News
Sydney Airport’s market leadership, and the willingness of US private placement (USPP) investors to provide structural flexibility in transactions, were crucial to the execution of the world’s first sustainability-linked bond (SLB) with two-way pricing. Deal sources are bullish on proliferation of the product.
Western Australian Treasury Corporation (WATC)’s latest transaction shows that banks’ demand for semi-government floating-rate note (FRN) issuance is still evident as they work to fill their high-quality liquid asset (HQLA) requirements.
South Australian Government Financing Authority (SAFA) printed its longest-dated maturity – a 12-year bond – on 13 February, as European investors’ strong participation in semi-government deals continued.
A large maturity and pricing that has moved more in line with global markets allowed World Bank to make its first foray into antipodean markets for 2020 with a New Zealand dollar deal. Domestic balance-sheet support anchored the transaction, lead managers say.
Nonmortgage securitisation for 2020 got under way in January with auto asset-backed securities (ABS) deals from Pepper Group (Pepper) and Liberty Financial (Liberty). Ongoing investor appetite for diversifying collateral in the sector buoyed demand, deal sources say.
The federal government is re-evaluating its plan to facilitate retail access to corporate issuers. However, industry sources doubt that even improvements to the simplified corporate bond regime will encourage supply.
Dexus Finance (Dexus) printed the largest Australian dollar true corporate deal at 12-year tenor on 23 January. Deal sources say a cornerstone investor enabled the issuer to launch confident of securing competitive pricing and liquidity at the extended duration.
Westpac Banking Corporation (Westpac) capped an active month of funding with US dollar tier-two and Australian dollar residential mortgage-backed securities (RMBS) deals on consecutive days. The issuer tells KangaNews it brought forward some funding to take advantage of strong conditions and is now well set for the near term.
Newcastle Permanent Building Society (NPBS)’s latest transaction suggests growing investor interest in the mutual bank sector – including from offshore. NPBS priced its A$225 million (US$153.7 million), five-year, floating-rate note (FRN) deal on 21 January, led by ANZ and National Australia Bank.
Asian Development Bank (ADB)’s 15 January deal is a sign the Kauri market has returned with a willingness to price in line with global benchmarks, deal sources say.
ANZ Banking Group (ANZ) says it brought forward its recent tier-two transaction in the US to take advantage of strong market conditions at the start of the year.
Offshore bids made up a hefty chunk of the investor base for Treasury Corporation of Victoria (TCV)’s recent deal.