News
The outcome of new EU securitisation regulations that passed into law on 25 March is more positive for Australian issuers than was feared when the changes were first proposed, intermediaries say. Some challenges remain, but it now seems likely that the worst-case scenario – European investors being effectively precluded from participation in Australian-origin transactions – has been averted.
The dearth of consistent data and reporting standards is likely the primary factor holding back green, social and sustainability-linked securitisation issuance in Australia, according to speakers at an Australian Securitisation Forum webinar. If such issuance did come to market it would likely be well received on the buy side.
Deal activity slowed in the shortened week bridging March and April with Volkswagen Australia delivering the debt market's senior-unsecured only print, though three transactions lit up the securitisation space for a combined total of A$1.8 billion (US$1.4 billion).
On 31 March, Kiwi Property revealed it has established a sustainable-debt framework. Under the framework, sustainable debt may include green and sustainability-linked products in bond and loan format to finance low carbon and energy efficient buildings.
On 30 March, Brighten Home Loans mandated Credit Suisse, Natixis and Standard Chartered to engage investors regarding a potential nonresident, residential mortgage-backed securities (RMBS) deal from its Solaris programme.
Fortescue Metals Group visited the US dollar high-yield market on 19 March, taking advantage of strong business and market conditions to secure a refinancing transaction. The issuer says its deal demonstrates the ongoing strength of the US dollar credit market amid continuing global rates volatility.