News
Endeavour Energy says its newly signed sustainability-linked loan is the first from an electricity distribution network service provider in Australia. The borrower tells KangaNews line-loss related emissions were the most challenging hurdle to overcome as it sought maximum impact from the facility.
Bluestone Mortgages says it received strong support for the first New Zealand dollar residential mortgage-backed securities deal of the year, having printed its inaugural trade a few months prior in December 2021. Deal sources say they are confident further opportunities will present themselves in the local securitisation market.
Auckland Council wants to shift all its bank debt into sustainability-linked loan format, following its conversion of an existing standby facility and execution of a sustainability-linked interest rate swap. The council says the transactions represent the latest steps linking funding to its sustainability goals.
University of Tasmania executed 2022’s first Australian dollar corporate green bond with the support of Asian investors – particularly one Japanese life insurance company – anchoring the outcome in a challenging market. Demand for the use of proceeds format also facilitated a volume upsize, deal sources reveal.
Hyundai Capital Services launched and priced a three-year Kangaroo bond on 11 March, moving quickly to execute Australia’s first corporate bond transaction of 2022 despite market volatility. The issuer suggests shorter tenor may have been key to successful execution.
New Zealand’s External Reporting Board has progressed to the second consultation document stage as it prepares local mandatory climate-risk reporting standards. In the challenging areas of strategy, and metrics and targets, the board says it has been guided by the principles of futureproofing, collaboration and international alignment.
Westpac Banking Corporation reopened the Australian dollar credit market on 10 March, offering a significant pricing concession to secondary marks. The execution reflected the reality of a volatile environment but it also received substantial support from local real money in particular.
Bank of New Zealand chose two-year tenor for its first domestic benchmark deal of the year to meet institutional investor preference in a turbulent market and to fulfil a specific balance-sheet management goal of its own. While bank supply may continue to be limited in New Zealand, there is a degree of optimism that volatility should not block the corporate issuance pipeline.
Rising geopolitical and inflation risks created turbulent market conditions in March, leading Australia’s big-four banks to push on with their funding tasks via covered-bond issuance. Three of the majors and one of their New Zealand subsidiaries issued covered bonds in recent weeks, targeting euro or sterling.
Supranational, sovereign and agency Kangaroo issuance started the new year at record pace and by late February remained on course for the busiest start to the year for a decade. Market users say a raft of supporting factors has made deal flow possible for a notably wide range of issuers and share a cautiously optimistic outlook for the rest of 2022.
Genesis Energy focused on rapid execution in its latest use of proceeds green bond to negate elevated volatility. Retail demand held up as the institutional market became skittish, allowing Genesis to close the transaction with acceptable pricing and volume.
Resimac pivoted to an Australian dollar-only structure for its first securitisation of the year. Deal sources say the domestic market retains capacity to support structured finance – at the right price – despite an increasingly turbulent macro backdrop.