New issues for the period 27 September – 4 October 2016 including: BNG Bank, Dexus Wholesale Property Fund, Inter American Development Bank, Nederlandse Waterschapsbank, Pepper Australia, Qantas Airways, Suncorp subsidiary AAI and Transurban Queensland
BNG Bank
BNG Bank launched a minimum A$25m increase to its August 2016 kangaroo bond on 4 October 2016. It has indicative price guidance of 75bps over semi quarterly swap and 74bps over Australian Commonwealth government bond (ACGB).
Dexus Wholesale Property Fund (DWPF)
DWPF priced an increase to its June 2025 domestic bond on 29 September 2016.
Volume: A$65m
Outstanding volume in this line: A$115m
Coupon type: fixed
Coupon rate: 4.75%
Issue/re offer price: 109.259% (plus 1.441% accrued)
Issue yield: 3.505%
Margin to swap: 165bps
Maturity date: 16 June 2025
Inter American Development Bank (IADB)
IADB mandated a new April 2027 maturity kangaroo bond on 4 October 2016. It has indicative price guidance in the area of 50bps over semi quarterly swap. IADB most recently issued in the kangaroo market in August this year, with an A$50m tap to its June 2026 line.
Nederlandse Waterschapsbank (NWB)
NWB launched an increase to its September 2026 kangaroo bond on 4 October 2016. The line debuted in February 2016 for volume of A$50m at 77bps over Australian Commonwealth government bond (ACGB).
Pepper Australia (Pepper)
Initial price guidance has been assigned to Pepper's latest residential mortgage backed securities (RMBS) transaction. It has a 12 tranche structure and aggregate volume of A$600m.
| Tranche | Volume ($m) | Price guidance (bps/1M BBSW) |
| A1-ua | US125 | ND |
| A1-ub | US30.5 | ND |
| A1-uf | A52.7 | ND
|
| A1-a | A160 | 150 to 155 |
| A2 | A76.2 | 220
|
| B | A57 | 290
|
| C | A11.4 | ND
|
| D | A10.8 | ND
|
| E | A7.2 | ND
|
| F | A7.8 | ND
|
| G1 | A3 | ND
|
| G2 | A6.6 | ND |
Qantas Airways (Qantas)
Qantas returned to the domestic market and issued both seven and ten year fixed rate bonds on 29 and 30 September 2016 respectively.
Seven year domestic bond
Volume: A$250m
Outstanding volume in this line: A$250m
Coupon type: fixed
Coupon rate: 4.4%
Issue/re offer price: 99.628%
Issue yield: 4.4625%
Margin to swap: 258bps
Margin to ACGB: 265bps/April 2023
Maturity date: 10 October 2023
Ten year domestic bond
Volume: A$175m
Outstanding volume in this line: A$175m
Coupon type: fixed
Coupon rate: 4.75%
Issue/re offer price: 99.764%
Issue yield: 4.78%
Margin to swap: 280bps
Margin to ACGB: 286.5bps/April 2023
Maturity date: 12 October 2026
Suncorp subsidiary AAI (AAI)
AAI issued A$330m in a new subordinated Tier 2 domestic bond on 27 September 2016.
Volume: A$330m
Outstanding volume in this line: A$330m
Coupon type: floating rate note
Coupon rate: 3m BBSW+320bps
Issue/re offer price: par
Margin to swap: 320bps/3m BBSW
Maturity date: 6 October 2042
Transurban Queensland
Transurban Queensland launched a new minimum A$200m senior secured bond on 4 October 2016. Initial price guidance for the seven year fixed rate bond is 185bps to 190bps over semi quarterly swap.
Transurban Queensland last issued in the domestic market as Sun Group Finance in 2014.
Source: KangaNews/FIIG Securities