Hybrids

The Commonwealth Bank of Australia (CBA) has launched a new tier-one capital transaction PERLS XIII, seeking A$750 million. The new offer aligns with spreading the refinancing of $6.1bn of hybrids, spanning the $1.45bn CBAPE (Oct 2021), $1.64bn CBAPF (Mar 2022) and $3.0bn CBAPD (Dec 2022). The Commonwealth Bank PERLS deal, which...

The new Macquarie Group Capital Notes 5 (MQGPE) offer has been swamped with demand and repriced to a margin lower than the 3.00-3.20% bookbuild range at a final margin of 2.90% above 3 month bank bill. On Friday, Macquarie Group Limited announced the allocation of A$550 million of MQGPE to...

Macquarie Group Limited (MGL) has launched its Capital Notes 5 (MQGPE) to replace its $531 million Capital Notes 2 (MQGPB) ahead of that issue’s first optional exchange on 17 March 2021. The offer is for $500 million. According to Bell Potter, new hybrid issues are increasingly aligned to maturing hybrids...

Today, National Australia Bank launched a new Tier 1 hybrid, NAB Capital Notes 5 (NABPH) hoping to raise $750m or more to fund the NAB Convertible Preference Shares II (NABPB) ahead of its 17 December 2021 call date. The hybrid is due for a first call in December 2027 with...

Citi Australia has moved to expand its access to fixed income products and services that will deliver a higher yield for clients while offering some protection from market shocks. Citi will begin offering high yield bonds, hybrids and capital notes to its wholesale client base. It will also provide access...

Today, Westpac launched a new Tier 1 hybrid, raising funds to repay the WBCPF due for first optional call in March 2021. Westpac is the first major bank to launch a new issue this year and with an expected margin over 3 month BBSW of 340 - 360 basis points...

Last week, Bendigo and Adelaide Bank launched a new hybrid seeking to raise $350 million. The proceeds will be used for the redemption of BEN’s convertible preference shares. The notes have a call date of 15 June 2027 and a mandatory exchange date on 15 June 2029. The deal is...

NABHAs being redeemed at last? NAB has announced that it will be seeking shareholder approval at its AGM to redeem its NABHA perpetual hybrid in 2021. The bank also needs board approval which has not yet been granted. NABHAs were issued more than 20 years ago in July 1999 at a very...

After writing down the value of its mall portfolio by more than $4 billion in its interim accounts, Scentre Group has gone to the US market and raised US$3 billion in a subordinated hybrid note issue. The Group had hoped to raise US$1.5 – US$2 billion, but accepted substantially more,...

NAB recently launched a new hybrid and raised $600m, less than a third of the $1.95bn accepted earlier this year. Pricing was higher at 400 basis points over three-month bank bills compared to 295 basis points back in March. The lower $600m amount is likely in part to reflect the higher...