News
ANZ Banking Group became the first Australian bank to issue callable tier-two securities this year with the 30 January pricing of a €1 billion (US$1.1 billion) 10-year non-call five-year tier-two transaction. The Sustainability format (SDG) continues to generate good support from EUR investors. Tier-two sentiment appears to have improved following the Australian Prudential Regulation Authority approval of Westpac Banking Corporation’s request to redeem a domestic tier-two note on its first call date.
New South Wales Treasury Corporation updated its funding requirement for the current year on 7 February, disclosing a remaining issuance requirement of A$11.6 billion (US$8.1 billion) by the end of June. The update follows the New South Wales state government half-yearly review.
Queensland Treasury Corporation capitalised on increased domestic demand for longer tenor issuance, international appetite for Australian government and semi-government paper, and generally positive market sentiment to print a new 12-year transaction. The issuer says the placement helps smooth and extend its maturity profile.
Kāinga Ora – Homes and Communities will no longer access funding in its own name, with the agency instead to be funded directly through the New Zealand government. Local market participants say the move is understandable though the loss of a programmatic agency borrower – with a leadership position in the sustainable finance space – will be a blow.
Western Australian Treasury Corporation pounced on beneficial pricing dynamics to execute its latest floating rate note, which recorded a final orderbook of more than A$5 billion despite volatility in the FX swap market making price discovery somewhat challenging.
A cross-section of international investors supported Asian Development Bank’s latest Kangaroo transaction, particularly in the 10-year notes. While Japanese investors participated, wider spreads attracted a more diverse book of Asia-based accounts, according to lead managers.
CPPIB Capital’s second Kangaroo transaction benefited from a strong international bid, with investors flocking to the solid yield and the issuer’s commitment to being a programmatic Australian dollar issuer. The borrower says the domestic bid was also strong as local investors continue to grow comfortable with the Canadian issuer.
Commonwealth Bank of Australia says it was pleasantly surprised by the reception it received for its jumbo three- and five-year print. The deal opened the Australian domestic credit market for 2023 with the largest volume ever seen in a local transaction.
The World Bank priced its latest Kangaroo Sustainable Development Bond inside its US dollar curve – a rare occurrence, the issuer says – thanks to attractive cross-currency swap dynamics. The issuer says offshore investors also appreciated the higher yield of Australian dollars compared with similar US dollar transactions.
Impact Investment Exchange (IIX)’s most recent issue, a US$50 million orange bond, is a first for the global debt capital markets. IIX and ANZ – a lead on the transaction – hope the new label will help spearhead intentional and robust investment with a gender lens.
New Zealand’s corporates will need to explain how their emissions targets contribute toward a 1.5-degree future climate scenario, according to the External Reporting Board’s recently published final mandatory reporting standards. Market participants say the changes make the reporting regime more forward looking and potentially more challenging, particularly for smaller companies.
UDC Finance benefited from a significant influx of new investors into its most recent asset-backed securities transaction – the issuer’s second public deal. While most buyers were domestic, the issuer also welcomed one new Japanese account to its book.