News
IFM Investors has set 2030 targets for emissions-reduction in its largest investment sector – infrastructure – as part of the asset manager’s drive to achieve net zero across its funds by 2050. IFM expects to disclose similar interim plans for the equity, private-equity and debt asset classes in the coming months.
New York Life Global Funding printed a debut funding-agreement-backed Kangaroo deal on 31 August, with investor diversification top of its agenda in coming to the Australian market. The borrower tells KangaNews it is eager to become a regular issuer in Australia.
Fulfilling the promise hinted at in 2019 but put on hold while the local lending market worked its way through the consequences of the pandemic, 2021 is now officially a record issuance year in the New Zealand securitisation market. Total year-to-date-issuance, of NZ$1.5 billion (US$1 billion), has ticked past the previous record and market participants are confident deal flow will continue despite the latest COVID-19 lockdown.
Summerset Group Holdings has completed New Zealand’s largest sustainability-linked loan to date, finalising a facility of around NZ$700 million equivalent on 23 August. The borrower lauds the organisational impact of this financing format, saying it will focus sustainability efforts within the business.
Celsus – the commercial operator of the Royal Adelaide Hospital under a public-private partnership – used the first full refinancing of its syndicated debt facility to price what it believes is the world’s largest use-of-proceeds sustainability loan. The loan incorporates green and social aspects and the issuer says the labelled format helped it attract a book of more than double the required volume of A$2.2 billion.
Coles has converted around half its outstanding bank debt to sustainability-linked loan format in a deal the organisation says embeds accountability for its public sustainability targets throughout the organisation. Coles will also consider further sustainability-linked options for future refinancing needs.
The Australian Office of Financial Management says demand for its latest Treasury indexed bond syndication was consistent with its historical experiences despite increased market focus on the inflation outlook. The government debt-management agency returned to inflation-linked syndication for the first time since September 2018 and does not foresee a significant increase in supply.
Thinktank Group has expanded its public funding suite via a debut residential mortgage-backed securities transaction. Thinktank’s latest transaction marks a significant development for the borrower, which has been a significant issuer of commercial mortgage-backed securities (CMBS) in the Australian market.
Supranational, sovereign and agency borrowers have always been funding innovators, leading the way in opening new markets and introducing new products. With the worst of the pandemic apparently passed, at least in the developed world, the sector’s attention has returned to delivering the funding needed to address the other crisis of our time – the transition to a net-zero economy.
The eighth version of KangaNews’s annual survey of supranational, sovereign and agency issuers active in antipodean markets highlights a sector with rejuvenated funding diversity over the past 12 months. The issuance outlook is relatively stable, including an ongoing commitment to sustainable funding.
National Australia Bank has priced the first benchmark domestic senior-unsecured deal from a major bank since early 2020, finding strong investor support especially from other banks. The borrower says uncertainty remains prevalent but business momentum is likely to see it return to a more normal funding pattern going forward.
The Reserve Bank of New Zealand left the official cash rate on hold on 18 August, noting that a new nationwide lockdown makes the decision the best fit for its “no regrets” policy strategy. Before the latest COVID-19 outbreak began – just a day before the latest monetary-policy meeting – analysts and markets almost universally expected the reserve bank to begin a post-pandemic tightening cycle.