NAB and CommBank share tier-two insights as the last of the big four issue new deals
While Commonwealth Bank of Australia (CommBank) stayed at home to execute its debut tier-two transaction under the Basel III regime, a perceived acknowledgement that the Australian domestic market is unlikely to have the capacity to service the aggregate tier-two funding requirements of Australia's big-four banks drove National Australia Bank (NAB) to the more expensive euro market at almost the same time.
APRA winds back some foreign branch concessions in final liquid-assets treatment
The Australian Prudential Regulation Authority (APRA) released the final version of its APS 210 rules on November 4. The new regime contains few changes from existing expectations, other than a second revision in just over two months of the liquid-asset rules which will be applied to foreign-bank branches operating in Australia.
RBNZ on hold again – and analysts believe tightening bias is slipping
Following four consecutive rate hikes and then a hold decision at its September meeting, the Reserve Bank of New Zealand (RBNZ) left the official cash rate (OCR) on hold at 3.5 per cent when it met on October 30. The reference to further rate increases has been removed from the RBNZ's statement, and with only one meeting left before the end of the calendar year – on December 11 – many analysts now predict a stable OCR well into 2015.
AGL hits record volume as leads predict busy corporate flow in Q4
Deal sources say domestic investors showed strong support for AGL Energy (AGL)'s inaugural senior-unsecured Australian dollar deal, allowing the borrower to price the largest-ever single-tranche triple-B corporate deal at tight pricing. Lead managers point to a revival of the market following a month of volatility and also flag a strong late-year pipeline for others to follow suit.
A$150 million targeted for debut of Australia's "third layer of government" issuer
Australia's first collective vehicle for funding local authorities is closing in on a market debut, with minimum volume of A$150 million (US$131.6 million) targeted. The Local Government Funding Vehicle (LGFV), which aims to provide lower-cost, capital-markets funding for councils in the state of Victoria, received a rating on October 9 having already roadshowed to institutional investors – and could launch a debut transaction in the near future.