New issues for the period 13 September 2017 – 19 September 2017 including: Firstmac, IDB, IFC, La Trobe, Lloyds, Macquarie, ME Bank, Munifin, NWB, Qudos, Rentenbank, Suncorp, Westpac and World Bank
Firstmac
Firstmac launched a A$500m minimum prime residential mortgage backed securities (RMBS) transaction on 19 September 2017. The Firstmac Mortgage Funding Trust No. 4 Series 2017-2 is expected to price on 22 September 2017.
The Firstmac 2017-2 RMBS deal structure is as follows:
| Class | Volume (A$m) | Rating (S&P/Fitch) | WAL (years) | Credit enhancement | Official price guidance (bps/1m BBSW) | Initial price guidance (bps/1m BBSW) |
| A1 | 425 | AAA/AAA | 3.0 | 15 | 114-115 (will price in range)
| 115 area |
| A2 | 35 | AAA/AAA | 4.0 | 8 | 145-150
| 145-150 area
|
| AB | 28 | AAA/NR | 5.0 | 2.4 | 170-180
| 170-180 area
|
| B | 9 | AA-/NR | 5.0 | 0.6 | low 200s area
| low 200s area
|
| C | 2.5 | A/NR | 5.0 | 0.1 | low 300s area
| low 300s area
|
| D | 0.5 | NR/NR | 7.0 | N/A | ND | ND |
Source: Arranger 19 September 2017
Inter-American Development Bank (IDB)
IDB priced an increase to its 2028 kangaroo bond on 14 September 2017.
Volume: A$45m
Total outstanding in this line: A$170m
Coupon type: fixed
Coupon rate: 3.1%
Issue/re-offer price: 98.400% (plus 0.295% accrued)
Issue yield: 3.2825%
Margin to swap: 45bps/s-q
Margin to ACGB: 51.75bps/May 2028
Maturity date: 22 February 2028
International Finance Corporation (IFC)
IFC priced an increase to its 2027 kangaroo bond on 15 September 2017.
Volume: A$50m
Total outstanding in this line: A$300m
Coupon type: fixed
Coupon rate: 3.2%
Issue/re-offer price: 99.444%
Issue yield: 3.265%
Margin to swap: 45bps/s-q
Margin to ACGB: 57bps/April 2027
Maturity date: 18 October 2027
La Trobe Financial Capital Markets Trust 2017-2 (La Trobe)
La Trobe priced an increase to its capital markets Trust 2017-2 on 13 September 2017.
| Note class | Tranche volume | Tranche rating | WAL (years) | Margin to swap | Initial credit |
| A1 | A$286m | AAA/Aaa | 2.2 | 135bps/1m BBSW
| 45% |
| A2 | A$78m
| AAA/Aaa | 2.2
| 175bps/1m BBSW
| 30% |
| A3 | A$83.2m
| AAA/Aaa
| 2.2
| 190bps/1m BBSW | 14% |
| B | A$37.4m | NR/Aa1
| 3.8 | 240bps/1m BBSW
| 6.8% |
| C | A$7.3m | NR/A1
| 3.8
| 345bps/1m BBSW
| 5.4% |
| D | A$10.4m
| NR/Baa1
| 3.8
| 430bps/1m BBSW
| 3.4% |
| E | A$6.8m
| NR/Ba1
| 3.8
| 610bps/1m BBSW
| 2.1% |
| F | A$5.7m | NR/B1 | 3.0 | 725bps/1m BBSW
| 1.0% |
| Equity | A$5.2m
| NR/NR
| 4.1 years
| ND | N/A |
Lloyds Banking Group (Lloyds)
Lloyds issued a new, A$650m dual tranche domestic bond on 13 September 2017.
Fixed-rate tranche
Volume: A$400m
Total outstanding in this line: A$400m
Coupon rate: 3.65%
Issue/re-offer price: 99.827%
Issue yield: 3.685%
Margin to swap: 130bps/s-q
Floating-rate tranche
Volume: A$250m
Total outstanding in this line: A$250m
Coupon rate: 3m BBSW +130bps
Issue/re-offer price: par
Margin to swap: 130bps/3m BBSW
Maturity date: 20 March 2023
Macquarie Bank (Macquarie)
Macquarie priced an increase to its 2018 domestic floating rate note on 13 September 2017.
