News
The private-debt asset class is growing as investors seek reliable return in the ultra-low rates and spread environment. As private debt becomes increasingly mainstream, Commonwealth Bank of Australia and KangaNews explore how investors integrate environmental, social and governance practices in their strategies.
For the second year running, ANZ and KangaNews hosted a roundtable discussion – this time in late September – to discuss conditions in the Australian secondary market and what trading realities say about macro trends.
Bolstered by a – for a time – record iron-ore price and a largely COVID-19-free existence, Western Australia has enjoyed a unique economic rebound in 2021. The state’s premier and treasurer, Mark McGowan, explains why the state government is keeping cautious budget and public-health policy settings in place.
Market talk is growing about a potential return to offshore issuance by Australian securitisation issuers – including some nonmortgage asset-backed securities – if supply continues to grow and spreads widen. Despite a record year and a strong October, some investors note recent and expected developments in the credit market could soften demand as issuers prep further deals to finish out the year.
GPT Funds Management’s first green bond engaged new investors, with its 10-year tenor and use-of-proceeds format attracting a A$350 million orderbook from 35 accounts. With A$6.4 billion of eligible green assets, the firm says it has scope for future issuance.
Resimac’s Bastille Trust Series 2021-2NC is only the second Australian-origin securitisation transaction this year to include foreign-currency tranches. Execution certainty at attractive pricing levels drove the decision as the domestic market prepares itself for supply-side changes.
Kiwibank is the first New Zealand issuer to price an additional tier-one deal under the Reserve Bank of New Zealand’s new bank-capital definitions. The transaction was popular with retail buyers – nearly three times oversubscribed – as the domestic market continues to rally.
The Reserve Bank of New Zealand aims to introduce a climate change scenario-based industry stress test by 2023 as part of its focus on the risk climate change poses to financial stability. It also says it is paying close attention to global moves to incentivise lending to environmental transition through the banking sector regulatory regime.
All eyes were on Bank of Queensland’s latest five-year senior-unsecured transaction as the secondary-market curve widened in the wake of changes to the committed liquidity facility announced last month. The issuer tells KangaNews demand for the deal was above expectations, with strong participation from real-money investors.
KfW Bankengruppe’s most recent tap took the issuer to its largest volume issued in the Kangaroo market since 2015, including its record for Australian dollar green-bond issuance. The agency says it is optimistic about future Kangaroo issuance prospects, noting incremental demand for green bonds and improved economics in the near term and over the course of the year.
New Zealand’s External Reporting Board has embarked upon a consultation with business on the first part of the standards underpinning the country’s mandatory climate-reporting legislation. The reforms – closely aligned with the Task Force on Climate-related Financial Disclosure recommendations – is making its way through parliament, though concerns about international compatibility remain.
Wesfarmers returned to the euro market, for the first time in seven years, with a sustainability-linked bond, reaffirming its ambitious targets amid softer market conditions. The borrower opted to retain the same sustainability-performance targets from its June Australian dollar debut, a decision issuer and leads say investors welcomed.