New issues for the period 11 October – 18 October 2016 including: APA Group, Australian Office of Financial Management, Bank of Queensland, Colonial Holding Company, ME Bank, NAB and Province of Manitoba
APA Group (APA)
APA issued a new, seven year domestic bond on 13 October 2016.
Volume: A$200m
Outstanding volume in this line: A$200m
Coupon type: fixed
Coupon rate: 3.75%
Issue/re offer price: 99.391%
Issue yield: 3.85%
Margin to swap: 180bps
Maturity date: 20 October 2023
Australian Office of Financial Management (AOFM)
AOFM issued A$7.6bn in a curve extending, 2047 maturity government bond on 12 October 2016. The government bond is Australia’s longest and largest issue to date.
Volume: A$7.6bn
Outstanding volume in this line: A$7.6bn
Coupon type: fixed
Coupon rate: 3%
Issue/re offer price: 94.820% (plus 0.232% accrued)
Issue yield: 3.27%
Margin to EFP: 101bps
Maturity date: 21 March 2047
Bank of Queensland (BOQ)
BOQ launched and priced a new A$600m domestic floating rate note on 13 October 2016.
Volume: A$600m
Outstanding volume in this line: A$600m
Coupon type: floating rate note
Coupon rate: 3m BBSW +117bps
Issue/re offer price: par
Margin to swap: 117bps/3m BBSW
Maturity date: 26 October 2020
Colonial Holding Company (Colonial Holding)
Colonial Holding issued a new, A$250m domestic bond on 13 October 2016.
Volume: A$250m
Outstanding volume in this line: A$250m
Coupon type: floating rate note
Coupon rate: 3m BBSW+120bps
Issue/re offer price: par
Margin to swap: 120bps/3m BBSW
Maturity date: 20 January 2020
ME Bank (ME)
On 14 October, ME priced its first residential mortgage backed securities (RMBS) issue of 2016. The issue is indicatively priced across five tranches with an aggregate volume of A$1.5bn.
| Tranche | Indicative volume (A$m) | WAL (years) | Margin to swap (bps/BBSW) | Initial credit support |
| A1 | 1,380 | 2.7 | 118bps/1m BBSW | 8% |
| A2 | 46.5 | 2.7 | 175bps/1m BBSW | 4.9% |
| B | 43.5 | 5.6 | 250bps/1m BBSW
| 2% |
| C | 18 | 5.6 | 315bps/1m BBSW
| 0.8% |
| D | 4.5 | 5.6 | 415bps/1m BBSW
| 0.5% |
| E | 7.5 | 5.6 | 615bps/1m BBSW
| ND
|
National Australia Bank (NAB)
NAB revealed price guidance on its forthcoming senior unsecured domestic bond on 17 October 2016. It disclosed a minimum A$750m volume and an indicative margin on the five year transaction, in the area of 105 basis points (bps) over three month bank bill swap rate (BBSW).
Province of Manitoba (Manitoba)
Manitoba priced an increase to its June 2026 kangaroo bond on 13 October 2016.
Volume: A$50m
Outstanding volume in this line: A$290m
Coupon type: fixed
Coupon rate: 3.75%
Issue/re offer price: 106.947% (plus 1.363% accrued)
Issue yield: 2.9175%
Margin to swap: 79bps
Margin to ACGB: 73bps/April 2026
Maturity date: 9 June 2026
Source: KangaNews/FIIG Securities