CBA round out a jumbo month in debt market
Commonwealth Bank (rated AA-) chose the end of the month to become the last of the Big Four banks to hit the US s144A market with a jumbo raising since the beginning of July.NAB kicked things off with a US$4.0 billion rasiing in early July. ANZ followed a few days later, raising US$1.6 billion. In early August, Westpac raised US$5.0 billion, and on Wednesday last week CBA raised a total of US$3.3 billion.CBA sold US$700 million of three year bonds and US$1.0 billion of ten year bonds. The bonds were priced at 65 basis points and 110 bps over US Treasury bonds, which NAB reports swapped back at around 55 bps and 158 bps over bank bills.CBA also sold US$1.0 billion of five year bonds and US$600 million of five year FRNs. The bonds were priced at 85 bps over Treasuries and the FRNs at 83 bps over Libor.The proceeds swapped back at around 106 bps over bank bills, according to NAB. In the domestic corporate bond market, meanwhile, August has proved to be the third busiest month of the year to date.May was the busiest month with A$13.1 billion of bonds issued. July follows at A$10.3 billion and August saw issuance totalling A$10.1 billion.Year to date issuance now stands at A$69.7 billion, just ahead of the A$66.5 billion total at the same time last year.The highlights of the month include the A$2.75 billion, five year, issuance from ANZ in the second week, and the debut of Nissan Financial Services Australia, on the last day of the month.Nissan Financial Services Australia (A-) was one of just four issuers seen in the market last week. Nissan raised A$300 million for three years and paid 100 bps over swap.On the same day, Nederlandse Waterschapsbank (AAA) added A$55 million to its September 2026 line, taking the total outstanding to A$410 million. The increase was priced at 85.25 bps over Commonwealth bonds to yield 3.70 per cent.On Thursday, the Sydney branch of China Construction Bank (A) made its fourth annual visit to the market to raise A$500 million for three years. The FRNs will pay 105 bps over bank bills.And the Australian branch of Rabobank (A+) saw out the week with a A$40 million addition to its May 2026 line. The increase was priced at a seemingly tight 121 bps over swap and takes the size of the line to A$320 million.Rabobank's last addition to the line in early July, was priced at 135 bps over. ANZ New Zealand (AA-) approached the New Zealand wholesale market to sell NZ$150 million of three year FRNs, priced at 95 bps over bank bills.