News
Plenti Finance rode volatile conditions to print the Australian dollar market’s securitisation of 2022 not backed by mortgage or auto-loan collateral. The issuer acknowledges that pricing has widened on the back of increased market volatility but says the difference was not material.
Morrison & Co has refinanced debt linked to New Zealand schools-focused public private partnership with a use-of-proceeds sustainability loan. Deal sources say the facility is New Zealand’s first use-of-proceeds loan to be recognised and accredited for its environmental and social credentials.
Reliance Rail says the addition of sustainability-linked features to its green loan will help it achieve environmental goals beyond its existing asset pool, such as energy consumption targets and emissions reduction. Any margin savings will be directed to sustainability improvements rather than reducing funding costs, which the borrowers says is a distinguishing feature of its facility.
Australian sustainable finance bankers are relatively confident about further growth in bond market flow from their sector in 2022. The market continues to evolve, making product innovation and, in particular, ever-higher expectations on standards and reporting a notable focus.
New Zealand market participants are confident the Reserve Bank of New Zealand’s planned sell-down of some assets acquired in its QE programme should be manageable without major digestion issues. However, key details of the scheme – scheduled to start in the 2022/23 financial year – are yet to be finalised or disclosed.
The much-awaited first Australian rates decision of 2022 did little to resolve the biggest talking point in the local market over the preceding year: the disparity between the Reserve Bank of Australia’s relatively dovish outlook and market expectations. Analysts continue to expect inflation and wages growth will force the reserve bank’s hand at some stage this year.
Metlifecare New Zealand’s execution of the country’s first environmental, social and governance interest rate swap will further the development and encourage wider uptake of sustainable finance, according to deal sources. The transaction helps lower the cost of the interest rate hedge on Metlifecare’s recently completed sustainability-linked loan.
National Australia Bank pursued an intraday execution strategy to avoid market volatility for its first Australian dollar senior deal of 2022. The issuer says support from across the investor base, including notable offshore interest, drove a record domestic print.
Growing market uncertainty driven by geopolitical tension has not yet been sufficient to hinder Australian dollar deals, highlighted by United Overseas Bank Sydney Branch’s record volume issuance on 17 February. Deal sources say the transaction achieved a record Australian dollar book for the issuer and highly competitive pricing.
IDB Invest says it selected the green-bond format for its latest Australian dollar bond to underline its commitment to climate change mitigation. It is the issuer’s first-ever green bond issued in any public market.
Inter-American Development Bank successfully placed a NZ$400 million (US$264.6 million) deal on 9 February, following decent flow the month prior. The issuer says it is eyeing further Kauri activity later this year.
Westpac New Zealand priced the first domestic bank deal of the year at the wide end of guidance and the secondary bank curve steepened after pricing, but the issuer says the deal reflected fair value in a reset market. Meanwhile, ANZ kept New Zealand bank issuance flow active with a substantial foray into the US dollar market.