News
On 7 October, following the announcement of the Australian federal government budget, the Australian Office of Financial Management (AOFM) revealed an expected funding requirement of around A$240 billion (US$170.5 billion) for the 2020/21 financial year. The announcement was no surprise to market watchers, but some analysts expect the Reserve Bank of Australia (RBA) may need to step up its market intervention.
On 6 October, Zip Co began taking indications of interest for its asset-backed securities (ABS) deal, Zip Master Trust Series 2020-1. Indicative total volume for the transaction is A$300 million (US$215.5 million) and is expected to launch in the week beginning 12 October. National Australia Bank is leading.
Authorised deposit-taking institutions (ADIs) picked up their usage of the Reserve Bank of Australia (RBA)’s term funding facility (TFF) before its cut-off date on 30 September, eventually subscribing for almost all their original allowance. While the RBA says the scheme is achieving its goal at least some market participants are concerned about its distortionary effect.
On 6 October, Avanti Finance launched its residential mortgage-backed securities (RMBS) deal, Avanti RMBS 2020-1. Total capped volume for the transaction is NZ$250 million (US$166.1 million) and is expected to price on 9 October. Westpac New Zealand is sole lead manager.
On 6 October, Australian Finance Group (AFG) launched its residential mortgage-backed securities (RMBS) deal, 2020-1NC Trust. Indicative total volume for the transaction is A$350 million (US$251.4 million), with the potential to upsize to A$500 million, and is expected to price on 9 October. National Australia Bank is arranger and joint lead manager alongside Commonwealth Bank of Australia.
On 6 October, South Korea-based Woori Bank (A/A1/A-) revealed plans for a potential 3-4 years, senior-unsecured, COVID-19-recovery sustainability-bond Kangaroo. MUFG Securities, Nomura and Westpac Institutional Bank have been mandated to arrange investor calls beginning 7 October.
On 6 October, Columbus Capital launched its nonresident residential mortgage-backed securities (RMBS) deal, Vermilion 2020-1. Total indicative volume for the transaction is A$418.9 million (US$300.9 million) and is expected to price on the day after launch. Credit Suisse, Natixis and Standard Chartered are leading.
For many supranational, sovereign and agency (SSA) borrowers, providing credit to aid economies through the COVID-19 crisis goes to the core of their purpose. Even those experiencing little impact on the lending side are now dealing with substantially changed capital markets.
On 5 October, Oceania Healthcare launched a NZ$75-125 million (US$49.8-83.1 million), seven-year, senior-secured transaction. The forthcoming deal has an indicative margin range of 200-220 basis points over mid swap and is expected to price on 9 October. Westpac Banking Corporation New Zealand Branch is arranger, and joint lead manager alongside ANZ, Craigs Investment Partners and Jarden Securities.
Social distancing has been a key part of the global response to COVID-19 everywhere but debt capital markets, where social funding outcomes have come to the fore. As with most green, social and sustainability (GSS) bond developments, supranational, sovereign and agency (SSA) borrowers are leading the evolution of social issuance.
Key information, charts and contact details for 33 supranational, sovereign and agency (SSA) borrowers relevant to the Australian and New Zealand markets. In 2020, the SSA profiles have been refreshed to include detailed information on borrower green, social and sustainability funding programmes.
Since 2014, KangaNews has conducted an annual survey of supranational, sovereign and agency (SSA) issuers active in Australasian debt markets to get an update on their global funding experiences. The 2020 iteration of the survey points to a market that has come through the COVID-19 crisis in good shape, with a renewed focus on core currencies and labelled green, social and sustainability (GSS) bond issuance.