New issues for the period 18 July – 24 July 2018 including: AOFM, IADB, IFC, Pepper, RBC Sydney, TD Bank, UOB Sydney, Zurich
Australian Office of Financial Management (AOFM)
AOFM issued a new, A$3.6bn May 2041 syndicated bond on 17 July 2018.
Volume: A$3.6bn
Total outstanding in the line: A$3.6bn
Coupon type: fixed
Coupon rate: 2.75%
Issue/re-offer price: 94.46% (plus 0.501% accrued)
Issue yield: 3.09%
Margin to EFP: 42bps
Maturity date: 21 May 2041
Inter-American Development Bank (IADB)
IADB priced an increase to its May 2023 kangaroo bond on 17 July 2018.
Volume: A$150m
Total outstanding in the line: A$1bn
Coupon type: fixed
Coupon rate: 4%
Issue/re-offer price: 105.978%
Issue yield: 2.6675%
Margin to swap: 35bps/s-q
Margin to ACGB: 39.25bps/April 2023
Maturity date: 22 May 2023
International Finance Corporation (IFC)
IFC priced its A$150m short 11 year kangaroo bond on 18 July 2018.
Volume: A$150m
Total outstanding in the line: A$150m
Coupon type: fixed
Coupon rate: 3.15%
Issue/re-offer price: 99.632% (plus 0.258% accrued)
Issue yield: 3.19%
Margin to swap: 41bps/s-q
Margin to ACGB: 54.25bps/April 2029
Maturity date: 26 June 2029
Pepper Group (Pepper)
Pepper launched its nonconforming and prime residential mortgage backed securities transaction, PRS 21 on 23 July 2018. The deal has an indicative total volume of $A700m equivalent, including the US dollar denominated Class A1-u notes. Pricing is expected on or before 27 July.
PRS 21 indicative price guidance and structure:
| Tranche | Indicative volume | Expected ratings (S&P/Moody's) | Weighted average life | Indicative price guidance |
|---|
| A1-s | A$105m | AAA/AAA
| 0.6 years | 85 area |
| A1-u | US$175m | AAA/AAA
| 1.8 years | 90-95 area/1m US Libor |
| A1-a | A$147m | AAA/AAA
| 2.8 years | 140 area |
| A2 | A$99m | AAA/AAA
| 3.8 years | 175-180 area |
| B | A$51m | AA/NR
| 3.8 years
| low 200s area |
| C | A$21.5m | A/NR
| 3.8 years
| 310bps/1m BBSW |
| D | A$15m | BBB/NR | 3.8 years
| 410bps/1m BBSW |
| E | A$9.5m | BB/NR | 3.6 years
| 610bps/1m BBSW |
| F | A$7m | B/NR | 2.6 years | 720bps/1m BBSW
|
| G | A$7m | NR/NR | 5 years | ND |
Source: KangaNews
Royal Bank of Canada Sydney Branch (RBC Sydney)
RBC Sydney netted a, A$1.3bn in three year domestic floating rate bond on 18 July 2018.
Volume: A$1.3bn
Total outstanding in the line: A$1.3bn
Coupon type: FRN
Coupon rate: 3m BBSW +75bps
Issue/re-offer price: par
Margin to swap: 75bps/3m BBSW
Maturity date: 26 July 2021
Toronto Dominion Bank (TD Bank)
TD Bank priced its A$400m one year kangaroo floating rate bond on 23 July 2018.
Volume: A$400m
Total outstanding in the line: A$400m
Coupon type: FRN
Coupon rate: 3m BBSW +46bps
Issue/re-offer price: par
Margin to swap: 46bps/3m BBSW
Maturity date: 26 July 2019
United Overseas Bank Sydney Branch (UOB Sydney)
UOB Sydney priced its A$600m 3.5 year domestic floating rate bond on 17 July 2018.
Volume: A$600m
Total outstanding in the line: A$600m
Coupon type: FRN
Coupon rate: 3m BBSW +81bps
Issue/re-offer price: par
Margin to swap: 81bps/3m BBSW
Maturity date: 24 January 2022
Zurich Finance Australia
Zurich Australia issued a new, A$250m 20 year domestic deal on 18 July 2018.
Volume: A$250m
Total outstanding in this line: A$250m
Coupon type: fixed
Coupon rate: 4.5%
Issue/re-offer price: par
Issue yield: 4.5%
Margin to swap: ND
Maturity date: 26 July 2038
Source: KangaNews