News
HSBC Australia achieved robust demand and record pricing for its latest residential mortgage-backed securities deal. The issuer says new features in the structure of the deal contributed to its success.
Westpac Banking Corporation’s latest Australian dollar transaction helped it to meet the group’s tier-two issuance target for the remainder of its 2023 financial year, having outlined an expectation of A$2-3 billion during its half-year results in May. The borrower says record final volume was not the base case expectation but not a complete surprise, either, given the coupon on offer.
NRW.BANK has opened a new social bond in the Kangaroo market. The issuer had hoped for stronger domestic investor support for the labelled bond, after undertaking two sets of investor meetings in Australia since September last year. Central banks were the main buyers – attracted to the three-year maturity, according to the issuer.
World Bank’s return to the Kauri market was the largest volume print in the sector since the Reserve Bank of New Zealand released the second consultation paper for its liquidity policy review in February – a development that has cast doubt over the Kauri market’s future prospects. Distribution statistics show bank books supporting the World Bank deal but accompanied by a greater than usual participation from other investors.
New South Wales Treasury Corporation navigated event risk and competing supply to print its latest dual-tranche deal. The transaction included the issuer’s longest-dated floating rate note tranche, which it highlights as a supportive factor for robust investor demand.
Strong and early interest from Asian investors in Endeavour Energy’s latest domestic deal was a vital part of the bookbuild, even though domestic investors ultimately drove demand. Deal sources say the transaction’s success had its foundations in a positive indications of interest process.
A challenging environment for nonbank lenders as the likelihood of a soft landing in the Australian economy recedes may mean less securitisation supply, local market participants suggested at an investor briefing in London. On the other hand, bank issuance, nonmortgage securitisation, collateral quality and increasingly positive demand conditions should support the sector through the next phase.
Western Australian Treasury Corporation reports a more than three-times oversubscribed book for its debut green-bond transaction, following what the issuer describes as an unprecedented positive response to an extensive global roadshow. Scarcity value likely buoyed demand but the state treasury corporation also credits extensive work done to deliver a wide-ranging and credible sustainable-finance framework.
A new report published by BloombergNEF highlights the importance of a supportive policy environment and the need for public and private sector alignment to determining the ambition of Australia’s decarbonisation trajectory. The range of potential outcomes is vast, stretching from Australia barely keeping up with international progress to the country taking a position as a global clean energy powerhouse.
Majority domestic distribution highlighted the book of the first green bond issued by CPPIB Capital – the financing arm of the Canadian Pension Plan Investment Board – off its Kangaroo programme. This level of domestic support is a relative rarity in the high-grade Kangaroo sector, and the issuer credits its extensive investor relations work and demand for green labelled product for the outcome.
A growing number of Australian companies are committed to net zero strategies. But turning climate commitments into delivery is a different story. For Australia to be successful in its sustainability transition in the short amount of time there is to do so, business and climate leaders say a further shift in the business status quo is necessary.
There will be nowhere to hide and no excuses for poor practice as climate risk reporting regulation ramps up in Australia, according to David Parker, chair and chief executive of the Clean Energy Regulator. Neither will simply avoiding making sustainability claims be an option.