COUNTRY REPORT CHINAThe largest single tranche semi-
government print since March 2013,
arranged by ANZ, Citigroup and UBS, priced
at 99.274 for a reoffer yield of 3.30%.
Pricing was within 58bp–61bp guidance
at 59bp over EFP (10-year futures contract)
equivalent to the April 2029 ACGB plus
60.1bp.
On July 10, QTC tapped its 3.50% August
21 2030 bond for A$1bn at an EFP spread of
67bp, 61.25bp wide of the May 2030 ACGB.
On January 30, QTC opened a new
A$2.0bn four-year floating note alongside a
A$500m increase to its 3.25% July 21 2028s.
STRUCTURED FINANCE
› CUA PRIME RMBS NETS A$700M
CREDIT UNION AUSTRALIA issued its first
securitisation in 16 months last Friday with
an enlarged A$700m (US$497m) offering of
prime RMBS via SERIES 2018-1 HARVEY TRUST.
NAB was arranger of the transaction
which had an indicative minimum size of
A$500m. NAB was also a joint lead manager
with ANZ, Macquarie and Westpac.
The A$644m Class A notes with a 3.2-year
weighted-average-life priced in line with
one-month BBSW plus 120bp area initial
price talk.
The A$38.5m Class ABs, A$10.5m Class
Bs, A$5.6m Class Cs and A$1.4m Class Ds,
all with 5.9-year WALs, priced 175bp, 210bp,
260bp and 590bp wide of one-month BBSW.
This compares with respective IPTs of
180bp area, 200bp area, mid 200s area, and
high 500s area.
The non-bank lender previously issued an
upsized A$900m Series 2017-1 Harvey Trust
RMBS in June last year whose tranches had
similar WALs.
The 2017-1 Class A1s, ABs, Bs, Cs
and Ds priced at one-month BBSW plus
115bp, 180bp, 220bp, 315bp and 585bp,
respectively.
› LA TROBE MARKETS SEVENTH RMBS
LA TROBE FINANCIAL has mandated HSBC,
Macquarie, NAB, United Overseas Bank and
Westpac to arrange domestic and offshore
investor meetings from October 22 for a
potential RMBS transaction.
In March, the non-bank lender issued its
sixth and largest batch of non-conforming
RMBS with a A$750m sale through La Trobe
Financial Capital Markets Trust 2018-1.
› BANK OF QUEENSLAND READIES ABS
BANK OF QUEENSLAND has mandated ANZ,
Macquarie, NAB and Westpac to arrange
investor meetings from the week
commencing October 22 for a potential
Australian dollar-denominated issue under
the REDS EHP ABS programme.
BoQ sold Series 2015-1 Reds EHP Trust,
an enlarged A$750m offering of securities
backed against BoQ Equipment Finance-
originated automotive and equipment loans
and leases, in September 2015.EQUITY CAPITAL MARKETS
› CENTURIA BAGS A$179M FROM INSTOCENTURIA METROPOLITAN REIT has raised a total of
A$179m (US$127m) from the institutional
tranche of an entitlement offer and a
placement to part-fund the acquisition of
four metropolitan offices.
The institutional entitlement offer,
which raised A$100m from about 41m
shares, was well supported by existing
institutional security holders, with a
take-up rate of approximately 95%. The
shortfall attracted strong demand, with
support from both existing and new
security holders.
About 33m shares were offered under
the A$79m placement. It received
strong demand from new and existing
institutional investors.
The capital raising exercise is aiming for
A$276m in total.
The REIT launched a A$197m non-
renounceable entitlement offer comprising
80.9m new units at A$2.43 each on a 1–for–3
basis. The price represents a 4.7% discount to
the last close of A$2.55 on October 9.
The retail portion of the entitlement
offer will run from October 16–29 and is
expected to raise approximately A$97m.
Centuria Capital Group, the holding
company of the REIT with a 23.4%
shareholding interest, has committed
to subscribe to its full entitlement in
the equity raising. The group has also
sub-underwritten A$50m in funding the
transaction.
Shares of Centuria Metropolitan REIT
resumed trading last thursday and opened
at A$2.45.
The 2015-listed REIT owns 19 assets in
a A$930m portfolio. It plans to acquire
four office assets from Hines Global REIT
for A$500.9m. Two of the offices are in
Brisbane, one is in Melbourne and one is in
Sydney.
Moelis Australia Advisory and UBS are the
underwriters for both fundraisings. Shaw &
Partners is the co-lead manager.› CORONADO WOOS INSTO FOR A$1.4BN IPOUS coking coal miner CORONADO GLOBAL
RESOURCES will earmark 85% of its up toA$1.4bn IPO for institutional investors, a
person familiar with the situation said.
“Feedback from the roadshow has been
positive and very well received,” the person
said as the three-week roadshow ended on
Friday. Given the strong engagement from
institutional investors, the high allocation
has been decided, he said.
The rest of the offer will be sold to retail
investors.
The roadshow took in Australia, Asia,
Europe, the US and Canada.
The deal is set to be the biggest coal
mining float in six years in Australia.
It comprises 290m CDIs, of which 57%
will be new shares and 43% secondary
shares, at an indicative price range of
A$4.00–$4.80 each. CDIs, short for CHESS
Depositary Interests, allow international
companies to trade on the Australian
Securities Exchange.
The range represents a market
capitalisation of A$3.8bn–$4.4bn and a 2019
forecast EV/Ebita of 3.7x–4.4x.
Coronado is owned by Texas-based
private investment firm Energy & Mineral
Group, which is expected to hold about
70% of the company after the completion of
the IPO. It set foot in Australia only seven
months ago when it acquired a major mine
in the country.
The retail offer, including a broker firm
offer, runs from October 2 to October 15.
Books will open from October 18 to
October 19. The final price will be set on
October 22.
The company’s shares will start trading
on the ASX on October 23.
Goldman Sachs is the sole global
coordinator. It is also the joint lead
manager with Bell Potter Securities, Credit
Suisse, and UBS.CHINA
DEBT CAPITAL MARKETS
› ANHUI INVEST PRINTS DEBUT US$ BONDANHUI PROVINCIAL INVESTMENT GROUP HOLDING,
rated A3/A– (Moody’s/Fitch), priced a
debut US$400m bond after drawing over
US$1.4bn of final orders from 80 accounts.
The 4.875% three-year Reg S notes
were priced at 99.689 to yield 4.988%, or
Treasuries plus 200bp, the tight end of final
guidance of 200bp-205bp, and well inside
initial 230bp area guidance.
The senior unsecured bonds have
expected ratings of A3/A– (Moody’s/Fitch),
in line with the issuer.