New issues for the period 21 March – 27 March 2018 including: ADB, BOQ, Heritage, IADB, IAG, KBN, Latitude, La Trobe, Macquarie, NAB, NTTC, NWB, Pepper, Rentenbank, SEK, VPN, Volkswagen
Asian Development Bank (ADB)
ADB priced an increase to its 2028 kangaroo bond on 22 March 2018.
Volume: A$100m
Total outstanding in the line: A$700m
Coupon type: fixed
Coupon rate: 3.3%
Issue/re-offer price: 101.359%
Issue yield: 3.145%
Margin to swap: 41bps/s-q
Margin to ACGB: 47.25bps/May 2028
Maturity date: 8 August 2028
Bank of Queensland (BOQ)
BOQ priced an increase to its 2029 domestic floating rate note on 21 March 2018.
Volume: A$50m
Total outstanding in the line: A$600m
Coupon type: FRN
Coupon rate: 3m BBSW +115bps
Issue/re-offer price: 101.017%
Margin to swap: 62bps/3m BBSW
Maturity date: 29 April 2029
Heritage Bank (Heritage)
Heritage issued a new, A$200m three year domestic bond on 20 March 2018.
Volume: A$200m
Total outstanding in the line: A$200m
Coupon type: FRN
Coupon rate: 3m BBSW +123bps
Issue/re-offer price: par
Margin to swap: 123bps/3m BBSW
Maturity date: 29 March 2021
Insurance Australia Group (IAG)
IAG issued a new, A$350m domestic Tier 2 bond on 23 March 2018.
Volume: A$350m
Total outstanding in the line: A$350m
Coupon type: FRN
Coupon rate: 3m BBSW +210bps
Issue/re-offer price: par
Margin to swap: 210bps/3m BBSW
Maturity date: 15 June 2044
Inter-American Development Bank (IADB)
IADB priced an increase to its 2028 kangaroo bond on 20 March 2018.
Volume: A$200m
Total outstanding in the line: A$540m
Coupon type: fixed
Coupon rate: 3.1%
Issue/re-offer price: 99.575%
Issue yield: 3.15%
Margin to swap: 41bps/s-q
Margin to ACGB: 47.75bps/May 2028
Maturity date: 22 February 2028
Kommunalbanken Norway (KBN)
KBN priced an increase to its 2028 kangaroo bond on 23 March 2018.
Volume: A$100m
Total outstanding in the line: A$505m
Coupon type: fixed
Coupon rate: 3.4%
Issue/re-offer price: 101.26% (plus 0.601% accrued)
Issue yield: 3.255%
Margin to swap: 52bps/s-q
Margin to ACGB: 60.5bps/May 2028
Maturity date: 24 July 2028
Latitude Finance Australia (Latitude)
Latitude issued a new, A$500m asset backed securities transaction, the Latitude Australia Credit Card Loan Note Trust Series 2018-1, on 22 March 2018.
| Tranche | Tranche volume | Tranche rating (S&P/Fitch) | Weighted average life | Margin to swap | Initial credit support |
| A1 | A$353.45m
| AAA/AAA | 5 years | 110bps/1m BBSW
| 32.5% |
| A2 | A$52.325m
| AAA/NR | 5 years
| 145bps/1m BBSW
| 22.5% |
| B | A$28.8m
| AA/NR | 5 years
| 195bps/1m BBSW
| 17% |
| C | A$26.175m
| A/NR | 5 years | 225bps/1m BBSW
| 12% |
| D | A$20.93m
| BBB/NR | 5 years
| 310bps/1m BBSW
| 8% |
| E | A$18.32m
| BB/NR | 5 years
| 425bps/1m BBSW
| 4.5% |
Source: KangaNews
La Trobe Financial (La Trobe)
La Trobe launched its first nonconforming residential mortgage backed securities transaction for 2018, the La Trobe Financial Capital Markets Trust 2018-1 (LFCMT 2018-1), on 26 March 2018. The transaction volume is A$500m with the potential to upsize to a maximum of A$750m.
The LFCMT 2018-1 indicative structure and price guidance is as follows:
| Tranche | Indicative volume | Expected ratings | Credit enhancement | Weighted average life | Indicative price guidance (bps/1m BBSW) |
| A1S | A$100m | AAA/Aaa | 30% | 0.34 years | 70 area |
| A1L | A$250m
| AAA/Aaa | 30% | 2.7 years | 125 area |
| A2 | A$89m
| AAA/Aaa | 12.2% | 2.7 years | 165 area |
| B | A$20m
| AA/NR | 8.2% | 3.7 years | 200 area |
| C | A$15.5m
| A/NR | 5.1% | 3.7 years
| 305 area |
| D | A$11m
| BBB/NR | 2.9% | 3.7 years
| 405 area |
| E | A$6.5m
| BB/NR | 1.6% | 3.7 years
| 605 area |
| F | A$4.5m
| B/NR | 0.7% | 2.9 years | 695 area |
| Equity | A$3.5m
| NR/NR | N/A | ND | ND |
Source: KangaNews
Macquarie Bank (Macquarie)
Macquarie issued a new, A$75m one year domestic floating rate note on 21 March 2018.
