New issues for the period 7 June – 14 June 2016 including: Auswide Bank, Fonterra Cooperative Group, Local Government Funding Vehicle, National Australia Bank and Suncorp Metway
Auswide Bank (Auswide)
Auswide is the latest smaller ADI to enter the Tier 2 market with its debut deal.
Volume: A$13m
Coupon type: floating rate note
Coupon rate: 3m BBSW +480bps
Issue/re offer price: par
Margin to swap: 480bps/30 BBSW
Maturity date: 17 June 2026
Fonterra Cooperative Group (Fonterra)
Fonterra priced its first kangaroo transaction on 8 June 2016.
Volume: A$125m
Coupon type: fixed
Coupon rate: 3.75%
Issue/re offer price: 98.199%
Issue yield: 3.97%
Margin to swap: 170 bps
Maturity date: 16 June 2026
Local Government Funding Vehicle (LGFV)
On 10 June 2016, LGFV mandated Commonwealth Bank of Australia and National Australia Bank to engage investors on a potential ten year Australian dollar transaction. Initial price guidance is in the area of 145 to 150 basis points (bps) over semi quarterly swap.
The forthcoming transaction will be LGFV’s second deal in the Australian market, with the debut deal having priced in November 2014 for an aggregate volume of A$240m.
National Australia Bank (NAB)
On 9 June NAB priced its first prime RMBS transaction of 2016.
| Note class | Tranche volume (A$m) | WAL (years) | Margin to swap | Initial credit support |
| A | 1840 | 3 | 1m BBSW +127bps
| 8% |
| B | 120 | ND | ND | 2% |
| C | 40 | ND | ND
| 0% |
Suncorp Metway (Suncorp)
On 14 June 2016, Suncorp has launched its fourth domestic covered bond transaction. The forthcoming five year bond has indicative price guidance of 105 to 110bps over three month bank bills.
Suncorp is Australia’s only domestic covered bond issuer other than the big four banks.
Source: KangaNews/FIIG Securities