News
The private sector is the engine of economic activity in Australia and the frontline for lowering emissions. Participants at the UN Environment Programme Finance Initiative (UNEP FI) and UN Principles for Responsible Investment (PRI) conference in Melbourne on 11 December 2019 urged corporates to act on meeting environmental and social challenges – for their businesses and for the planet.
As part of a rare and brief visit to Australia in December 2019, Marilyn Ceci, managing director and head of green bonds at J.P. Morgan in New York, met with KangaNews. Ceci does not predict that use-of-proceeds sustainable bonds will give way to general-corporate-purposes issuance with an environmental, social and governance (ESG) overlay. She views the urgency of the low-carbon-economy transition to be such that all well-considered, meaningful and deliberate steps on the sustainability path are critical.
National Australia Bank (NAB) says the increase in Australian dollar tier-two issuance has influenced the pricing equilibrium of senior paper. On 13 January, NAB printed its first domestic senior deal since the Australian Prudential Regulation Authority’s decision on local total loss-absorbing capacity (TLAC) in July 2019.
Asian Development Bank (ADB) (AAA/Aaa/AAA) launched the first Kauri bond of 2020, on 14 January. The five-year, minimum NZ$200 million (US$132.6 million) transaction is being marketed at 33 basis points area over mid swap, equivalent to 42.5 basis points area over New Zealand government bond. BNZ and TD Securities are joint lead managers for the deal, which is expected to price on the day after launch.
New Zealand Green Investment Finance (NZGIF) is a pillar of the government’s strategy for the environment. The fund now has the green light to deploy its NZ$100 million (US$66.5 million) of mandated funds. Wellington-based chief executive, Craig Weise, speaks with KangaNews about the green bank’s flexible strategy, long-term horizons and how it will go about crowding in private-sector investment.
On 14 January, GPT RE (A/A2), the responsible entity for General Responsible Trust (GPT), announced it will be exercising the early call option on its A$150 million (US$103.5 million) fixed-rate notes maturing 11 September 2020. The notes will be redeemed at par on 11 March 2020.
On 13 January, National Australia Bank (NAB) (AA-/Aa3/AA-) launched a new self-led, five-year, Australian dollar denominated, senior-unsecured, benchmark transaction. Indicative price guidance for the forthcoming deal, which is expected to price on the day of launch, is 78 basis points area over semi-quarterly swap.
On 13 January, National Australia Bank (NAB) (AA-/Aa3/AA-) revealed its intention to undertake a new, self-led, five-year, domestic, senior-unsecured benchmark deal, expected to launch in the near future.
Australian market activity in the first full week of the new year was highlighted by ANZ Banking Group's A$3.5 billion (US$2.4 billion), senior-unsecured, multi-tranche deal and European Investment Bank's A$400 million October 2025 Kangaroo tap.