News
Reverse-enquiry interest sparked ANZ Banking Group’s return to domestic tier-two issuance on the heels of a jumbo print the bank executed in August. The issuer says the decision to open the latest deal up from reverse enquiry paid off, with tenor and pricing points attracting strong investor support domestically and offshore.
Westpac New Zealand says it does not plan to place a substantial proportion of its remaining new local tier-two requirement in the domestic market despite a significant oversubscription for its NZ$600 million (US$357.4 million) print on 8 September. The deal hit a sweet spot for pricing that attracted retail and institutional investors, supporting the positive outcome.
Transpower says a higher coupon attracted a strong retail bid for its second green bond, with this investor segment taking a relatively higher proportion of the book than is typical for the issuer. The deal also represents a further step for Transpower toward a green debt portfolio, which expects to print another bond by year’s end.
Chorus conducted an unusual liability management tender process alongside its return to euro issuance. Deal sources say the buyback and simultaneous issuance was a win for investors, allowing them to offload short-dated debt and extend duration without changing exposure limits.
North Queensland Airports used a routine debt refinancing to further its sustainability ambitions by aligning with its environmental strategies through a sustainability-linked loan. The facility is the first in Australia to target biodiversity and natural capital, and deal sources say it demonstrates the potential of sustainable finance beyond emissions reduction.
The Australian Prudential Regulation Authority’s interim target for Australian major banks’ total loss-absorbing capacity is less than 18 months away, and while recent tier-two deal flow suggests liquidity is available pricing has registered a stark widening. Dealers and intermediaries say spreading the issuance net will likely be key to managing higher cost of additional capital.
New Zealand Debt Management published its sovereign green-bond framework and associated second-party opinion on 14 September, confirming at the same time that it plans to issue a debut transaction late this calendar year. The framework provides detail on planned use of proceeds from New Zealand sovereign green-bond issuance and explains how the programme aligns with national environmental priorities.
Europe is responding to a looming energy crisis by reviving and ramping up fossil fuel power. But its longer-term commitment to renewables transition remains in place and is only being enhanced by a new focus on energy security, according to new research from MUFG Securities’ capital markets strategy group. While Australia will be shielded from the crisis to at least some extent, local companies should not mistake emergency measures elsewhere for a change in direction.
The Australian Sustainable Finance Institute has a new board, a more permanent role and a freshly minted executive officer, Kristy Graham. The institute’s goals have not changed: to drive realignment of the Australian financial services system so more money flows to support sustainability. Graham updates KangaNews Sustainable Finance on developments including taxonomy progress and work with international peers.
The New Zealand Financial Markets Association’s recently published debt capital market guidelines give participants a roadmap to greater clarity and best practice, particularly for new and infrequent issuers. The guidelines are part of the association’s push to develop New Zealand’s debt market, making it more inclusive.
New Zealand’s official cash rate will likely hit 4 per cent, but a range of domestic and global factors will dictate how long it stays elevated. The impact of a higher rate on the country’s economy, however, is unclear – particularly as interest rate risk remains to the upside, according to economists.
Australian nonbank lenders have long discussed the potential alignment of the type of lending they do with social-bond funding. As the first local issuer to bring an all-social residential mortgage-backed securities deal, Pepper Money says the value of the platform is primarily about the opportunity this type of funding offers for future development of lending product.