Australia/New Zealand Loan House
In an intensely competitive market, one bank had a record year in 2011 in the Australian and NZ loan markets. For its renewed appetite for underwriting, sound deal execution and consistent leadership, National Australia Bank is IFR Asia’s Australia and NZ Loan House of the Year.
Against an uncertain backdrop, National Australia Bank stood out in the last 12 months in a competitive market. The bank’s 17 lead mandates covered a wide range of transactions from corporate loans to project financings and leveraged buyouts.
Despite intense competition, it expanded its market share and registered the biggest market-share gain of any bank on a year-on-year basis.
Of NAB’s 17 mandates, an impressive 10 were on a sole basis, including loans for real-estate developer Australand Property Group, department store operator Myer Holdings and internet search firm SEEK.
The bank’s willingness to underwrite deals was a big factor in its success. NAB underwrote eight loans, including SEEK’s A$340m (US$335m) facility on a sole basis. Part of the loan was used to finance SEEK’s acquisition of an online employment company in Asia.
NAB jointly underwrote a A$1.1bn acquisition loan to fund Origin Energy’s A$3.25bn acquisition of energy retail businesses from the New South Wales Government.
The bank also financed TRUenergy’s acquisition of another set of energy assets from the New South Wales authorities.
NAB has a stellar base of blue-chip corporate clients and can boast the likes of supermarket giant Woolworths, hospital operator Ramsay Health Care and property firm Lend Lease among them.
“We have targeted the top 200 ASX corporations,” said Christine Yates, a managing director and NAB’s head of debt markets origination.
Beyond its impressive corporate relationships, the bank also led transactions across a diverse range of sectors, such as utilities, infrastructure, financial institutions, manufacturing, health, retail and real estate.
Australia’s leveraged loan scene has predominantly been a club market since the financial crisis as banks shied away from taking on syndication risk and private-equity sponsors baulked at the high costs involved.
Bucking the trend, NAB clinched an underwriting and bookrunning role for the A$580m loan to back Bain Capital’s buyout of MYOB. This was a rare syndicated leveraged loan and highlighted the bank’s willingness to assume underwriting risk in a risk-averse market.
NAB also boasts an impressive project finance book. It was one of three underwriters on the A$745m project loan for Plenary Living, which won a tender to develop accommodation for members of the Australian Defence Force.
The loan was the first Australian social public-private partnership to be underwritten since the global financial crisis. NAB was also one of the leads on the A$2.5bn seven-year project loan to redevelop the Royal Adelaide Hospital, the largest PPP deal in Australia in 2011.
In addition to greenfield project loans, NAB was one of the key lenders on the A$1.1bn project financing to back Global Infrastructure Partners’ acquisition of Port of Brisbane.
The sale was part of the Queensland State Government’s A$15bn privatisation programme.
In the financial institution market, NAB has assisted borrowers, such as American Express, Bank of Queensland and National Wealth Management, diversify their funding sources. It stepped up as one of four bookrunners for a mammoth A$4.5bn refinancing for Amex, which showed NAB had improved its relationship with the client. The loan was oversubscribed with A$5.8bn in commitments garnered.
Across the Tasman, NAB’s Kiwi subsidiary, Bank of New Zealand, secured several key sole lead roles on transactions for corporate clients, including New Zealand Comfort Group, Ravensdown Fertiliser, Metlifecare and Matariki Forests.