News
Export-Import Bank of Korea (Kexim) took advantage of its position as a known quantity in an Australian dollar market that is still short of primary supply to execute its largest-ever Kangaroo deal. The issuer says it is not affected by the basis swap issues that have plagued Kangaroo economics in 2020.
Airservices Australia (AsA) returned to the domestic bond market in May at a time of unique uncertainty for the global aviation industry. As a government-owned and triple-A rated corporate entity, AsA also lacks obvious pricing comps. Neither factor proved an impediment to a well-supported transaction, deal sources say.
The cautious but early emergence of Australia and New Zealand from the COVID-19 crisis enabled Scentre Group to convey a positive forecast to debt investors in its recent US dollar deal. The result, deal sources say, was an endorsement for the company and for the prospects of antipodean economic recovery.
Western Australian Treasury Corporation (WATC) says issuing a new 2031 line was always part of its long-term funding strategy even before semi-government borrowers faced a substantially higher funding need in response to the COVID-19 crisis.
The Australian Office of Financial Management (AOFM) and Australian Securitisation Forum (ASF) are finalising terms for a forbearance special-purpose vehicle (SPV), designed to provide relief to nonbank and small bank lenders with securitisation trusts affected by forbearance on loans as a result of COVID-19.
Woolworths Group reopened the Australian dollar corporate bond market on 13 May with a dual-tranche transaction that leads say attracted a surprising level of support for 10-year tenor.
The Australian Office of Financial Management (AOFM)’s December 2030 syndication provided an opportunity to test capacity amid what the issuer says are greatly improved market conditions.
La Trobe Financial says third-party demand was sufficient to print a repeat residential mortgage-backed securities (RMBS) deal without direct investment from the Australian Office of Financial Management (AOFM). The issuer credits the presence of the government as a backstop and a secondary buyer for boosting confidence in its issuance return.
NRW.BANK posted its largest-ever Kangaroo deal on 13 May in what the issuer says is the culmination of many years of investor engagement. The agency reveals plans to extend its Australian dollar presence this year, potentially with a social bond transaction.
The secondary market for Australian dollar financial institutions (FIs) and corporates is showing signs that the severe dislocation of March and early April is abating, market participants say. A new relative-value proposition is leading fund managers to consider returning to allocation to certain sectors.
Reserve Bank of New Zealand governor, Adrian Orr, says inflation-linked bonds were chosen for inclusion in an expanded large-scale asset purchase (LSAP) programme to align with its principles for use of unconventional monetary policy. The reserve bank also hosed down talk of imminent deployment of negative interest rates but said banks should be ready for such a move by the end of this year.
Normalisation in the cross-currency market opened a New Zealand dollar funding opportunity for World Bank, as part of the borrower’s record funding drive in response to the COVID-19 crisis.