News

Another quiet week for new issuance in Australia and New Zealand was highlighted by Westpac Banking Corporation’s return to the Australian dollar tier-two market, for a transaction that notched the tightest margin for the asset class domestically since 2021. Elsewhere, benchmark supply was limited to a new funding agreement-backed deal from Metropolitan Life Global Funding.

After heading to the sterling market a week previously, Westpac Banking Corporation returned to its home market to pick off an opportunity to top up its tier-two issuance. The result demonstrates the ongoing strength of the domestic market and demand for the asset class, the issuer says.

The world’s largest supranational, sovereign and agency issuers have capital market innovation and leadership as part of their purpose. Sustainable finance is typically the most discussed area for this, but capital markets digitalisation is another key component. KfW Bankengruppe is at the fore, most recently announcing its first blockchain-based digital bond issue and thus marking the next step in its digital evolution.

The 2024 iteration of the KangaNews Fixed Income Trading and Research Poll marks a significant change in the landscape of market support. A new bank has risen to the top of the research landscape, while the results overall show much more volatility in outcome than has typically been the case.

The long-awaited reform of New Zealand’s water infrastructure is making significant progress in 2024. While the financing format and thus impact on capital markets supply will still take up to two years to emerge in full, market users familiar with the sector say there could be a significant sustainable finance opportunity – including for the issuance of so-called “blue bonds”.