COUNTRY REPORT AUSTRALIAjoint lead manager with MUFG, NAB, RBC
Capital Markets and Westpac.
The A$375m Class A1-a and A$11.6m
Class A1-x notes, with respective
weighted-average lives of 1.5 and 0.7-
years, priced at one-month BBSW plus
118bp and 110bp.
The A$32.5m Class B, A$30m Class
C, A$20m Class D, A$15m Class E and
A$12.5m Class F notes, all with 2.2-year
WALs priced 225bp, 275bp, 350bp, 525bp
and 700bp wide of one-month BBSW,
respectively.
Pricing was not disclosed for the A$15m
Class G notes with a 3.0-year WAL.
Initial credit support for the Class A1-a
note is 25%. For the Class B to F notes
respective support is 18.5%, 12.5%, 8.5%,
5.5% and 3.0%.› ABSF TO PUBLISH PRINCIPLESThe Australian Office of Financial
Management is due to publish finalisedprinciples of the A$2bn AUSTRALIAN BUSINESS
SECURITISATION FUND by July 22, ahead of
roundtable discussions in Sydney on July 23
and in Melbourne on July 25.
Last November, the government
announced it would create the fund to help
provide finance to small and medium-sized
enterprises on more competitive terms.
The finalised principles will cover market
impact, transparency, good governance and
reputational risk.Top bookrunners of Australia syndicated loans
1/1/19 – 30/6/19
Amount
Name Deals US$(m) %
1 ANZ 18 3,719.9 13.5
2 MUFG 13 3,352.2 12.2
3 HSBC 10 2,845.8 10.3
4 NAB 11 2,472.4 9.0
5 CBA 11 2,134.2 7.7
6 Westpac 10 1,539.6 5.6
7 Mizuho 7 1,314.5 4.8
8 Bank of China 5 1,267.5 4.6
9 SMFG 6 1,205.3 4.4
10 BNP Paribas 5 1,057.3 3.8
Total 58 27,600.0
* Based on market of syndication and market total
Proportional credit
Source: Refinitiv data SDC Code: S7Top bookrunners of Australian equity and
convertible offerings
1/1/19 – 30/6/19
Amount
Name Issues US$(m) %
1 UBS 15 2,788.1 22.9
2 Citigroup 7 2,206.2 18.1
3 JP Morgan 12 1,572.8 12.9
4 Macquarie 10 1,458.7 12.0
5 Bell Financial 31 588.0 4.8
6 Deutsche 2 540.3 4.4
7 BAML 2 441.7 3.6
8 Goldman Sachs 2 337.5 2.8
9 Morgan Stanley 3 284.9 2.3
10 Morgans Financial 15 181.5 1.5
Total 300 12,183.4
*Market volume
“Standard Exclusion not applicable”
Proportional credit
Source: Refinitiv data SDC Code: AK1Metro Finance taps ABS scarcity demand
Structured Finance Diversification-hungry investors lap up rare auto securitisationConsumer lender METRO FINANCE achieved
good traction for its second public auto and
equipment prime ABS offering, METRO 2019-1,
which was upsized to A$400m (US$281m)
from an indicative A$300m while most
tranches priced inside initial guidance.
The transaction enjoyed some scarcity
value as just the second auto ABS of the year
in Australia following Macquarie Leasing’s
A$1.1765bn funding-only trade in March,
SMART ABS Series 2019-1 Trust, which,
unlike Metro, only sold Triple A rated senior
notes.
There has been one other non-RMBS
securitisation in 2019, FlexiGroup’s Flexi ABS
Trust 2019-1, which was backed by consumer
receivables.
“Investors are keen to diversify away from
mortgage-backed issues which dominate
the market,” said a banker close to the deal.
“This appetite was certainly reflected in the
mezzanine tranches which were not present
in the Macquarie auto ABS.”The order book reached US$800m from
15 investors, with seven first time investors in
Metro ABS and three from overseas.
Domestic accounts were allotted 82% and
offshore 18%, while real money investors
bought 90% and bank balance sheets 10%.
The subordinated tranches were
particularly well bid with the Class D and
Class E Notes 4.7 times and 4.8 times
subscribed, respectively.
The A$120m Class AS notes with a
0.7-year weighted-average life priced
last Wednesday at the wide end of final
one-month BBSW plus 85bp–90bp area
guidance, which was revised from initial 90bp
area price thoughts.
The A$202m Class AL notes with a 2.6-
year WAL priced inside 130bp area IPTs and
at the tight end of refined 125bp–130bp area
guidance.
The Metro 2019-1 A$30m Class B, A$14m
Class C, A$8m Class D, A$12m Class E and
A$4.4m Class F notes, all with 2.8-yearWALs, priced below initial 225bp area, 270bp
area, low 300bp area, mid 500bp area and
700bp area guidance at one month BBSW
plus 215bp, 260bp, 300bp, 540bp and
690bp, respectively.
The A$4.6m Class GA and A$5m Class GB
notes were pre-placed.
Credit support for the Class A notes is 19.5%.
For the Class B to GA notes respective support
is 12%, 8.5%, 6.5%, 3.5%, 2.4% and 1.25%.
NAB was arranger, having also brought the
A$300m Metro 2018-2 auto ABS to market
last November.
Metro Finance privately placed a A$288m
six-tranche prime commercial auto and
equipment ABS offering in June last year, the
Metro Finance 2018-1 Trust.
Metro Finance was established in 2011 as
a commercial auto and equipment lender.
It targets prime borrowers for small-ticket
auto and equipment assets in low volatility
industries.
JOHN WEAVERSTop lead managers of Australian dollar-
denominated domestic bonds, inc-Kangaroo bonds,
ex-self-funded transactions, ABS, MBS
1/1/19 – 30/6/19
Amount
Name Issues A$(m) %
1 Westpac 31 5,834.1 13.8
2 ANZ 31 4,978.0 11.7
3 CBA 24 4,527.9 10.7
4 NAB 26 4,229.1 10.0
5 Nomura 30 3,665.3 8.6
6 TD Sec 34 3,646.2 8.6
7 UBS 12 3,329.6 7.9
8 Deutsche 16 3,193.0 7.5
9 Mizuho 10 1,266.7 3.0
10 RBC Capital 14 1,256.8 3.0
Total 138 42,411.1
*Market volume and including Kangaroo bonds
Proportional credit
Source: Refinitiv data SDC Code: AJ6