On Wednesday, German government-
guaranteed agency KFW, the world’s
biggest issuer of Kangaroos, tapped its
5.5% February 9 2022 line for A$350m to
increase the issue size to A$2.25bn.
Citigroup and JP Morgan were lead
managers on the reopening, which priced
at 111.632 for a yield of 2.625%, 31bp over
asset swaps and 29.25bp wide of the July
2022 ACGB.
The following day, EXPORT DEVELOPMENT
CANADA raised A$550m from new five-year
notes via arrangers ANZ, Citigroup, and TD
Securities.
The 2.7% October 24 2022s priced at
99.768 for a yield of 2.75%, 32bp and 43bp
wide of asset swaps and the July 2022
ACGB, respectively.
Also on Thursday, ASIAN DEVELOPMENT
BANK added A$150m to its 3.4% September
2027 line, lifting the issue size to
A$800m.
Deutsche Bank, Nomura and RBC Capital
Markets led the increase, which priced at
100.877 for a yield of 3.295%, 45bp over
asset swaps and 53.5bp wide of the April
2027 ACGB.
› ADCB THREE-PIECE RAISES A$400M
ABU DHABI COMMERCIAL BANK, rated A/A+ (S&P/
Fitch), broke new ground last Friday with
a Middle East issuer’s first multi-tranche
Kangaroo bond sale to raise A$400m.
The lender priced A$150m five-year
floating-rate notes 138bp wide of three-
month BBSW, inside 140bp area talk, and
A$100m 3.75% October 25 2022 bonds
at 99.740 to yield 3.8075%, equivalent to
assets swaps plus 138bp.
The three-tranche trade, via joint lead
managers ANZ and Nomura, included a
rare 10-year piece from an overseas bank.
The A$150m 4.5% October 25 2027s priced
at 99.602 for a yield of 4.55%, 5bp below
175bp area guidance at asset swaps plus
170bp.
STRUCTURED FINANCE
› CITIGROUP RMBS NETS A$1.631BN
CITIGROUP issued self-led A$1.631bn prime
Australian residential mortgage-backed
securities last Thursday via Securitised
Australian Mortgage Trust (SAMT) 2017-1.
The A$1.5bn Class A notes, rated Aaa/
AAA (Moody’s/S&P), with a 2.6-year
weighted-average life, priced 97bp wide
of one-month BBSW. Pricing was not
disclosed for the A$49m Class ABs, rated
AAA (S&P), or the unrated A$82m Class Bs,
both with 7.8-year WALs.
Citigroup sold A$1.25bn prime RMBS in
September 2015 via SAMT 2015-1, pricing
the Class A notes, with a 2.7-year WAL, at
one-month BBSW plus 98bp.
In November 2014, Citigroup printed its
first RMBS since April 2011, with a A$1.13bn
prime issue through SAMT 2014-1.› HERITAGE RETURNS WITH A$750M RMBSHERITAGE BANK priced a A$750m offering of
prime RMBS last Wednesday through HBS
Trust 2017-1.
NAB was arranger on transaction, which
had a minimum issue size of A$500m, and
joint lead manager with ANZ and Westpac.
The A$690m Class A1 notes priced
at one-month BBSW plus 107bp, inside
110bp area guidance, while the A$22.5m
Class A2 notes priced 120bp wide of one-
month BBSW, below final 125bp–130bp
area guidance and initial 130bp–135bp
area talk. Both notes have 3.3-year
weighted-average lives.
The A$19.125m Class ABs, the
A$10.875m Class Bs, the A$6m Class Cs and
A$1.5m Class Ds, all with 6.5-year WALs,
priced 160bp, 200bp and 285bp and 590bp
over one-month BBSW, respectively.
Pricing compares with final 160bp–165bp
area, 205bp–210bp area, 290bp–295bp area
and 590bp area guidance.
The A1s, A2s and ABs are rated AAA/AAA
(S&P/Fitch). S&P alone sees the Bs as AA and
the Cs as A+.
Heritage Bank sold its previous RMBS in
March 2014 with a A$400m securitisation
of first-ranking mortgages through HBS
Trust 2014-1.
Australia’s largest mutual bank
previously issued RMBS in July 2011,
the same year it changed its name from
Heritage Building Society.› RESIMAC EYES SIXTH NON-CON RMBSNon-bank lender RESIMAC has released initial
price talk for its sixth offering of non-
conforming RMBS, an indicative A$500m
issue through Resimac Bastille Trust Series
2017-1.
NAB is arranger and joint lead manager
with Deutsche Bank, CBA and Macquarie.
Respective price guidance for the
A$350m Class A1 and the A$75m Class A2
notes, both with 2.0-year weighted-average
lives, is one-month BBSW plus 130bp area
and 190bp–195bp area.
For the A$39m Class Bs, the A$9.5m Class
Cs, the A$9.5m Class Ds and the A$6m
Class Es, all with 3.4 year WALs, price talk
is one-month BBSW plus low-mid 200s area,
low 300s area, low 400s area, and low 600s
area, respectively.
For the A$5.5m Class F notes, guidance is
low 700s area.The Class A notes have ratings of Aaa
from Moody’s and AAA from Fitch, while
Moody’s alone sees the Bs to Fs as Aa2, A2,
Baa2, Ba2 and B2, respectively.
Resimac sold its previous non-
conforming RMBS on August 5 last year
through the A$750m Resimac Bastille Trust
Series 2016-1NC.
Its last prime RMBS was printed in late
July 2017 in a A$750m trade through
Resimac Premier Trust 2017–2.› BLUESTONE MARKETS NON-CON RMBSBLUESTONE GROUP has mandated Macquarie and
CBA to arrange investor meetings this week
ahead of a potential issue of Australian
dollar non-conforming RMBS under the
Sapphire programme.
The specialist residential mortgage
lender last issued non-conforming RMBS
on May 17 this year with a A$250m sale
through Sapphire XVI 2017-1.
Last November, Bluestone priced
a A$200m non-conforming RMBS via
Sapphire XV 2016-2.SYNDICATED LOANS
› WOODSIDE SEEKS TWO-YEAR EXTENSIONWOODSIDE PETROLEUM is seeking an US$800m
two-year extension of a US$1.2bn loan
signed in July 2015.
Australia’s largest independent oil-and-
gas producer is reducing the size of the
loan, structured as a revolving credit and
split equally into three-year and five-year
tranches, to fit its liquidity needs and
pushing out the maturity dates from 2018
and 2020 to 2020 and 2022, respectively.
Mandated lead arrangers and
bookrunners Mitsubishi UFJ Financial Group,
Mizuho Bank and Westpac Banking Corp have
invited the existing group of lenders to
recommit to the extension.
The margin remains at 90bp over Libor
for the three-year portion and 115bp
over Libor for the five-year portion with a
commitment fee of 40% of the applicable
margin. The fee is 10bp per year.
Bank presentations kicked off in Sydney
last Thursday before hitting Singapore the
next day. Responses are due in the first
week of November.
Woodside and partners Chevron
Corp, Kuwait Foreign Exploration and
Kyushu Electric Power, said this week
that their Wheatstone LNG project had
started production. The project’s two gas
liquefaction units will supply 8.9m tonnes
of LNG a year to customers in Asia. The
second unit is expected to start production
in six to eight months.