issue yield: 3%
Margin to ACGB: 76.5bps/April 2026
Maturity date: 9 December 2026
National Australia Bank (NAB)
On 6 June NAB launched its first prime RMBS transaction of 2016. It consists of three tranches of notes with indicative volume of A$750m. Both class B and C notes are being retained.
| Note class | Tranche volume (A$m) | WAL (years) | Margin to swap |
| A | 690 | 3 | 1m BBSW +130bps
|
| B | 45 | n/a | n/a |
| C | 15 | n/a | n/a
|
Province of Alberta (Alberta)
Alberta priced its debut fixed rate kangaroo bond on 3 June 2016.
Volume: A$125m
Coupon type: fixed
Coupon rate: 2.4%
Coupon rate: 3.1%
Issue/re offer price: 99.202%
Issue yield: 3.19%
Margin to ACGB: 96bps/April 2026
Maturity date: 14 December 2026
Tasmanian Public Finance Corporation (Tascorp)
Tascorp mandated a new, syndicated February 2028 maturity transaction on 6 June 2016. Tascorp’s most recent benchmark syndication was in August last year, when it priced an A$300m February 2026 bond at 50.25 basis points over an Australian Commonwealth government bond. Tascorp has since issued A$55m and A$45m in a new 30 year line in April and May this year.
Western Australia Treasury Corporation (WATC)
WATC priced a new fixed rate bond on 2 June 2016.
Volume: A$700m
Coupon type: fixed
Coupon rate: 3%
Issue/re offer price: 99.95% (plus 0.41% accrued)
Issue yield: 3.005%
Margin to ACGB: 61bps/November 2027
Maturity date: 21 October 2027
WSO Finance (WSO)
WSO has announced plans to meet with Asian and Australian fixed income investors from 14 June 2016. WSO has recently established an Australian MTN programme.
Source: KangaNews/FIIG Securities