International Financing Review Asia November 25 2017 21COUNTRY REPORT
Australia 21 China 23 Hong Kong 30 India 34 Indonesia 36 Japan 37 Malaysia 39
Philippines 40 Singapore 41 South Korea 42 Taiwan 42 Thailand 43AUSTRALIA
DEBT CAPITAL MARKETS
› MACQUARIE TAKES THE CALLMACQUARIE GROUP (A3/BBB/A–) raised an
impressive US$2.5bn from a three-part
offering of 144A/Reg S senior unsecured
notes last Monday, showing that investors
remain fully engaged in buying bonds
heading into the year end.
The respective US$1.1bn 3.189% six-year
non-call fives and the US$750m 3.763% 11-
year non-call 10s priced 110bp and 140bp
wide of Treasuries, 2bp tighter than 130bp
area and 160bp area initial price thoughts.
The US$650m six-year non-call five floating-
rate notes pay a coupon of three-month
Libor plus 102bp. Bank of America Merrill Lynch,
Citigroup, HSBC, JP Morgan and Macquarie
were joint bookrunners on the trade, which
attracted a combined order book of US$5.1bn,
with US$1.3bn and US$1.7bn of demand for
the fixed-rate six-year non-call fives and 11-
year non-call 10s and US$2.1bn for the floater.
Macquarie paid respective new-issue
concessions for the six-year and 11-year
notes of 4bp and 5bp versus its own 2.85%
January 2021s and 3.9% January 2026s.
The deal is the first for an Australian
issuer in senior callable format. Although
Australia has not yet implemented a total
loss-absorbing capacity (TLAC) regime or, in
the EU jurisdiction, minimum own funds
and eligible liabilities (MREL) requirements,
Macquarie Group does have conservative
internal liquidity rules under which bonds
are no longer treated as term debt when
maturities fall below 12 months.› NAB TAPS UK MARKET FOR £250MNATIONAL AUSTRALIA BANK (Aa3/AA–/AA–) issued
a capped £250m (US$328m) 1.375% senior
unsecured 4.8-year (June 27 2022) Eurobond
last Tuesday, at the tight end of Gilts plus
80bp–85bp initial price thoughts.
Lloyds, Nomura, RBC Capital Markets and
NAB’s own syndications team were joint
bookrunners for the fifth sterling Eurobond
from an Australian major bank this year.
NAB previously was in the UK market on
July 20 to sell £500m of 0.875% three-year Reg
S senior unsecured bonds at Gilts plus 75bp,
11 days before Westpac printed £500m of
0.875% five-year notes 67bp wide of Gilts.On January 5, Commonwealth Bank of
Australia issued £350m of 1.125% short five-
year (December 22 2021) bonds at Gilts plus
67bp, while, on January 25, Westpac priced
£250m of 2.125% eight-year paper at 95bp
wide of Gilts.› TRIO PRINTS ONE-YEAR FLOATERSThe Sydney branches of three international
banks last week printed one-year floating-
rate notes to raise a combined A$800m
(US$608m). On Tuesday, UNITED OVERSEAS BANK
(Aa1/AA–/AA–) priced A$400m of floaters
at three-month BBSW plus 26bp with UOB,
ANZ and Westpac as arrangers.
Two days later, OVERSEA-CHINESE BANKING
CORP (Aa1/AA–/AA–) also paid a 26bp margin
for its A$125m issue via sole lead Westpac.
Earlier on Thursday, lower-rated ROYAL
BANK OF CANADA (A1/AA–/AA) sold A$275m of
self-led notes in line with price guidance in
the three-month BBSW plus 30bp area.
The last 18 months or so have seen a run
of Australian bank one-year FRN offerings,
largely due to the contraction in the US
commercial paper market.› SSA TRIO TAPS LONG KANGAROOSThree Triple A SSAs tapped their existing
Kangaroo bonds last week to raise a
combined A$250m.
On Tuesday, ASIAN DEVELOPMENT BANK added
A$75m to its 3.80% March 23 2032s via sole
lead Nomura. The reopening, which raised
the issue size to A$185m, priced at 106.282 to
yield 3.2475%, equivalent to asset swaps plus
45bp and 63.5bp over the April 2029 ACGB.
The following day, INTERNATIONAL FINANCE
CORP tapped its 3.20% October 18 2027s
for A$50m, lifting the oustanding to
A$450m. Bank of America Merrill Lynch led
the tap, which priced at 101.575 for a yield
of 3.014%, 43bp wide of asset swaps and
54.9bp over the April 2027 ACGB.
On Thursday, RENTENBANK tapped its 3.25%
April 2028s for A$125m, lifting the size of
the line to A$425m. Mizuho and JP Morgan
arranged the reopening, priced at 101.452
to yield 3.085%, 48bp over asset swaps and
54bp wide of the May 2028 ACGB.STRUCTURED FINANCE
› P&N BANK RMBS RAISES A$350MP&N BANK issued A$350m of prime RMBS
through Pinnacle Series Trust 2017-T1, withANZ as arranger and sole lead manager.
The A$315m Class A1 and the A$17.5m
Class A2 notes, both with 3.1-year
weighted-average lives and credit support
of 10% and 5%, priced 115bp and 125bp
over one-month BBSW, respectively.
The A$7m Class ABs, A$6.125m Class Bs,
A$3.325m Class Cs and A$1.05m Class Ds,
all with 5.8-year WALs priced 165bp, 215bp,
300bp and 600bp wide of one-month BBSW,
respectively.
The A1, A2 and AB notes have Aaa
ratings from Moody’s. The Bs and Cs are
rated AA and A+.› THINK TANK MARKETS CMBSSpecialist non-bank lender THINK TANK GROUP
has mandated CBA and Westpac to market a
potential offering of Australian dollar SME
commercial-mortgage-backed securities.
Think Tank sold A$280m of SME CMBS
in October last year, through ConQuest
2016-2.
The A$182m Class A1s and A$23.8m
Class A2s, both with 1.9-year weighted
average lives and credit support of 35% and
26.5%, priced 180bp and 250bp wide of one-
month BBSW, respectively.
The A$16.24m Class Bs, the A$19.6m
Class Cs, the A$19.6m Class Ds, the
A$4.76mm Class Es, the A$4.76m
Class Fs, the A$4.48m Class Gs and the
A$4.76m Class Hs priced 325bp, 420bp,
510bp, 700bp, 725bp, 955bp and 1200bp,
respectively, over one-month BBSW.
Think Tank sold its previous CMBS in
July 2014, a A$113.6m issue through Think
Tank Series 2014-1 Trust.› LIBERTY REVS UP AUTO ABSLIBERTY FINANCIAL has released price
indications for two senior tranches of a
proposed no-grow A$300m offering of auto
loans asset-backed securities.
Guidance for the A$34m Class A1 and
A$161m Class A2 notes, both with 35% credit
support and respective weighted-average lives
of 0.2 and 1.9 years, is one-month BBSW plus
65bp area and 105bp area.
Price talk is not out for the A$38.7m
Class Bs, A$22.8m Class Cs, A$25.6m Class
Ds, A$16.8m Class Es and A$8.1m Class Fs,
all with 2.5-year WALs and credit support
of 22.1%, 14.5%, 9.3%, 3.7% and 1.0%,
respectively.
The structure is completed with A$3m
of unrated retained notes, with a 4.0-year
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