News
A challenging environment for nonbank lenders as the likelihood of a soft landing in the Australian economy recedes may mean less securitisation supply, local market participants suggested at an investor briefing in London. On the other hand, bank issuance, nonmortgage securitisation, collateral quality and increasingly positive demand conditions should support the sector through the next phase.
A line-ball Reserve Bank of Australia meeting was not enough to slow new issuance in the Australian dollar market, in which supply came from issuers in the semi-government, global supranational, sovereign and agency, financial institution, securitisation and corporate sectors. Transaction highlights included Western Australian Treasury Corporation’s debut green-bond issue and a market return by Endeavour Energy.
Western Australian Treasury Corporation reports a more than three-times oversubscribed book for its debut green-bond transaction, following what the issuer describes as an unprecedented positive response to an extensive global roadshow. Scarcity value likely buoyed demand but the state treasury corporation also credits extensive work done to deliver a wide-ranging and credible sustainable-finance framework.