BoTM pays up in domestic market
Members Equity Bank (rated BBB+) kicked off issuance for the week in the domestic debt market, selling A$200 million of one year floating rate notes at a spread of 70 basis points over bank bills.The Sydney branch of Bank of Tokyo Mitsubishi (rated A+) raised A$750 million for four years. The two tranche issue comprised A$600 million of FRNs and A$150 million of fixed rate notes, priced at 97 bps over bank bills/swap.The pricing of the transaction is considerably wider than the 83 bps over that BoTM paid for four-year funds in September. The SSA sector was represented by Nordic Investment Bank (AAA), Kommunalbanken (AAA), World Bank (AAA) and Rentenbank (AAA). The latter two also issued in New Zealand last week.NIB added A$200 million to its February 2020 line, to take the total outstanding to A$500 million. The increase was priced at 50.5 bps over Commonwealth government securities.Kommunalbanken's July 2024 line now stands at A$550 million after the bank added A$100 million, on Friday. The increase will yield 58 bps over CGS. Rentenbank added A$150 million to its September 2022 line, at a spread of 53.5 bps to CGS, to take outstandings to A$400 million. World Bank opened a new March 2020 line at A$550 million. The bonds were sold at a margin of 48 bps over CGS.Completing domestic activity, NAB undertook preliminaries for a A$750 million prime RMBS issue via National RMBS Trust 2015-1. Lastly, ANZ's Capital Notes 3 commenced trading on the ASX at noon on Friday. The final issue size came in at A$970 million and the notes closed at A$100.03 on the day.