This year we expect the banks to return to the bond market in full force as the cheap money, Term Funding Facility (TFF) ended 30 June 2021, and they need to start repaying funds next year.
CBA launched 2022 with a massive senior unsecured $4 billion issue – $3.1 billion in floating rate securities issued at 3 month BBSW + 70bps and $900 million fixed rate with an issue yield of 2.43% and fixed rate coupon of 2.4%.
Suncorp followed suit with a senior unsecured deal and managed to raise $1 billion – $775 million floating rate at 3 month BBSW + 78bps and $225m fixed rate with an issue yield of 2.56% and fixed coupon rate of 2.5%.
Yesterday Westpac launched a five year senior unsecured deal and by close of business has raised $2.75 billion. The $1.9 billion floating rate tranche was priced at 3 month BBSW +70 bps, while $850 million the fixed rate tranche had an issue yield of 2.51% and a 2.4% fixed coupon rate.
Rabobank has announced it is taking indications for a five year senior unsecured transaction. The deal is being offered as either or both floating and fixed with initial price guidance of 78 basis points over swap benchmarks.
NAB elects to issue offshore
NAB issued a US$4.8 billion five-tranche deal on 4 January that includes senior and Tier 2 notes. Two days later it followed with a £1.5 billion (US$2.1 billion) short four-year covered bond, priced at 27bps over SONIA. Combined the transactions are worth over A$9 billion and goes a long way towards its 2022 wholesale funding task.
Source: KangaNews
