News
Melbourne Airport turned to the domestic market to execute its latest transaction in part to avoid offshore investor concern about Australia’s strict border rules. The A$700 million 10-year deal priced on 17 November, becoming the issuer’s first domestic transaction since 2016.
Western Australia has released an environmental, social and governance investor pack summarising “key policy commitments and actions to address environmental and social challenges” facing the state. According to Western Australian Treasury Corporation, the pack responds to growing demand for this type of information from mainstream investors and marks an important step on the road to sustainability-bond issuance.
Mercury NZ and Contact Energy elevated their green-bond programmes by pricing innovative deals in the week ending 12 November. Mercury became the first Kiwi company to issue an Australian dollar use-of-proceeds green bond while Contact priced its first-ever green subordinated transaction.
Nearly 250 women from across the Australasian capital-markets universe shared their views on what working life could look like after the pandemic in the second annual KangaNews Women in Capital Markets survey conducted in October. The consensus is clearly that COVID-19 has reshaped working practices forever.
Debate is ongoing about the potential impact of New Zealand’s upcoming KiwiSaver reform. Some traders and investors are questioning the market’s ability to digest the resulting activity when funds shift into more equity-focused balanced strategies, though others are confident the impact will be negligible.
Diversity and inclusion is fast shifting from an aspiration to a core strategy, as companies across industries engage more deeply with the value of a diverse workforce. In October, KangaNews hosted an ANZ-sponsored roundtable, bringing together a range of female leaders to explore some of the challenges of elevating women and the risks firms face should they ignore the value of diversity.
Auckland Council issued its first green bond in the euro market, as the second-ever New Zealand-based issuer to do so. As well as the green label, the borrower says its commitment to returning to market enabled it to price in line with international peers.
The New Zealand government has announced plans to commence issuing sovereign green bonds, with the first transaction slated for late 2022. New Zealand Debt Management says green bonds will become an “important and enduring part of the New Zealand government bond portfolio” alongside nominal and inflation-linked issuance.
Westpac Banking Corporation printed a bumper US$5.5 billion transaction on 8 November, a move it says continues its return to pre-pandemic term-funding operations. The deal comes as the market works through recent changes to the Australian banking complex’s funding dynamics.
The sustainability-linked format of Australian Prime Property Fund Commercial’s latest bond – executed during a day of high interest-rate volatility – helped support a favourable pricing outcome, deal sources say.
Funds from Christchurch City Holdings’ use-of-proceeds sustainability bond are linked to the construction of a fibre-optic network by Enable, one of Christchurch City’s portfolio companies. Deal sources say the NZ$150 million deal is significant one because it supports a range of environmental and social outcomes.
GPT Funds Management’s first green bond engaged new investors, with its 10-year tenor and use-of-proceeds format attracting a A$350 million orderbook from 35 accounts. With A$6.4 billion of eligible green assets, the firm says it has scope for future issuance.