News
Sumitomo Mitsui Banking Corporation Sydney Branch (SMBC Sydney)’s latest transaction was the largest-ever Australian dollar deal from a bank with offshore parentage. It was also the largest credit deal since the onset of the COVID-19 crisis.
The Green and Social Bond Principles (GBP SBP) is broadening further the scope of its focus on sustainability in fixed-income markets, with an update to its social bond principles (SBPs) and the launch of sustainability-linked bond principles (SLBPs). The new SLBPs are designed to provide the impetus for more entities to consider sustainable financing options, while the update to the SBPs is particularly relevant in the context of addressing the COVID-19 pandemic and the coming economic and social recovery.
Spark Finance is the first New Zealand domiciled corporate issuer to execute a public debt capital markets transaction in 2020 – and it chose Australia for its 28 May deal. The borrower says establishing and maintaining a funding presence in Australian dollars is a key component of its debt strategy.
The Australian dollar market hit a sweet spot for global financial institution (FI) borrowers in the second half of May despite the ongoing absence of the biggest local issuers. Intermediaries say the supply gap has caused a technical pricing squeeze that attracts issuers, while offshore FI pricing remains attractive to real-money investors relative to local names.
Australia’s sovereign rating will be tested in the coming months as the ramifications of the COVID-19 crisis play out through the economy, according to Fitch Ratings. A newly placed negative outlook on Australia’s AAA rating relates to significant downside risks in the domestic economy, including household debt, as well as global factors such as newly levied trade barriers.
Export-Import Bank of Korea (Kexim) took advantage of its position as a known quantity in an Australian dollar market that is still short of primary supply to execute its largest-ever Kangaroo deal. The issuer says it is not affected by the basis swap issues that have plagued Kangaroo economics in 2020.
Airservices Australia (AsA) returned to the domestic bond market in May at a time of unique uncertainty for the global aviation industry. As a government-owned and triple-A rated corporate entity, AsA also lacks obvious pricing comps. Neither factor proved an impediment to a well-supported transaction, deal sources say.
The cautious but early emergence of Australia and New Zealand from the COVID-19 crisis enabled Scentre Group to convey a positive forecast to debt investors in its recent US dollar deal. The result, deal sources say, was an endorsement for the company and for the prospects of antipodean economic recovery.
Western Australian Treasury Corporation (WATC) says issuing a new 2031 line was always part of its long-term funding strategy even before semi-government borrowers faced a substantially higher funding need in response to the COVID-19 crisis.
The Australian Office of Financial Management (AOFM) and Australian Securitisation Forum (ASF) are finalising terms for a forbearance special-purpose vehicle (SPV), designed to provide relief to nonbank and small bank lenders with securitisation trusts affected by forbearance on loans as a result of COVID-19.
Woolworths Group reopened the Australian dollar corporate bond market on 13 May with a dual-tranche transaction that leads say attracted a surprising level of support for 10-year tenor.
The Australian Office of Financial Management (AOFM)’s December 2030 syndication provided an opportunity to test capacity amid what the issuer says are greatly improved market conditions.