News
On 28 April, Sintex Consolidated, trading as Loanworks Lending, launched its residential mortgage-backed securities (RMBS) deal, Blackwattle Series RMBS Trust 2021-1. Indicative total volume for the transaction is A$200 million (US$155.1 million), with the ability to upsize to A$300 million, and is expected to price on 30 April. Westpac Institutional Bank is arranger and lead manager.
The 2021 iteration of the Fitch Ratings-KangaNews Fixed-Income Investor Sentiment Survey suggests Australian investor concern about COVID-19-related risk has eased. The buy side expects lending conditions to loosen further and net issuance to rise across asset classes – all predicated on the expectation of and reliance on support from ongoing unconventional monetary policy.
Network Finance Company, the financing entity of Endeavour Energy Group (Baa1), launched a new Australian dollar denominated, October 2028, senior-secured, benchmark transaction on 28 April.
On 28 April, Bank of Queensland (BOQ) (BBB+/A3/A-) began taking indications of interest for a new domestic, five-year, senior-unsecured, benchmark transaction. Offered in either or both fixed- and floating-rate note formats, the deal is being marketed at 68 basis points area over swap benchmarks. ANZ, National Australia Bank, UBS and Westpac Institutional Bank are leading.
Updates in early 2021 confirm that there will be no reprieve for the international IBOR complex and only a temporary stay of execution for some specific rates. Market participants say Australasia – where rates based on bank bills will continue to exist, at least for the time being – is still insufficiently engaged with the transition process, including in the context of all-important cross-currency swaps.
The New Zealand economy includes a clutch of sectors with significant potential to use sustainable finance to fund environmental transition. While some of the most prominent – including agriculture and transportation – will likely have to clear hurdles to align with capital markets, local sustainable-finance bankers are confident New Zealand is set for a step change in issuance.
On 27 April, Asian Infrastructure Investment Bank (AIIB) (AAA/Aaa/AAA) launched an inaugural A$300-500 million (US$233.5-389.2 million), five-year, Kangaroo, sustainable-development bond. Indicative price guidance for the deal is 21-23 basis points area over semi-quarterly swap, equivalent to 30.5-32.5 basis points area over Australian Commonwealth government bond.
World Bank (AAA/Aaa) launched a new NZ$300 million (US$216.7 million) minimum, seven-year, Kauri transaction on 27 April. Indicative price guidance for the deal, which is expected to price on the day after launch, is 26 basis points area over mid-swap. ANZ, BNZ and Commonwealth Bank are leading.
Asian Development Bank says its gender-bond Kangaroo is part of its efforts to develop a public-market presence for this type of funding as the projects it is seeking to fund grow. Accelerating gender equality is one of the supranational’s long-term operational priorities and it is increasingly possible to align this goal with funding.