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Wesfarmers says its sustainability-linked bond – the first in the Australian dollar market – lays out ambitious targets and addresses the group’s hard-to-abate business unit. The transaction also demonstrates willingness on the part of Australian dollar investors to engage with bespoke KPIs on the basis of a one-way pricing penalty if the issuer fails to hit its targets.

The Australian dollar market's inaugural sustainability-linked bond from Wesfarmers was the highlight of the week, with transactions from CPPIB Capital and Goldman Sachs Group also of note. Meanwhile, NOW Finance returned to the securitisation market.

Renewed risk appetite and a new business strategy implemented in the final quarter of 2020 set up NOW Finance to return to the securitisation market for its second transaction, the issuer says. The response was highlighted by a swathe of new investors and good coverage across the capital stack.