New issues for the period 19 September – 27 September 2016 including: Bank of Tokyo-Mitsubishi UFJ Sydney Branch, Bankwest, Credit Union Australia, Firstmac, International Finance Corporation, KommuneKredit, MyState Bank, Suncorp subsidiary AAI and Toyota Finance Australia
Bank of Tokyo-Mitsubishi UFJ Sydney Branch (BoTM Sydney)
BoTM Sydney priced a dual tranche A$700m domestic bond on 20 September 2016.
Tranche: fixed rate
Volume: A$150m
Outstanding volume in this line: A$150m
Coupon rate: 2.75%
Issue/re offer price: 99.929%
Issue yield: 2.775%
Margin to swap: 102bp/s swap
Maturity date: 30 September 2019
Tranche: floating rate
Volume: A$550m
Outstanding volume in this line: A$550m
Coupon rate: 3m BBSW +102bps
Issue/re offer price: par
Margin to swap: 102bps/3m BBSW
Maturity date: 30 September 2019
Bankwest
Bankwest’s Swan 2011-1 residential mortgage backed securities (RMBS) class A2 notes refinancing progressed to launch on 26 September 2016. Indicative pricing is in the area of 110 to 115bps over one month bank bill swap rate (BBSW). The notes are expected to have a volume of A$95.8m with a weighted average life (WAL) of two years.
Credit Union Australia (CUA)
CUA launched and priced an increase to its December 2017 domestic bond on 19 September 2016. It is priced with an indicative margin of 100bps over bank bills.
Volume: A$80m
Outstanding volume in this line: A$160m
Coupon type: floating rate note
Coupon rate: 3m BBSW +120bps
Issue/re offer price: 100.244% (plus 0.008% accrued)
Margin to swap: 100bps/3m BBSW
Maturity date: 22 December 2017
Firstmac
Firstmac launched a new, domestic residential mortgage backed securities (RMBS) transaction on 27 September 2016. It will have a six tranches and indicative aggregate volume of A$350m, with an indicative structure below.
| Tranche | Indicative volume (A$m) | Price guidance |
| A1 | 297.50 | 135bps +1M BBSW |
| A2 | 24.50 | 190 area +1M BBSW |
| B | 20.65 | Mid 200 area +1M BBSW |
| C | 3.85 | 325 area +1M BBSW |
| D | 2.66 | High 500 area +1M BBSW |
| E | 0.84 | ND |
International Finance Corporation (IFC)
IFC priced an increase to its July 2026 kangaroo bond on 26 September 2016.
Volume: A$50m
Outstanding volume in this line: A$825m
Coupon type: fixed
Coupon rate: 3.2%
Issue/re offer price: 106.381% (plus 0.661% accrued)
Issue yield: 2.4625%
Margin to swap: 49bps
Margin to ACGB: 49.25bps/April 2026
Maturity date: 22 July 2026
KommuneKredit
KommuneKredit priced an increase to its November 2026 kangaroo bond on 23 September 2016.
Volume: A$100m
Outstanding volume in this line: A$415m
Coupon type: fixed
Coupon rate: 2.9%
Issue/re offer price: 101.231% (plus 0.993% accrued)
Issue yield: 2.76%
Margin to ACGB: 77bps/April 2026
Margin to swap: 73bps
Maturity date: 27 November 2026
MyState Bank
MyState Bank priced a domestic Tier 2 bond on 22 September 2016.
Volume: A$10m
Outstanding volume in this line: A$10m
Coupon type: floating rate note
Coupon rate: 3m BBSW +425bps
Issue/re offer price: par
Margin to swap: 425bps/3m BBSW
Maturity date: 28 September 2026
Suncorp subsidiary AAI (AAI)
AAI launched a new, minimum A$250m, subordinated Tier 2 bond on 27 September 2016. The Australian dollar denominated, 26 year notes with a non call six year structure have initial price guidance in the area of 320 to 330bps over three month BBSW.
Toyota Finance Australia (TFA)
TFA launched and priced a A$150m domestic bond on 21 September 2016.
Volume: A$150m
Outstanding volume in this line: A$150m
Coupon type: floating rate note
Coupon rate: 3m BBSW +40bps
Issue/re offer price: par
Margin to swap: 40bps/3m BBSW
Maturity date: 28 September 2017
Source: KangaNews/FIIG Securities