New issues for the period 30 May – 5 June 2018 including: ADB, Deutsche Bahn, Firstmac
African Development Bank (AfDB)
AfDB priced an increase to its 2027 kangaroo bond on 30 May 2018.
Volume: A$30m
Total outstanding in the line: A$140m
Coupon type: fixed
Coupon rate: 3.345%
Issue/re-offer price: 102.587% (plus 0.645% accrued)
Issue yield: 3.024%
Margin to swap: 37bps/s-q
Margin to ACGB: 45bps/April 2027
Maturity date: 27 September 2027
Deutsche Bahn Finance (Deutsche Bahn)
Deutsche Bahn issued a new, A$206m 10 year kangaroo bond on 29 May 2018.
Volume: A$206m
Total outstanding in this line: A$206m
Coupon type: fixed
Coupon rate: 3.494%
Issue/re-offer price: par
Issue yield: 3.494%
Margin to swap: 72bps/s-q
Margin to ACGB: 77.9bps/May 2028
Maturity date: 13 June 2028
Firstmac
Firstmac issued a new, A$1bn residential mortgage backed securities transaction, Firstmac Mortgage Funding Trust No. 4 Series 2-2018, on 4 June 2018.
| Tranche | Indicative volume | Expected ratings (S&P/Fitch) | Credit enhancement | Weighted average life | Indicative price guidance |
| A1 | A$850m | AAA/AAA | 15% | 3.2 years | Preplaced |
| A2 | A$70m | AAA/AAA | 8% | 4.2 years | 160 area |
| AB | A$56m | AAA/NR | 2.4% | 5.2 years | 175-180 area |
| B | A$19.5m | AA-/NR | 0.45% | 5.2 years | 190 area |
| C | A$3.4m | A/NR | 0.11% | 5.2 years | 290 area |
| D | A$1.1m | NR/NR | N/A | 7 years | ND |
Source: KangaNews