New issues for the period 3 October 2017 – 10 October 2017 including: AfDB, Alberta, Heritage Bank and Resimac
African Development Bank (AfDB)
AfDB priced an increase to its 2027 kangaroo bond on 6 October 2017.
Volume: A$30m
Total outstanding in the line: A$440m
Coupon type: fixed
Coupon rate: 3.30%
Issue/re-offer price: 99.852% (plus 0.699% accrued)
Issue yield: 3.3175%
Margin to ACGB: 55.75bps/April 2027
Maturity date: 27 July 2027
Heritage Bank
Heritage Bank launched an indicative residential mortgage backed securities transaction, HBS Trust 2017-1 on 9 October 2017. The forthcoming deal is expected to price on or before 11 October.
The potential deal structure is as follows:
| Class | Volume (A$m) | Expected ratings (S&P/Fitch) | Weighted average life (years) | Official price guidance (bps/1m BBSW) | Initial price guidance (bps/1m BBSW) |
| A1 | 460 | AAA/AAA | 3.3 | 110 area | 110 area |
| A2 | 15 | AAA/AAA | 3.3 | 125-130 area | 130-135 area |
| AB | 12.75 | AAA/AAA | 6.5 | 160-165 area | 160-165 area |
| B | 7.25 | AA/NR | 6.5 | 205-210 area | 210-215 area |
| C | 4 | A+/NR | 6.5 | 290-295 area | 295-300 area |
| D | 1 | NR/NR | 6.5 | 590 area | 590-600 area |
Source: National Australia Bank
Province of Alberta (Alberta)
Alberta issued a new, A$300m in a dual tranche kangaroo bond on 4 October 2017.
2026 tap
Volume: A$50m
Total outstanding in this line: A$250m
Coupon type: fixed
Coupon rate: 3.10%
Issue/re-offer price: 96.461% (plus 1.008% accrued)
Issue yield: 3.555%
Margin to swap: 72bps/s-q
Margin to ACGB: 84.25bps/April 2026
Maturity date: 14 December 2026
2028 new line
Volume: A$250m
Total outstanding in this line: A$250m
Coupon type: fixed
Coupon rate: 3.60%
Issue/re-offer price: 99.502%
Issue yield: 3.6575%
Margin to swap: 75bps/s-q
Margin to ACGB: 81bps/May 2028
Maturity date: 11 April 2028
Resimac
Resimac disclosed price guidance on its forthcoming issue of nonconforming residential mortgage backed securities, Resimac Bastille Trust Series 2017-1 on 9 October 2017.
The indicative deal structure and pricing is as follows:
| Tranche | Indicative volume (A$m) | Expected rating (Moody's/Fitch) | Weighted average life (years) | Price guidance (bps/1m BBSW) |
| A1 | 350 | Aaa/AAA | 2 | 130 area |
| A2 | 75 | Aaa/AAA | 2 | 190-195 area |
| B | 39 | Aa2/NR | 3.4 | low-mid 200s area |
| C | 9.5 | A2 | 3.4 | low 300s area |
| D | 9.5 | Baa2 | 3.4 | low 400s area |
| E | 6 | Ba2 | 3.4 | low 600s area |
| F | 5.5 | B2 | 2.6 | low 700s area |
Source: National Australia Bank
Source: KangaNews