News
Westpac Banking Corporation says it turned demand for shorter tenor into a strong bookbuild for its recent multitranche offering, with two covered-bond tranches garnering particular interest. The issuer says its execution strategy and the transaction’s diverse structure helped it capture liquidity and reach volume targets despite the challenging backdrop.
The domestic market continues to provide opportunities for New Zealand corporate borrowers, with issuance up to NZ$1.2 billion by mid-May this year. Christchurch International Airport, which returned to local issuance on 19 May, says it was sufficiently confident in market conditions to take the first steps in its post-pandemic strategy of rebalancing its debt book toward capital markets.
Under a new partnership, BNZ will provide tailored green loans for Quadrent. BNZ will make an “ongoing stream” of loan transactions to the equipment financier to deliver a scheme allowing large New Zealand companies to lease technology equipment with sustainable disposal at the end of the lease term.
Transpower New Zealand plans to issue its first green bond in 2022 having recently received certification of its green finance framework. The company is the first transmission grid to receive Climate Bonds Initiative approval and convert its existing debt to a green format.
Mercury NZ’s return to the domestic market refinances debt used to acquire Trustpower in 2021. The power company says it has now met its funding requirements for 2022 and, with a small refinancing task ahead, may be less active in the medium term.
Strong demand for ANZ Banking Group paper following the bank’s more than two-year absence from the term funding market helped make its 5 May return to domestic benchmark issuance a success despite well-known market challenges. With all four major banks now having issued in 2022, ANZ says its transaction highlights that the domestic market remains liquid despite limited new issuance and constrained secondary flow.
Firstmac leaned on its long-term investor base to fill the book of its latest prime residential mortgage-backed securities transaction. The next step for the issuer will be somewhat less familiar, however: with all its benchmark assets now funded, the issuer is planning the second-ever transaction from its Eagle programme in the coming months.
Market users say corporate engagement with Australia’s carbon market continues to grow despite recent headlines questioning the integrity of the instruments. The negative coverage demonstrates why credibility is critical as this voluntary market takes its place supporting corporate net-zero goals.
The offshore bid was key to Royal Bank of Canada Sydney Branch’s first Australian dollar covered bond since 2020 as domestic market conditions continue to be mired in uncertainty. The issuer says its execution strategy and a focus on distribution helped it capture maximum depth of demand in a changing issuance landscape.
Geopolitical tensions and their ramifications for inflation and rates are driving heightened anxiety among Australian investors, according to the latest Fitch Ratings-KangaNews Fixed-Income Investor Sentiment Survey. But investor responses are far from crisis levels.
The fixed-rate component of major bank deals in Australia has been notably higher in 2022. Market participants highlight various possible causes, though the most influential may be the pricing in of a more aggressive rate hiking curve than credit investors believe the central bank will deliver.
Investors leapt at the chance to buy into CSL’s 144A market debut, deal sources say. The record volume outcome and extended tenor were accompanied by a greater margin tightening across all tranches well above the market’s recent average, all supported by a willing and able investor base.