COUNTRY REPORT
Australia 20 Bangladesh 23 China 23 Hong Kong 32 India 33 Indonesia 36 Japan 36 Malaysia 38
New Zealand 39 Papua New Guinea 40 Philippines 40 Singapore 41 Taiwan 42 Thailand 43 Vietnam 44AUSTRALIA
DEBT CAPITAL MARKETS
› VICTORIA TAPS 2028S FOR A$850M
TREASURY CORPORATION OF VICTORIA, rated Aaa/
AAA (Moody’s/S&P), issued the biggest
domestic trade of last week with Thursday’s
A$850m (US$612m) tap of the 3.00%
October 20 2028 bond to increase the size
of the line to A$4.117bn.
ANZ, Citigroup and UBS were joint lead
managers for the syndicated sale, which
priced at 100.693 for a yield of 2.92%.
The 36bp spread over EFP (10-year
futures) was in the middle of 35bp–37bp
guidance as today’s addition also priced
36bp wide of the November 2028 ACGB.
› SUNCORP COVERS A$750M FIVE-YEAR
Regular visitor SUNCORP-METWAY returned
to the domestic covered bond market last
Thursday with a A$750m dual-tranche
five-year sale at the tight end of revised
three-month BBSW and asset swaps plus
77bp–79bp area guidance.
The transaction comprised a A$200m
floating-rate note and a A$550m 3.0%
September 13 2023 priced at a clean price
of 99.954 to yield 3.01%.
Initial guidance was in the 80bp area.
ANZ, Deutsche Bank, NAB, RBC Capital
Markets and Westpac were joint bookrunners
the latest issue off Suncorp’s US$5bn
covered bond programme.
Suncorp-Metway previously visited
the local covered market in August 2017with a A$150m tap of its 3.25% August 24
2026s which increased the issue size to
A$600m.
The country’s fifth-largest bank andTop lead managers of Australian dollar-
denominated domestic securitisation,
inc-self-funded transactions ex-CDOs
1/1/18 – 31/8/18
Amount
Name Issues A$(m) %
1 NAB 19 5,558.1 30.6
2 CBA 13 2,709.2 14.9
3 Westpac 13 2,601.0 14.3
4 ANZ 6 1,926.2 10.6
5 Macquarie 7 1,335.3 7.4
6 BAML 3 770.0 4.2
7 Deutsche 3 620.5 3.4
8 JP Morgan 1 499.5 2.8
9 HSBC 2 436.6 2.4
10 MUFG 2 390.3 2.2
Total 28 18,176.4
*Market volume and including Kangaroo bonds
Proportional credit
Source: Thomson Reuters SDC Code: AJ5Top lead managers of all Australian debt, inc-
ABS, MBS (ex-self-funded transactions)
1/1/18 – 31/8/18
Amount
Name Issues A$(m) %
1 NAB 69 14,007.8 15.9
2 CBA 45 10,601.2 12.0
3 ANZ 57 10,411.0 11.8
4 Westpac 47 7,752.5 8.8
5 UBS 23 6,704.2 7.6
6 Deutsche 34 6,419.3 7.3
7 TD Sec 59 4,757.3 5.4
8 Citigroup 17 4,261.6 4.8
9 RBC Capital 43 3,434.6 3.9
10 Nomura 37 3,415.8 3.9
Total 251 88,037.5
*Market volume and including Kangaroo bonds
Proportional credit
Source: Thomson Reuters SDC Code: AJ3a
Top lead managers of all Australian securitisation,
inc-self-funded transactions ex-CDOs
1/1/18 – 31/8/18
Amount
Name Issues A$(m) %
1 NAB 19 5,837.6 29.7
2 Westpac 13 2,765.8 14.1
3 CBA 13 2,735.9 13.9
4 ANZ 6 1,926.2 9.8
5 Macquarie 7 1,335.3 6.8
6 Citigroup 2 944.8 4.8
7 BAML 3 796.7 4.1
8 Deutsche 3 647.2 3.3
9 JP Morgan 1 499.5 2.5
10 HSBC 2 436.6 2.2
Total 29 19,636.2
*Market volume and including Kangaroo bonds
Proportional credit
Source: Thomson Reuters SDC Code: AJ4AMP pays scandal premium
Bonds Large mark-up required for Aussie bank’s local market returnAMP BANK, rated A2/A (Moody’s/S&P), both with
negative outlooks, returned to the local senior
unsecured market last Tuesday with a A$400m
(US$288m) three-year floating-rate note
which paid a premium for parent AMP Group’s
prominent role in Australia’s financial scandals.
The new notes, arranged by a four-strong
syndication team comprising ANZ, Citigroup,
CBA and NAB, were upsized from an
indicative A$200m minimum issue size and
printed inside 110bp area guidance at three-
month BBSW plus 108bp.
Pricing was in line with AMP Bank’s
secondary curve but this has moved out more
than its peers since the start of the Royal
Commission into the Australian financial sector.
AMP Bank’s new notes paid a 36bp pick-up
over the 72bp spread for the A$300m three-
year FRN from higher-rated Oversea-Chinese
Banking Corp, Sydney branch (Aa1/AA–/
AA–), issued a week earlier.
In comparison AMP Bank, a wholly owned
subsidiary of AMP Group, sold a A$500m
three-year FRN in September 2017 at three-
month BBSW plus 75bp, a day after OCBC
Sydney’s A$200m three-year floater pricedjust 15bp tighter at 60bp over bank bills.
AMP, which provides superannuation and
investment products, insurance, financial
advice and banking products in Australia and
New Zealand, has suffered more than most
from widespread homegrown scandals.
In April chief executive Craig Meller and
chairman Catherine Brenner resigned after
AMP executives admitted in testimony
that the company had lied to the corporate
watchdog for almost a decade to cover a
practice of charging customers for services it
did not provide.
S&P subsequently placed AMP on credit
watch negative as it assesses the reputational
damage to AMP’s brand, while Moody’s
declared “AMP governance failures alleged
at the Royal Commission into the financial
sector are putting additional pressure on its
rating”.
In June investors appeared to push back
on AMP Group’s debut Swiss bond offering,
a SFr110m (US$112m) 0.75% 4.5-year note
which priced 85bp wide of mid-swaps, well
outside initial 65bp–70bp soundings.
JOHN WEAVERS