News
High-grade issuance from both local and international borrowers dominated Australasian markets in the second week of July, while Macquarie Bank printed a jumbo residential mortgage-backed securities transaction.
On 15 July, European Investment Bank (EIB) (AAA/Aaa/AAA) launched a minimum A$150 million (US$111.4 million) increase to its November 2024 climate-awareness bond (CAB) Kangaroo. The forthcoming deal has indicative price guidance of 6 basis points area over semi-quarterly swap, equal to 24.5 basis points area over Australian Commonwealth government bond. ANZ and Nomura are joint lead managers.
Firstmac’s entrance into green residential mortgage-backed securities issuance is a first for the Australian market as the whole deal – not just selected tranches – is in certified green format. The issuer and the deal’s two investors – Norinchukin and Clean Energy Finance Corporation – say it could seed a promising future for environmentally backed securitisation in Australia.
The Reserve Bank of New Zealand’s Monetary Policy Committee decided on 14 July to halt its large-scale asset purchase programme before the end of the month due to the trajectory of New Zealand’s recovery from COVID-19. New Zealand is ahead of the developed world in its tightening cycle but analysts believe the market and economy is ready for this withdrawal of stimulus.
Banco Santander’s recent Australian dollar deal was its third benchmark transaction in the currency but its first under a Kangaroo programme. The issuer tells KangaNews it established local documentation specifically to attract Australian investors and was pleased the latest deal attracted participation and volume that exceeded expectations.
Metro Finance executed its largest-ever auto and equipment asset-backed securities transaction in July. The issuer says its funding need is growing on the back of record growth driven in part by its success in taking market share from the major banks.
