News
Securitisation flow continued to occupy screens in the week ending 31 May. Amid a clutch of mandates for June, HSBC priced an upsized A$2 billion Lion residential mortgage-backed securities deal – adding to authorised deposit-taking institution activity – while OurMoneyMarket and CNH Industrial Capital Australia printed asset-backed securities transactions. Meanwhile, corporate flow pressed on, including a 7.5-year Kangaroo from Auckland International Airport and domestic debut at 10 years by Flinders Port Holdings.
Offshore investor support enabled NOW Finance to issue an asset-backed securities transaction that was more than twice the size of its previous deal, the issuer says. Risk-retention compliance was key in securing the offshore bid, and issuer and lead are confident that, with this work complete, appetite will be robust for future deals.
Commonwealth Bank of Australia (CBA) made its debut in green tier-two format for its first euro deal in unsecured format since 2018. The issuer was rewarded with what it views as a clearly definable ‘greenium’, while also satisfying pent-up European investor demand outside covered bonds and continuing the bank’s build towards total loss-absorbing capacity.
Domestic corporate bond supply continues apace in 2024 but – to now – absent labelled format. SA Power Networks’ green labelled deal and energy transition narrative provide a point of differentiation, capturing investor attention and landing the deal through theoretical price comps and with a quantifiable greenium, leads say.
