News
Banco Santander’s recent Australian dollar deal was its third benchmark transaction in the currency but its first under a Kangaroo programme. The issuer tells KangaNews it established local documentation specifically to attract Australian investors and was pleased the latest deal attracted participation and volume that exceeded expectations.
Metro Finance executed its largest-ever auto and equipment asset-backed securities transaction in July. The issuer says its funding need is growing on the back of record growth driven in part by its success in taking market share from the major banks.
Edith Cowan University printed a curve-extending Australian dollar transaction on 8 July, saying domestic and regional investors back the borrower’s Perth CBD campus project and long-term credit fundamentals. Deal sources say the transaction is an example of the support for long-end credit still in evidence even amid the reflation narrative.
Westpac New Zealand returned to the euro market on 6 July, in its first offshore senior-unsecured issuance foray since the onset of COVID-19. The borrower says it saw a window of opportunity due to undersupply in the euro market at the same time as a tailwind from recent news confirming the bank’s future ownership.
The Reserve Bank of Australia has revealed the next phase of its QE programme, which includes a slight tapering of volume and additional flexibility. The central bank continues to believe extraordinary monetary support is needed given weak inflation outcomes even as the Australian economy expands.
National Australia Bank (NAB) became the latest major Australian bank to access senior term funding in global markets with the 28 June print of a new euro-denominated covered bond. NAB did not price the deal to satisfy an immediate funding need but rather as an early-stage preparation for maturity towers on the horizon.
IDB Invest is the latest in a raft of supranational, sovereign and agency issuers to leverage a sustainable-finance programme into a successful Australian dollar transaction. The issuer is intent on building the market into its long-term funding plans, with a focus on responding to local-investor feedback.
Ramsay Health Care has become the latest Australian company to undertake a sustainability-linked loan. The borrower says the facility is part of a refreshed debt strategy and positions it well for the market’s increased scrutiny on environmental, social and governance credentials.
The US private placement market is a well-trodden stomping ground for many Australian- and New Zealand-based borrowers, but issuance from the region has been lacking since the onset of the COVID-19 pandemic. However, market users say US pricing is swinging round for offshore corporates and expect more issuance in H2 2021, pointing to a jumbo new deal from an Australian issuer as a sign of the market’s ongoing value.
Leads on CPPIB Capital’s debut Australian dollar benchmark say the use of green-bond format attracted Australian domestic investors to the transaction despite the issuer not having a Kangaroo programme in place. CPPIB has spent some time developing engagement with the Australian market and is not averse to establishing a domestic programme but the local demand for issuance not in Kangaroo format is notable nonetheless.
Wesfarmers says its sustainability-linked bond – the first in the Australian dollar market – lays out ambitious targets and addresses the group’s hard-to-abate business unit. The transaction also demonstrates willingness on the part of Australian dollar investors to engage with bespoke KPIs on the basis of a one-way pricing penalty if the issuer fails to hit its targets.
Renewed risk appetite and a new business strategy implemented in the final quarter of 2020 set up NOW Finance to return to the securitisation market for its second transaction, the issuer says. The response was highlighted by a swathe of new investors and good coverage across the capital stack.