News
In the wake of Endeavour Energy Group (Endeavour Energy)’s A$350 million (US$265.7 million) domestic debut, issuer and intermediaries say the deal ticked the boxes for an issuer with a careful focus on volume and price. The emphasis was also on achieving the support of a broad spectrum of investors.
KangaNews is proud to present the winners of the institutional and deal categories in the KangaNews Awards 2017. After an extensive voting and verification process, KangaNews can confidently say its results reflect a true market view on the outstanding performers of 2017 in the Australian and New Zealand debt markets.
In the wake of its second residential mortgage-backed securities (RMBS) transaction of 2017, Evan Dwyer, managing director at RedZed Lending Solutions (RedZed) in Melbourne, gives KangaNews an issuer update as book growth makes the company a more frequent visitor to the securitisation market.
The Australian Office of Financial Management (AOFM) disclosed on 29 November that its next auction of residential mortgage-backed securities (RMBS) holdings will take place on 14 December. The auction will be for five lines of RMBS notes and a Westpac Institutional Bank (Westpac) research note says the cash value of the paper on offer is A$444.1 million (US$336.9 million).
The prominence of the residential sector within Australia’s economy and financial markets makes the mortgage a fascinating prospect for sustainable investment evolution. At the Australian Securitisation Forum’s annual conference on 21 November, two market participants closely connected with the development of the local sustainable debt market discussed the prospects for investable green mortgages.
Telstra Corporation (Telstra) printed its first Reg S-only deal in November. The transaction is the tightest ever issued by an Australian corporate in the US dollar Reg S market, leads say, and garnered solid Japanese take up.
The Australian Office of Financial Management (AOFM) completed what was by some distance its most successful divestment auction for its residential mortgage-backed securities (RMBS) portfolio on 23 November. The divestment programme fizzled out in late 2015 on the back of unspectacular demand, but the AOFM says a revised approach and positive market conditions enabled it to return with a superior auction outcome.
Australian green and social impact bond issuance has gained momentum throughout 2017 both domestically and offshore. On 16 November, Westpac Banking Corporation (Westpac) extended its green bond programme to the euro market, pricing a €500 million (US$591.6 million) transaction.
A trifecta of nonconforming residential mortgage-backed securities (RMBS) deals priced early in Q4 – from Bluestone Group (Bluestone), Pepper and Resimac – serve to illustrate the ongoing positive demand story for the Australian asset class.
Leads and issuer on Australia’s third-ever wholesale additional tier-one (AT1) deal and the first to write off rather than convert at point of nonviability (PoNV) – as printed by ME Bank on 16 November – say the transaction demonstrates the continued evolution of bank capital optimisation.
QBE priced a new additional tier-one (AT1) transaction on 10 November, printing US$400 million in a no-grow deal with a May 2025 first call date. In a first for the Australian market, the Reg S deal was issued in accordance with an issuer gender-equality framework. Paul Byrne, QBE’s Sydney-based group treasurer, estimates this approach may have doubled the volume of demand the transaction attracted.
In recent years, the London interbank offered rate (Libor) has faced increased scrutiny by market participants as well as regulatory authorities in the international financial markets. Leading US law firm Mayer Brown shares vital insights into how the future of Libor could affect Australian securitisers.