Fixed income funding: domestic AUD update
A few medium term note issues were launched and priced on the domestic AUD market yesterday:• Westpac Banking Corporation has priced a new A$2.150 billion three-year benchmark senior unsecured floating rate medium term notes. Redemption date is 10 May 2019. The transaction is expected to be rated AA- by S&P and Aa2 by Moody's. The sole lead manager is Westpac Institutional Bank. The notes carry a coupon of 100 basis points over three month BBSW and were priced at par.• Bank of Tokyo Mitsubishi UFJ, Sydney Branch, rated A1 by Moody's and A+ by S&P, has priced a new four-year A$500 million benchmark floating rate note. This new issue was priced at par with a coupon of 150 basis points over the three-month BBSW, to be paid quarterly in arrears. The maturity date for these notes is 16 March 2020. Joint lead managers on the transaction are Morgan Stanley, MUFG, ANZ, and NAB.• The Commonwealth Bank of Australia (rated Aa2 by Moody's, AA- by Standard & Poor's and AA- by Fitch), has mandated Citi, CBA, Deutsche Bank and Morgan Stanley as joint bookrunners for a new US dollar-denominated three-year FXD and/or Floating and a five-year fixed senior unsecured benchmark. As with all capital markets pre-sale announcements, the bank has warned that "the transaction will be launched in the near future, subject to market conditions."