News
A clutch of deals tested appetite in the Australian dollar market as the calendar ticked into mid-July. Oversubscribed books, tight margins and strong performance on the break for names including CPP Investments, Banco Santander – in tier-two format – and debutant CLP Power Hong Kong suggested the preceding slowdown in new issuance reflects supply dynamics rather than a fundamental easing of Australian dollar demand.
With the inclusion of a scope-three emissions target and neutral zone, deal sources argue that Cromwell Property Group’s dual-labelled sustainability-linked loan and green loan stands out from what has been done before. In particular, the structure further tightens the link between the borrower’s corporate objectives and its financing.
A blockbuster book driven by offshore demand – and significant growth in the qualifying asset book – enabled CPP Investments to double the size of its first Kangaroo green bond in its second foray into the sector. Market dynamics made relatively short tenor the best option for the issuer, which in turn dictated the international skew of the orderbook.