Volume: A$75m
Total outstanding in the line: A$75m
Coupon type: FRN
Coupon rate: 3m BBSW +48bps
Issue/re-offer price: par
Margin to swap: 48bps/3m BBSW
Maturity date: 26 March 2019
National Bank Australia (NAB)
NAB issued a new, A$80m 10 year domestic bond on 21 March 2018.
Volume: A$80m
Total outstanding in the line: A$80m
Coupon type: fixed
Coupon rate: 3.75%
Issue/re-offer price: 99.546%
Issue yield: 3.805%
Margin to swap: 105bps/s-q
Margin to ACGB: 111.5bps/May 20
Maturity date: 27 March 2028
Northern Territory Treasury Corporation (NTTC)
NTTC priced an increase to its 2033 syndicated line on 22 March 2018.
Volume: A$55m
Total outstanding in the line: A$205m
Coupon type: fixed
Coupon rate: 3.75%
Issue/re-offer price: 101.236% (plus 1.638% accrued)
Issue yield: 3.6425%
Margin to ACGB: 75bps/April 2033
Maturity date: 21 April 2033
NWB Bank (NWB)
NWB priced an increase to its 2028 kangaroo bond on 20 March 2018.
Volume: A$100m
Total outstanding in the line: A$465m
Coupon type: fixed
Coupon rate: 3.45%
Issue/re-offer price: 101.324%
Issue yield: 3.297%
Margin to swap: 54bps/s-q
Margin to ACGB: 61bps/May 2028
Maturity date: 17 July 2028
NWB priced an increase to its 2028 kangaroo bond on 23 March 2018.
Volume: A$100m
Total outstanding in the line: A$565m
Coupon type: fixed
Coupon rate: 3.45%
Issue/re-offer price: 101.639%
Issue yield: 3.261%
Margin to swap: 53bps/s-q
Margin to ACGB: 62bps/May 2028
Maturity date: 17 July 2028
Pepper Group (Pepper)
Pepper issued a new, A$1bn residential mortgage backed transaction, the Pepper Residential Securities Trust No. 20, on 21 March 2018.
| Tranche | Tranche volume | Tranche rating (S&P/Fitch) | Weighted average life | Margin to swap | Initial credit support |
| A1-S | A$205m | AAA/Aaa | 0.4 years | 65 bps/1m BBSW | 30% |
| A2-u1 | US$150m | A-1+/P-1 | 1 years | 50 bps/1m US Libor
| 30% |
| A1-a | A$300m
| AAA/Aaa | 2.7 years | 120 bps/1m BBSW
| 30% |
| A2 | A$130m
| AAA/Aaa | 2.7 years
| 155 bps/1m BBSW
| 17% |
| B | A$85m
| AA/NR | 3.8 years | 190 bps/1m BBSW
| 8.5% |
| C | A$30m
| A/NR | 3.8 years
| ND | 5.5% |
| D | A$20m
| BBB/NR | 3.8 years
| ND | 3.5% |
| E | A$15m
| BB/NR | 3.6 years | ND
| 2% |
| F | A$10m
| B/NR | 2.6 years | ND
| 1% |
| G | A$10m
| NR/NR | 5 years | ND
| N/A |
Source: KangaNews
Rentenbank
Rentenbank priced an increase to its 2028 kangaroo bond on 19 March 2018.
Volume: A$125m
Total outstanding in the line: A$750m
Coupon type: fixed
Coupon rate: 3.25%
Issue/re-offer price: 100.533% (plus 1.473% accrued)
Issue yield: 3.1875%
Margin to swap: 42bps/s-q
Margin to ACGB: 49bps/May 2028
Maturity date: 12 April 2028
Swedish Export Credit Corporation (SEK)
SEK issued a new, A$50m 10.5 year kangaroo bond on 22 March 2018.
Volume: A$50m
Total outstanding in the line: A$50m
Coupon type: fixed
Coupon rate: 3.25%
Issue/re-offer price: 99.603%
Issue yield: 3.295%
Margin to swap: 54bps/s-q
Margin to ACGB: 62.25bps/May 2028
Maturity date: 29 September 2028
Victoria Power Networks (VPN)
VPN issued a new, A$225m 10 year domestic bond on 23 March 2018.
Volume: A$225m
Total outstanding in the line: A$225m
Coupon type: fixed
Coupon rate: 4%
Issue/re-offer price: 99.511%
Issue yield: 4.06%
Margin to swap: 133bps/s-q
Maturity date: 29 March 2028
Volkswagen Financial Services (Volkswagen)
Volkswagen started marketing its new Australian dollar denominated asset backed securities transaction, the Driver Australia Five Trust, on 27 March 2018.
The Driver Australia Five Trust indicative price guidance and structure is as follows:
| Tranche | Expected rating | Weighted average life | Indicative price guidance (bps/1m BBSW) |
| A | AAA/AAA | 1.78 years | 95 area |
| B | A+/AA- | 2.82 years | 150 area |
Source: KangaNews