New issues for the period 14 February – 20 February 2018 including: AfDB, Bluestone, CBA, IFC, NWB and Manitoba
African Development Bank (AfDB)
AfDB priced an increase to its 2028 kangaroo bond on 15 February 2018.
Volume: A$125m
Total outstanding in the line: A$535m
Coupon type: fixed
Coupon rate: 3.35%
Issue/re-offer price: 99.28%
Issue yield: 3.4325%
Margin to swap: 44bps/s-q
Margin to ACGB: 50.25bps/May 2028
Maturity date: 8 August 2028
Bluestone Group (Bluestone)
Bluestone launched its residential mortgage backed securities transaction, the Sapphire XVIII 2018-1 Trust, on 19 February 2018. The transaction is expected to price on or before 21 February.
The Sapphire XVII 2018-1 Trust indicative structure and price guidance is as follows:
Tranche | Indicative volume | Expected rating | Weighted average life | Credit support | Indicative price guidance (bps/1m BBSW) |
| A1 | A$125m | Aaa | 2.1 years | 50% | 120 area |
| A2 | A$50m
| Aaa | 2.1 years | 30% | 160 area |
| A3 | A$29m
| Aaa | 2.1 years
| 18.4% | 180 area |
| B | A$24.75m
| Aa2 | 3.6 years
| 8.5% | ND |
| C | A$6.5m
| A2 | 3.6 years
| 5.9% | ND |
| D | A$5m
| Baa2 | 3.6 years
| 3.9% | ND |
| E | A$4.5m
| Ba2 | 3.6 years
| 2.1% | ND |
| F | A$2.5m
| B2 | 3.6 years
| 1.1% | 710 area |
| G | A$1.5m
| NR | 2.3 years | 0.5% | 1,050 area |
| H | A$1.25m
| NR
| 4 years | n/a | ND |
| X1 | A$6m
| NR
| 1 year | n/a | 8.5% |
| X2 | ND | NR
| ND | n/a | ND |
Source: KangaNews
Commonwealth Bank of Australia (CBA)
CBA priced an increase to its 2028 domestic bond on 14 February 2018.
Volume: A$50m
Total outstanding in the line: A$150m
Coupon type: fixed
Coupon rate: 3.75%
Issue/re-offer price: 98.956% (plus 0.29% accrued)
Issue yield: 3.8775%
Margin to swap: 100bps/s-q
Margin to ACGB: 103.75bps/May 2028
Maturity date: 25 January 2028
CBA priced an increase to refinance its residential mortgage backed securities transaction, the Medallion 2013-1 notes, on 14 February 2018.
Note class: A3-R
Tranche volume: A$250m
Total deal volume: A$250m
Tranche rating: AAA/AAA
WAL: 3.2 years
Margin to swap: 80bps/1m BBSW
Initial credit support: 16.3%
International Finance Corporation (IFC)
IFC priced an increase to its 2027 kangaroo bond on 14 February 2018.
Volume: A$50m
Total outstanding in the line: A$650m
Coupon type: fixed
Coupon rate: 3.2%
Issue/re-offer price: 99.484% (plus 1.116% accrued)
Issue yield: 3.2625%
Margin to swap: 41bps/s-q
Margin to ACGB: 44.25bps/November 2027
Maturity date: 18 October 2027
NWB Bank (NWB)
NWB priced an increase to its 2028 kangaroo bond on 13 February 2018.
Volume: A$40m
Total outstanding in the line: A$255m
Coupon type: fixed
Coupon rate: 3.45%
Issue/re-offer price: 99.738%
Issue yield: 3.48%
Margin to swap: 54bps/s-q
Margin to ACGB: 60bps/May 2028
Maturity date: 17 July 2028
NWB priced an increase to its 2028 kangaroo bond on 14 February 2018.
Volume: A$30m
Total outstanding in the line: A$285m
Coupon type: fixed
Coupon rate: 3.45%
Issue/re-offer price: 100.193%
Issue yield: 3.4275%
Margin to swap: 54bps/s-q
Margin to ACGB: 60.25bps/May 2028
Maturity date: 17 July 2028
NWB priced an increase to its 2028 kangaroo bond on 16 February 2018.
Volume: A$50m
Total outstanding in the line: A$335m
Coupon type: fixed
Coupon rate: 3.45%
Issue/re-offer price: 99.393% (plus 0.4% accrued)
Issue yield: 3.52%
Margin to EFP: 62bps
Margin to ACGB: 61.5bps/May 2028
Maturity date: 17 July 2028
Province of Manitoba (Manitoba)
Manitoba priced an increase to its 2027 kangaroo bond on 12 February 2018.
Volume: A$15m
Total outstanding in the line: A$275m
Coupon type: fixed
Coupon rate: 3.6%
Issue/re-offer price: 101.326%
Issue yield: 3.435%
Margin to swap: 55bps/s-q
Margin to ACGB: 59bps/April 2027
Maturity date: 17 August 2027
Manitoba priced an increase to its 2027 kangaroo bond on 14 February 2018.
Volume: A$25m
Total outstanding in the line: A$300m
Coupon type: fixed
Coupon rate: 3.6%
Issue/re-offer price: 101.733%
Issue yield: 3.38%
Margin to swap: 55bps/s-q
Margin to ACGB: 59bps/April 2027
Maturity date: 17 August 2027
Manitoba issued a new, A$65m 10.5 year kangaroo bond on 15 February 2018.
Volume: A$65m
Total outstanding in the line: A$65m
Coupon type: fixed
Coupon rate: 3.5%
Issue/re-offer price: 99.817%
Issue yield: 3.521%
Margin to swap: 55bps/s-q
Margin to ACGB: 60.4bps/May 2028
Maturity date: 15 February 2028
Source: KangaNews