New issues for the period 11 April – 17 April 2018 including: ACT, BOC, Caltex, EFIC, Quebec, Suncorp, Volkswagen, WATC, Westpac
Australian Capital Territory (ACT)
ACT issued a new, A$550m 10 year syndicated transaction on 10 April 2018.
Volume: A$550m
Total outstanding in the line: A$550m
Coupon type: fixed
Coupon rate: 3%
Issue/re-offer price: 98.006%
Issue yield: 3.235%
Margin to ACGB: 54.25bps/May 2028
Margin to EFP: 53bps
Maturity date: 18 April 2028
Bank of China Sydney Branch (BOC)
BOC issued a new, A$800m three year domestic floating rate note on 10 April 2018.
Volume: A$800m
Total outstanding in this line: A$800m
Coupon type: FRN
Coupon rate: 3m BBSW +103bps
Issue/re-offer price: par
Margin to swap: 103bps/3m BBSW
Maturity date: 17 April 2021
Caltex Australia (Caltex)
Caltex issued a new, A$300m seven year domestic bond on 11 April 2018.
Volume: A$300m
Total outstanding in this line: A$300m
Coupon type: fixed
Coupon rate: 4%
Issue/re-offer price: 99.924%
Issue yield: 4.0125%
Margin to swap: 142bps/s-q
Maturity date: 17 April 2025
Export Finance and Insurance Corporation (EFIC)
EFIC issued a new, A$130m 10.5 year syndicated transaction on 12 April 2018.
Volume: A$130m
Total outstanding in the line: A$130m
Coupon type: fixed
Coupon rate: 3%
Issue/re-offer price: 98.783% (plus 1.03% accrued)
Issue yield: 3.135%
Margin to EFP: 45bps
Margin to ACGB: 44.75bps/November 2028
Maturity date: 15 December 2028
People’s Choice Credit Union (People’s Choice)
People’s Choice launched a new, A$500m residential mortgage backed securities transaction, Light Trust 2018-1, on 10 April 2018.
| Tranche | Tranche volume | Tranche rating (S&P/Fitch) | Weighted average life | Margin to swap | Initial credit support |
| A1 | A$460m | AAA/AAA | 3 years | 115bps/1m BBSW | 8% |
| A2 | A$10.5m | AAA/AAA | 5.4 years | 135bps/1m BBSW | 5.9% |
| AB | A$16m
| AAA/NR | 5.4 years | 165bps/1m BBSW
| 2.7% |
| B | A$8m
| AA/NR | 5.4 years | 200bps/1m BBSW
| 1.1% |
| C | A$4.5m
| A+/NR | 5.4 years
| 290bps/1m BBSW
| 0.2% |
| D | A$1m
| NR/NR | 5.4 years
| 590bps/1m BBSW
| n/a |
Source: KangaNews
Province of Quebec (Quebec)
Quebec issued a new, A$65m 10.5 year kangaroo bond on 11 April 2018.
Volume: A$65m
Total outstanding in the line: A$65m
Coupon type: fixed
Coupon rate: 3.25%
Issue/re-offer price: 99.779%
Issue yield: 3.275%
Margin to swap: 50bps/s-q
Margin to ACGB: 58.25bps/November 2028
Maturity date: 18 October 2028
Suncorp-Metway (Suncorp)
Suncorp launched its residential mortgage backed securities transaction, Apollo Series 2018-1, on 16 April 2018. The deal has an indicative total volume of A$750m and is expected to price on or around 19 April 2018.
Apollo 2018-1 indicative price guidance and structure:
| Tranche | Indicative volume | Tranche rating | Weighted average life | Indicative price guidance (bps/1m BBSW) |
| A1 | A$690m | AAA/AAA | 2.9 years | 105 area |
| A2 | A$27.75m
| AAA/AAA | 5.3 years | 115-120 area |
| AB | A$5.25m | AAA/AAA | 5.3 years | 150-155 area |
| B | A$11.25m | AA/NR | 5.3 years | 170-180 area |
| C | A$7.5m | A/NR | 5.3 years | 250-270 area |
| D | A$3.375m | BBB/NR | 5.3 years | 340-360 area |
| E | A$4.875m | NR/NR | 5.3 years | 570-595 area |
Source: KangaNews
Volkswagen Financial Services Australia (Volkswagen)
Volkswagen issued a new, A$400m three year domestic bond on 10 April 2018.
Volume: A$400m
Total outstanding in the line: A$400m
Coupon type: fixed
Coupon rate: 3.25%
Issue/re-offer price: 99.851%
Issue yield: 3.3025%
Margin to swap: 107bps/s-q
Maturity date: 13 April 2021
Western Australian Treasury Corporation (WATC)
WATC issued a new, A$1.3bn 10 year syndicated transaction on 13 April 2018.
Volume: A$1.3bn
Total outstanding in the line: A$1.3bn
Coupon type: fixed
Coupon rate: 3.25%
Issue/re-offer price: 98.878% (plus 0.808%)
Issue yield: 3.38%
Margin to EFP: 64.5bps
Margin to ACGB: 65.5bps/May 28
Maturity date: 20 July 2028
Westpac Banking Corporation (WBC)
WBC priced an increase to its 2022 domestic floating rate note on 11 April 2018.
Volume: A$200m
Total outstanding in the line: A$2.15bn
Coupon type: FRN
Coupon rate: 3m BBSW +81bps
Issue/re-offer price: 99.795% (plus 0.553% accrued)
Margin to swap: 86bps/3m BBSW
Maturity date: 27 October 2022
WBC priced an increase to its 2022 domestic floating rate note on 12 April 2018.
Volume: A$225m
Total outstanding in the line: A$2.375bn
Coupon type: FRN
Coupon rate: 3m BBSW +81bps
Issue/re-offer price: 99.795% (plus 0.553% accrued)
Margin to swap: 86bps/3m BBSW
Maturity date: 27 October 2022
Source: KangaNews