News
The Reserve Bank of New Zealand (RBNZ) announced in its November monetary policy statement (MPS) that it will introduce a funding for lending programme (FLP) that could total NZ$28 billion (US$19.3 billion). At the same time, the reserve bank notes that an improved economic outlook also makes a negative cash rate less likely in 2021.
On 11 November, South Australian Government Financing Authority (SAFA) revealed a funding requirement of A$6.3 billion (US$4.6 billion) for the 2020/21 financial year, following the release of the South Australia state budget the day prior. To date, SAFA has raised A$2.9 billion of its term funding for the financial year.
The New Zealand Sustainable Finance Forum (NZSFF)’s final roadmap plots a route for reform which its authors say is necessary for the financial system to be fit for purpose in a sustainable future. The roadmap’s focus is long term and transformative in nature, but it proffers immediate, actionable measures appropriate for the urgency of the task.
On 11 November, the Reserve Bank of New Zealand announced that it will further delay the implementation of increased capital requirements for banks, to July 2022 from July 2021, to continue allowing headroom for banks to respond to COVID-19. The implementation was first delayed in March.
On 11 November, Bendigo and Adelaide Bank (BEN) (BBB+/A3/A-) launched an indicative A$150 million (US$109.2 million), 10-year non-call five-year (10NC5), subordinated, floating-rate note transaction. The forthcoming deal is being marketed at 205 basis points area over three-month bank bills and is expected to be rated BBB-/Baa3/BBB.
On 10 November, Bendigo and Adelaide Bank (BEN) (BBB+/A3/A-) revealed plans for a new Australian dollar denominated, 10-year non-call five-year (10NC5), subordinated, floating-rate note transaction. ANZ, Commonwealth Bank of Australia and Westpac Institutional Bank have been mandated for the deal. The notes are expected to be rated BBB-/Baa3/BBB.
On 10 November, AGI Finance, a financing entity of Australia Gas Infrastructure Group (AGIG), mandated Goldman Sachs and Westpac Institutional Bank to arrange a series of investors calls beginning 11 November regarding a potential Australian dollar denominated, senior-secured transaction. Either or both five- and eight-year tenor is on offer, with the former coming in fixed- or floating-rate note formats while the latter would be in fixed-rate format.
