COUNTRY REPORT
Australia 19 China 20 Hong Kong 26 India 28 Indonesia 31 Laos 33 Japan 32 Macau 34 Malaysia 33
New Zealand 34 Philippines 34 Singapore 35 South Korea 36 Taiwan 37 Thailand 38AUSTRALIA
DEBT CAPITAL MARKETS
› VICTORIA THREE-YEAR NETS A$2BN
TREASURY CORPORATION OF VICTORIA, rated Aaa/
AAA (Moody's/S&P), targeted the short end
of the domestic bond market with last
Tuesday's A$2bn (US$1.42bn) syndicated
three-year sale via joint leads Deutsche Bank,
NAB and Westpac.
The 2.25% October 29 2021s priced at
99.856 for a yield of 2.3%, within 19.5bp–
21.5bp guidance at 20bp over EFP (three-
year futures contract) and 21bp wide of the
December 2021 ACGB.
Earlier this year, TCV focused on
longer-dated syndicated issuance. On
January 23, the state government funding
arm tapped its 3% October 20 2028s and
4.25% December 20 2032s for A$800m and
A$500m, respectively, before increasing
the 2028s by a further A$850m on
September 6.
› BROAD DEMAND FOR KEXIM KANGAROO
The EXPORT-IMPORT BANK OF KOREA (Aa2/
AA/AA–) attracted a peak order book
in excess of A$830m for last Tuesday's
A$500m sale of five-year floating-rate
Kangaroos arranged by ANZ, Mizuho and
TD Securities.
Demand was broad-based, with Asian,
Australian and EMEA investors taking 51%,
41% and 8%, respectively.
Asia bought a larger, 59% share of
identically rated Korea Development
Bank's A$400m five-year Kangaroo FRN
issued on October 12. Australian accounts
took 30% of that trade and EMEA 11%.
Banks were allocated 66% of the new
Kexim note, asset managers 25%, official
institutions 5% and others 4%.
The Kexim October 30 2023s priced
inside 98bp area guidance at three-month
BBSW plus 95bp, which is 3bp tighter
than the 98bp margin paid by KDB, whose
note performed strongly in the secondary
market.
Kexim also paid just 2bp more than the
93bp spread for the A$2bn dual-tranche
domestic five-year sale by similarly rated
National Australia Bank (Aa3/AA–/AA–) on
September 18.
Such a modest premium over Australia's
major banks reflects a much improved
geopolitical backdrop in the Korean
peninsula in recent months.
At its previous Kangaroo visit on
February 7 2017, Kexim sold a A$400m
dual-tranche five-year note at 117bp over
asset swaps and three-month BBSW.
On February 27, Australia and New
Zealand Banking Group printed a A$2bn
two-part five-year at 100bp over.› SUNCORP TAPS FLOATER FOR A$500MSUNCORP-METWAY (A1/A+/A+) tapped its
August 16 2022 senior unsecured
floating-rate note for A$500m last
Wednesday to double the size of the line
to A$1bn.
ANZ, RBC Capital Markets and Westpac
were joint lead managers for the
reopening, which had a minimum size
requirement of A$250m. It priced at
100.331, inside 90bp area price talk at
three-month BBSW plus 88bp.
The initial A$500m sale of the note on
August 10 last year priced 97bp wide of
three-month BBSW.› NWB OPENS 2029 KANGAROO LINEDutch agency NEDERLANDSE
WATERSCHAPSBANK, rated Aaa/AAA (Moody’s/
S&P), opened a 10.5-year benchmark
Kangaroo line with last Tuesday's
A$260m sale via sole lead manager
Nomura.
The 3.30% May 2 2029s priced at 99.780
to yield 3.325%, 52bp wide of asset swaps
and 62bp over the April 2029 ACGB.STRUCTURED FINANCE
› BOQ READIES REDS ABSInitial price talk has been released at one-
month BBSW plus 105bp–110bp for the
indicative A$389.5m (US$275m) Class A
notes of the REDS EHP 2018-1 ABS offering.
The Class B notes will be retained by the
issuer.
Originator Bank of Queensland mandated
ANZ, Macquarie, NAB and Westpac to
arrange recent investor meetings for the
securitisation.
Series 2015-1 Reds EHP Trust, a A$750m
offering of securities backed against BoQ
equipment finance-originated automotive
and equipment loans and leases, was issued
in September 2015.› THINK TANK MARKETS RARE CMBSTHINK TANK GROUP has mandated CBA,
Deutsche Bank and Westpac to arrange
investor meetings from October 29 for a
potential Australian dollar SME commercial
mortgage-backed security issue.
The specialist non-bank lender
previously issued a A$300m offering of
commercial mortgage-backed securities
in December 2017 via Think Tank Series
2017-1 Trust.
It also printed a A$280m CMBS in
October 2016 through ConQuest 2016-2.
Besides Think Tank, only Liberty
Financial has been a regular visitor to the
market in recent years.
Most large Australian commercial
property companies have steered clear of
relatively complex and expensive CMBS
because of the competitive pricing available
in the local loan markets, as well as the
domestic and offshore bond markets for
longer maturities.SYNDICATED LOANS
› VICINITY HOLDS NON-DEAL MEETINGSAustralia-listed VICINITY CENTRES held non-deal
meetings with banks last week.
Mizuho Bank helped the company organise
the meetings.
Vicinity Centres is said to be considering
borrowing next year.
The company comprises Vicinity Centres
Trust, which holds the group’s shopping
malls, and Vicinity, which manages and
develops the properties.
The group, which owns 73 malls in
Australia, is rated A2/A (Moodys/S&P).EQUITY CAPITAL MARKETS
› YANCOAL SURVEYS NOVEMBER LAUNCHASX-listed coal miner YANCOAL AUSTRALIA
is evaluating an option to open books
for a Hong Kong dual primary listing in
November, according to people close to the
deal.
Yancoal, which finished a two-week
pre-marketing drive around mid-October,
is assessing market conditions and plans
to move the deal forward if markets
stabilise after the November 6 US midterm
elections, said the people.
Other Australian issuers have seen their