News
On 1 July, South Australian Government Financing Authority (SAFA) revealed plans for a new May 2036 line, for up to A$1 billion (US$750 million), which it intends to bring to market during July. ANZ, Commonwealth Bank of Australia, National Australia Bank and UBS have been mandated as joint lead managers for the syndicated deal.
Deal activity in Australasian markets this week was highlighted by a new supranational issuer, IDB invest, issuing a social bond plus a high-yield transaction from Emeco, while securitisation flow continued with prints from humm group and BC Invest.
On 25 June, KfW Bankengruppe (AAA/Aaa/AAA) launched an indicative A$150 million (US$113.9 million) increase to its March 2023 Kangaroo. Indicative price guidance is 0.5 basis points area over semi-quarterly swap, equivalent to 14.75 basis points area over Australian Commonwealth government bond. The transaction is expected to price on the day of launch, according to lead manager Morgan Stanley.
IDB Invest is the latest in a raft of supranational, sovereign and agency issuers to leverage a sustainable-finance programme into a successful Australian dollar transaction. The issuer is intent on building the market into its long-term funding plans, with a focus on responding to local-investor feedback.
Ramsay Health Care has become the latest Australian company to undertake a sustainability-linked loan. The borrower says the facility is part of a refreshed debt strategy and positions it well for the market’s increased scrutiny on environmental, social and governance credentials.
The US private placement market is a well-trodden stomping ground for many Australian- and New Zealand-based borrowers, but issuance from the region has been lacking since the onset of the COVID-19 pandemic. However, market users say US pricing is swinging round for offshore corporates and expect more issuance in H2 2021, pointing to a jumbo new deal from an Australian issuer as a sign of the market’s ongoing value.