guidance at asset swaps plus 168bp.
VW Australia is a regular issuer with
seven outstanding Australian dollar MTNs,
including the A$500m 3.1% April 2023s
printed in April this year.
› MERCEDES BACK WITH EMTN
MERCEDES-BENZ AUSTRALIA/PACIFIC (A2/A/A–)
followed in VW Australia’s slipstream
with a A$150m three-year EMTN sale last
Thursday via joint lead managers CBA and
TDSecurities.
The 1.625% August 30 2022s priced at
99.968 for a yield of 1.636%, 90bp wide of
mid-swaps.
The regular issuer previously raised
A$150m from a 2.5% three-year Reg S bond
in March having sold A$100m, A$125m and
A$100m three-year bonds in January, March
and August 2018, respectively.
› MUFG SYDNEY RAISES A$700M
MUFG BANK, SYDNEY BRANCH, rated A1/A
(Moody’s/S&P), issued a A$700m dual-
tranche three-year transferrable certificate
of deposit last Wednesday through lead
managers ANZ, MUFG, Morgan Stanley, NAB
and Westpac.
A A$500m floating rate note priced inside
72bp area guidance at three-month BBSW
plus 68bp.
A A$200m 1.35% fixed-rate note priced
at 99.854 for a yield of 1.40%, 68bp wide of
asset swaps.
MUFG Bank, Sydney branch previously
accessed the market in March with a
bumper A$1.25bn three-year floating-rate
TCB, priced at 87bp over three-month
BBSW.
› KDB PRINTS RECORD A$700M
KOREA DEVELOPMENT BANK, rated Aa2/AA
(Moody’s/S&P), raised A$700m from last
Tuesday’s dual-tranche five-year Kangaroo
sale, the largest such issuance by a Korean
credit.
A A$200m 1.5% fixed-rate note priced at
99.653 to yield 1.5725%, 78bp wide of asset
swaps, while a A$500m floating-rate priced
at three-month BBSW plus 78bp.
KDB said pricing was more than 10bp
inside its US dollar curve, and the tightest
spread for any five-year Kangaroo since
the global financial crisis, excluding
supranational and agency issuers.
JP Morgan, MUFG, NAB, UBS and Westpac
were joint bookrunners.
› SSA TRIO RAISE A$250M
Three European SSAs tapped existing
Kangaroo lines over the last couple of
weeks with deals of A$50m or more to raise
a combined A$250m.
On August 16, German agricultural
agency RENTENBANK (Aaa/AAA/AAA) added
A$75m to its 4.75% May 6 2026 bond to
increase the size of the line to A$780m.
The reopening, via sole lead manager
Citigroup, priced at 122.926 to yield 1.1825%,
44bp over asset swaps and 42.75bp wide if
the April 2026 ACGB.
On August 21, NRW BANK, the guaranteed
development agency of Germany’s North
Rhine-Westphalia (Aa1/AA–/AAA), tapped its
1.6% July 31 2024s for A$100m, taking the
outstanding amount up to A$550m.
Deutsche Bank, JP Morgan and RBC Capital
Markets arranged the increase which priced
at 101.582 for a yield of 1.2675%, 50bp and
59.5bp over asset swaps and the April 2024
ACGB.
The following day railroad financier
EUROFIMA, rated Aa2/AA+ (Moody’s/S&P),
pushed its 3.35% May 21 2029 bond size up
to A$480m with a A$75m increase via sale
lead Nomura.
This priced at 115.794 for a re-offer yield
of 1.591%, 62bp and 66.1bp wide of asset
swaps and the April 2029 ACGB.STRUCTURED FINANCE
› RESIMAC PRIME RMBS NETS A$1BNNon-bank lender RESIMAC returned to the
RMBS market last Friday with an enlarged
A$1bn (US$680m) equivalent dual-currency
prime RMBS, RESIMAC PREMIER SERIES 2019-2, that
includes US dollar Class A1 and A3u notes.
NAB was arranger and joint lead manager
with Citigroup and Deutsche Bank for the
Australian dollar notes while Citigroup and
NAB arranged the US dollar tranches.
The US$245m Class A1 and US$70m Class
A3u notes, with 1.8 and 5.0-year weighted-
average lives, priced at one-month Libor
plus 95bp and 110bp.
The A$350m Class A2 and A$100m Class
A3a notes, with 2.9 and 5.0-year WALs,
priced 115bp and 138bp wide of one-month
BBSW.
The A$60m Class AB, A$15m Class B,
A$12.5m Class C, A$5.5m Class D and A$3m
Class E notes, all with 4.6-year WALs, priced
190bp, 220bp, 270bp, 380bp and 580bp
wide of one-month BBSW.
The A$1.935m Class G notes with a 4.2-
year WAL priced at one-month BBSW plus
750bp.
The transaction was completed by
A$2.065m Class G notes.
Credit support for the Class A notes
is 10%. For the AB to F notes respective
support is 4%, 2.5%, 1.25%, 0.7%, 0.4% and
0.21%.Resimac previously sold a A$750m
equivalent dual-currency prime RMBS
issue, Resimac Premier 2018-2, last
November.
The 2018-2 Class A2, AB, B, C, D, E and
F notes priced at one-month BBSW plus
122bp, 200bp, 235bp, 280bp, 375bp, 575bp
and 685bp.
The new A2 to C notes thus came 7bp,
10bp, 15bp and 10bp, tighter than last
November’s equivalent tranches, while the
new Class D, E and F notes came 5bp, 5bp
and 65bp wider.› COLUMBUS READIES NON-RESIDENT RMBSCOLUMBUS CAPITAL is readying the A$250m
VERMILION TRUST NO 1 BOND SERIES 2019-1 RMBS,
which entirely comprises residential
mortgage loans to non-residents of
Australia.
Credit Suisse, MUFG, Natixis Asia, Standard
Chartered Bank and Westpac were mandated
for the RMBS originated by the non-bank
lender under its Vermilion non-resident
borrower programme.
The offering is the first Australian 100%
non-resident RMBS transaction to be rated
by S&P.› LATITUDE TARGETS UK INVESTORSLATITUDE FINANCE AUSTRALIA has mandated Bank
of America Merrill Lynch as arranger and joint
lead manager with Deutsche Bank, NAB and
SocGen for investor meetings in Australia
and the UK for a potential Australian dollar
issue under Latitude Australia’s Credit Card
Master Trust programme.
Investor meetings are scheduled for
Sydney on August 26, London on August 28
and Melbourne on September 2 and 3.
Latitude Finance issued the first public
master-trust securitisation in Australia
in March 2017, a A$1bn credit card ABS,
Credit Card Loan Note Trust Series 2017-1.
Latitude returned in August 2017 for a
A$500m issue through Credit Card Loan
Note Trust Series 2017-2 before another
A$500m sale in March 2018 via Latitude
Australia Credit Card Loan Note Trust,
Series 2018-1.› MACQUARIE GOES FOR FUNDING-ONLYMACQUARIE SECURITISATION has mandated
Macquarie Bank, ANZ, CBA, NAB and Westpac
to market a potential funding-only
Australian dollar PUMA RMBS issue.
Macquarie Securitisation previously
issued A$1bn of prime RMBS in August
2017, PUMA Series 2017-1, and refinanced
A$244m Puma 2014-1 Class A-R and
A$182.26m Puma 2014-2 Class A-R RMBS
notes in January and June this year.