Volume: A$25m
Total outstanding in this line: A$300m
Coupon type: FRN
Coupon rate: 3m BBSW +34bps
Issue/re-offer price: 100.004% (plus 0.074% accrued)
Margin to swap: 34bps/3m BBSW
Maturity date: 6 September 2018
ME Bank
ME Bank issued a new, A$1.5bn in SMHL Series securitisation fund 2017-1 RMBS on 14 September 2017.
| Note class | Tranche volume | Tranche rating | WAL (years) | Margin to swap | Initial credit support |
| A | A$1.38bn
| AAA/Aaa
| 2.6
| 98bps/1m BBSW
| 8% |
| AB | A$56.25m
| AAA/NR
| 4.7
| 155bps/1m BBSW
| 4.25% |
| B | A$26.25m
| AA/NR
| 4.7 | 215bps/1m BBSW
| 2.5% |
| C | A$21m
| A/NR
| 4.7 | 290bps/1m BBSW
| 1.1% |
| D | A$7.5m
| BBB/NR
| 4.7 | 380bps/1m BBSW
| 0.6% |
| E | A$9m
| NR/NR
| 4.7 | 590bps/1m BBSW
| N/A |
Municipality Finance (MuniFin)
MuniFin priced an increase to its 2027 kangaroo bond on 14 September 2017.
Volume: A$20m
Total outstanding in this line: A$120m
Coupon type: fixed
Coupon rate: 3.4%
Issue/re-offer price: 99.976%
Issue yield: 3.4025%
Margin to swap: 62bps/s-q
Margin to ACGB: 72.25bps/April 2027
Maturity date: 13 July 2027
NWB Bank (NWB)
NWB priced an increase to its 2027 kangaroo bond on 19 September 2017.
Volume: A$125m
Total outstanding in this line: A$375m
Coupon type: fixed
Coupon rate: 3.5%
Issue/re-offer price: 100.162%
Issue yield: 3.48%
Margin to swap: 64bps/s-q
Margin to ACGB: 72.75bps/April 2027
Maturity date: 20 July 2017
Qudos Mutual (Qudos)
Qudos issued a new, A$25m one year domestic floating rate note on 13 September 2017.
Volume: A$25m
Total outstanding in this line: A$25m
Coupon type: FRN
Coupon rate: 3m BBSW +90bps
Issue/re-offer price: par
Margin to swap: 90bps/3m BBSW
Maturity date: 20 September 2018
Rentenbank
Rentenbank priced an increase to its 2022 kangaroo bond on 18 September 2017.
Volume: A$50m
Total outstanding in this line: A$1.05bn
Coupon type: fixed
Coupon rate: 5.5%
Issue/re-offer price: 111.941%
Issue yield: 2.6725%
Margin to swap: 30bps/s-q
Margin to ACGB: 31.85bps/July 2022
Maturity date: 29 March 2022
Suncorp-Metway (Suncorp)
Suncorp launched its A$750m Apollo Series 2017-2 RMBS on 18 September 2017. The seven tranche transaction is expected to price on or before 22 September 2017.
The Suncorp 2017-2 RMBS deal structure is as follows:
| Tranche | Indicative volume (A$m)
| WAL (years) | Official price guidance (bps/1m BBSW)
| Initial price guidance (bps/1m BBSW) | Expected rating (S&P/Fitch)
|
| A1 | 690 | 3.0 | 103 area
| "low 100s"
| AAA/AAA
|
| A2 | 15 | 3.0 | 135 area
| 135-140 area
| AAA/AAA
|
| AB | 16.125 | 5.7 | 155 area
| 155 area
| AAA/AAA |
| B | 11.25 | 5.7 | 215 area
| 215 area
| AA/NR
|
| C | 8.625 | 5.7 | 290 area
| 290 area
| A/NR
|
| D | 4.125 | 5.7 | 380 area
| 380 area
| BBB/NR
|
| E | 4.875 | 5.7 | 590 area
| 590 area
| NR
|
Source: National Australia Bank
Westpac Banking Corporation (Westpac)
Westpac priced an increase to its 2020 floating rate note on 11 September 2017.
Volume: A$800m
Total outstanding in this line: A$2.9bn
Coupon type: FRN
Coupon rate: 3m BBSW +108bps
Issue/re-offer price: 101.405% (plus 0.395% accrued)
Margin to swap: 61bps/3m BBSW
Maturity date: 28 October 2020
World Bank
World Bank issued a new, A$850m five year kangaroo bond on 13 September 2017.
Volume: A$850m
Total outstanding in this line: A$850m
Coupon type: fixed
Coupon rate: 2.6%
Issue/re-offer price: 99.721%
Issue yield: 2.66%
Margin to swap: 33bps/s-q
Margin to ACGB: 44.5bps/July 2022
Maturity date: 20 September 2022
Source: KangaNews