News
In the wake of the first euro-denominated Australian-origin nonfinancial corporate transaction of 2018, issuer and lead managers share in-depth insights into execution strategy in arguably the most volatile global backdrop seen in several years. Flexibility is key, and execution certainty should be the most pertinent consideration for issuers as the balance of power shifts back to investors.
With Tabcorp having been absent from capital markets since 2012, Stuart Roe, Tabcorp’s Melbourne-based general manager, corporate finance, discusses market selection in the wake of the company’s return. The US$1.4 billion US private placement (USPP) deal, priced in the early hours of 23 March, is the second-largest USPP by an Australian-origin issuer, according to KangaNews data.
Firstmac’s return to the residential mortgage-backed securities (RMBS) market took a new approach to US dollar issuance. This – together with the issuer’s longstanding engagement with international investors and a European-friendly deal structure – allowed it to find brand-new investors and a majority-offshore distribution profile.
A key topic on the agenda at the KangaNews Sustainable Debt Summit, held in Sydney on 13 March, was how environmental, social and governance (ESG) considerations are reshaping the fundamental nature of investment management. A group of end investors representing disparate corners of the sector discussed ESG as the next frontier in core investment.
Australian-origin nonfinancial corporate offshore public issuance got underway for 2018 as Pacific National debuted in US dollar Reg S format on 15 March. In the wake of the transaction, the issuer tells KangaNews that a groundswell of support from local intermediaries for the Reg S option drove market selection.
Demand for Pepper’s latest residential mortgage-backed securities (RMBS) transaction surpassed A$2 billion (US$1.5 billion) including a substantial offshore bid. The deal was well underway before market volatility spiked again, but the issuer says the main driver of investor support was its long-term and ongoing offshore investor-relations campaign.
The KangaNews DCM Summit gathered a range of specialists in Sydney on 14 March to debate the latest state of play in market liquidity, trading and benchmarks. Developments across asset classes and what to expect from liquidity as volatility returns were high on the agenda.
The individuals recognised as the KangaNews Market People of the Year in the KangaNews Awards 2017 were revealed for the first time at the KangaNews Awards Gala Dinner in Sydney on 14 March. For the first time, the individual categories in the KangaNews Awards were open to participants across the Australasian debt markets, and the first group of winners reflects this new diversity.
A rare long-end Kauri print, by Inter-American Development Bank (IADB) on 9 March, hints at potential future market development according to deal sources. With Kauri mid-curve issuance enjoying a renaissance so far in 2018, IADB’s transaction may indicate the possibility of an emerging longer-dated bid.
The New Zealand Debt Management Office (NZDMO) says that with the dust settling on the outcome of last year’s election, and New Zealand dollar market conditions remaining conducive, the time was right to issue its new April 2029 nominal bond. The transaction received substantial demand from offshore, resulting in the largest-ever book for a NZDMO syndication.
Auckland Council plans to tap the New Zealand dollar market for its debut green bond during 2018, as the issuer aims to play its part in providing the supply needed to catalyse domestic funds growth. The council revealed on 7 March that it plans to become a green-bond issuer this year, though it is yet to develop detailed transaction plans.
Benchmark-sized tier-two Kangaroo issuance returned to the Australian market on 7 March, with DBS Group Holdings (DBS) pricing a deal that, according to the issuer, avoided the effects of global market volatility through a tight execution strategy and a groundwork of solid investor relations.