22 International Financing Review Asia November 25 2017Deutsche Bank and NAB are arranging the
marketing effort.
Liberty Financial priced its eighth
offering of auto loans ABS in November
2015, a A$200m sale through Liberty Series
2015-1 Auto Trust.› REDZED PLANS PRE-XMAS RMBSREDZED LENDING SOLUTIONS has hired CBA and
NAB for a potential RMBS transaction under
the RedZed Trust Series RMBS Programme.
In April, RedZed raised A$300m from
non-conforming RMBS, under RedZed Trust
Series 2017-1.
The A$180m Class A1 and A$61.5m Class
A2 notes, both with weighted-average lives
of 1.9 years, priced at one-month BBSW
plus 145bp and 195bp.
The A$17.31m Class Bs, A$15.27m Class
Cs, A$10.8m Class Ds, A$6.78m Class Es and
A$4.14m Class Fs priced at 295bp, 395bp,
465bp, 650bp and 750bp over one-month
BBSW, respectively.
The transaction was completed with
A$4.2m of unrated retained Class Gs with a
4.0-year WAL.
The Bs to Es had 3.8-year WALs, while
the Fs had a 3.6-year WAL.
RedZed Lending Solutions specialises in
lending to self-employed people or those
self-certifying their incomes.› RMBS AUCTION RESOUNDING SUCCESSThe AUSTRALIAN OFFICE OF FINANCIAL MANAGEMENT
scored a resounding success with the
first auction in its revamped RMBS
disinvestment policy, suspended since
February 2016.
Of the seven securities auctioned last
Thursday, six were sold in full – the
A$87.7m Firstmac 2-2011 A3, A$128.75m
Progress 2012-1 A, the A$157.5m Puma
P-17 A2, the A$195m Torrens 2011-1E A3,
the A$282.5m Wide Bay 2009-1 A2 and the
A$81.2m Wide Bay 2010-1 A2 notes.
The lowest accepted clearing rates for
these notes were 100.71,101.405, 100.561,
100.826, 100.997 and 100.684, respectively.
Of the A$129.1m Firstmac 1-2012 A2
notes, 91% were sold at lowest accepted
clean price of 102.1. In total, the AOFM
raised just over A$394.5m from the auctions.
The AOFM, which said the auction revival
reflected the improvement in RMBS market
conditions, made three key changes to the
process.
The AOFM now discloses a reserve price
and no longer gives notice of the forward
auction pipeline, while the level sold is
the amount offered at or above the reserve
price, subject to sufficient volume.
In May 2015, the government ordered
the AOFM to sell-down its RMBS holdingsof A$4.6bn, in amortised face value terms,
to boost its coffers and increase liquidity in
these instruments.
The AOFM initially targeted monthly
sales of A$300m–$500m in AFV terms, but,
in June 2015, raised A$160m through the
first auction and, in September, sold only
A$78m.
In October 2015, the AOFM either
accepted no bids or received no bids
before cancelling planned November and
December auctions.
At the start, the AOFM emphasised that,
to preserve value for taxpayers, it would
not divest the securities at fire-sale prices.
Between 2008 and 2013, the AOFM had
to support the country’s mortgage market,
earmarking a total of A$20bn for purchases
of RMBS, eventually deploying A$15.5bn.SYNDICATED LOANS
› CARSALES.COM FINALISING LOANCARSALES.COM is finalising a loan with
relationship banks to back its W205bn
(US$164m) acquisition of the remaining
stake in South Korean online auto
classifieds business SK Encarsales.com.
Carsales head of external
communications Will Clarke said on
Monday that the company’s house banks
were ANZ, HSBC and National Australia Bank.
Carsales announced earlier on Monday
it had signed a binding memorandum of
understanding with SK Holding to buy the
remaining 50.1% of Encarsales it did not
own as part of its offshore growth strategy.
The acquisition is expected to be completed
in January 2018.› ALLOCATIONS OUT FOR WOODSIDEWOODSIDE PETROLEUM’s US$800m two-year
extension has been allocated with 26
existing lenders recommitting to the oil-
and-gas producer’s financing, the size of
which was reduced from US$1.2bn.
The loan, structured as a revolving credit
facility, is split evenly into tranches of three
and five years. Final commitments were
allocated equally across both portions.
The interest margins were 90bp over
Libor for the three-year tranche and
115bp over Libor for the five-year tranche,
the same as on the previous loan. The
commitment fee is 40% of the margin and
the extension fee was 10bp per year.
For full allocations, see http://www.ifrasia.com.› TUNNEL PROJECT LOAN TO LAUNCH SOONA loan of about A$4bn (US$3bn) for
a Lendlease Group-led consortium’sdevelopment of the Metro Tunnel project
in Melbourne is expected to be launched
into general syndication before Christmas.
The loan for the public-private-
partnership project is expected to be
launched after the consortium reaches
financial close in early December. ANZ, Bank
of China, Canadian Imperial Bank of Commerce,
Credit Industriel et Commercial, Credit Agricole,
DZ Bank, Industrial and Commercial Bank of
China, KfW, Mizuho Bank, United Overseas Bank
and Westpac are providing the senior loan.
Of the 11 lenders, only ANZ, CA, Mizuho
and Westpac are selling down a portion
of the loan, with around A$1bn left to
syndicate.
Interest is expected to be strong on
appetite from banks for government-
backed infrastructure assets, according to
lenders, despite the significant syndication
task. Scarcity value is also another factor
driving demand as many PPP projects are
closed on a club basis.
The YARRA PARTNERSHIP consortium
comprises Lendlease, John Holland,
Bouygues Construction and Capella Capital.
Melbourne’s Metro Tunnel, Victoria
state’s largest public transport project,
includes the construction of a 9km tunnel
and five new underground stations.
Construction is expected to begin in early
2018 and be completed in 2026.› RESPONSES DUE FOR HOTEL LOANResponses to the A$265m five-year loan for
the Four Seasons Hotel Sydney were due
last Friday.
Mandated lead arranger and bookrunner
Standard Chartered invited potential
lenders to commit at two ticket levels. As
MLABs with over A$65m, banks will earn
a participation fee of 45bp, while MLAs
with A$50m will earn a fee of 32.5bp. The
interest margin is 150bp over BBSY. The
loan comprises a A$180m refinancing
tranche and a A$85m capital-expenditure
tranche.
The borrower is AUSTRALIAN EXECUTOR
TRUSTEES, a non-government provider of
trustee services.
Four Seasons Hotel Sydney was sold to
Korea’s Mirae Asset Global Investments for
A$340m in 2013. Sydney-based Millinium
Capital Managers manages Mirae Asset’s
investment in the hotel.› ALINTA LOAN FOR LOY YANG B BUYALINTA ENERGY has lined up a loan of over
A$700m from seven banks to back its
acquisition of the Loy Yang B power plant
in Australia from Engie and Mitsui & Co.
The seven, including ANZ, Bank of
China, DBS Bank, SMBC and UOB, are key1019_06 Country01.indd 22 24/11/2017 21:56:01