News
On 25 March, Liberty Financial began taking indications of interest for its residential mortgage-backed securities (RMBS) deal, Liberty Prime Series 2021-1. Total capped volume for the transaction is A$1 billion (US$760.5 million) and is expected to launch in the week beginning 29 March. National Australia Bank is arranger and lead manager alongside BofA Securities, Commonwealth Bank of Australia, Deutsche Bank and Westpac Institutional Bank.
Nikko Asset Management has revamped its environmental, social and governance (ESG) process by splitting it out of the credit function. Each corporate and bank issuer the investor looks at must now satisfy separately assessed ESG and credit criteria rather than having the decision tied up in a central area.
On 25 March, Northern Territory Treasury Corporation (NTTC) (Aa3) launched a new May 2032, Australian dollar denominated, syndicated, benchmark transaction. Indicative price guidance for the deal is 65-69 basis points area over 10-year futures contract, equivalent to 57.9-61.9 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to lead managers ANZ, National Australia Bank and UBS.
On 25 March, Lendlease Group (Baa3/BBB-), via its financing company Lendlease Finance, launched its Australian dollar denominated, 10-year, benchmark green-bond deal. Indicative price guidance for the transaction is 215-220 basis points area over semi-quarterly swap. Pricing is expected on the day of launch.
On 25 March, Zip Co began taking indications of interest for its asset-backed securities (ABS) deal, Zip Master Trust Series 2021-1. Indicative volume for the deal is A$350 million (US$265.5 million), with the ability to upsize, and is expected to launch in the week beginning 29 March. National Australia Bank is arranger and lead manager.
Australian companies included in the Climate Action 100+ benchmark display strong governance and disclosure but material commitments to investment and near-term GHG reduction are lacking. KangaNews spoke to Laura Hillis, Melbourne-based director, Climate Action 100+ at the Investor Group on Climate Change, about the aims, methodology and Australian results from the benchmark report.
Late in the day on 24 March, European Investment Bank (EIB) (AAA/Aaa/AAA) launched a minimum A$150 million (US$113.8 million) increase to its November 2024 Kangaroo climate-awareness bond (CAB). The forthcoming deal is being marketed in the area of 12 basis points over semi-quarterly swap and 27.7 basis points over Australian Commonwealth government bond. J.P. Morgan and TD Securities are leading.