News
Natixis unveiled its “green weighting factor” (GWF) on 23 September, with the claim that this makes it the first financial institution to monitor and manage the climate impact of its whole balance sheet. Following a recent visit to Australia, Orith Azoulay, global head of the green and sustainability hub at Natixis in Paris, spoke to KangaNews about how the GWF allocates and adjusts financing to deals based on their ‘greenness’.
Deal sources say Citibank Sydney Branch (Citibank Sydney)’s debut domestic deal attracted significant demand from Australia and Asia as the issuer was able to capitalise on a brief pause in Australian dollar financial institution (FI) issuance at the beginning of November.
On 12 November, Lonsdale Finance (Baa2/BBB), the financing arm of Port of Melbourne, launched a new seven-year, Australian dollar denominated transaction. The deal is being marketed at 140-145 basis points area over semi-quarterly swap, according to joint lead managers ANZ, Commonwealth Bank of Australia and National Australia Bank. Bank of China is a passive lead manager on the transaction.
South Australian Government Financing Authority (SAFA) revealed a book update for its indicative A$1 billion (US$685 million) May 2030 syndicated tap on 11 November. Indicative price guidance has been revised to 55.5-56.5 basis points area over the 10-year futures contract, equivalent to 54.5-55.5 basis points area over Australian Commonwealth government bond, after launching earlier in the day with a margin range of 55-57 basis points area and 54.125-56.125 basis points area, respectively. The book is in excess of A$770 million.
Commonwealth Bank of Australia (CommBank) is seeking to demonstrate the viability of the Australian Overnight Index Average (AONIA) as an alternative reference rate (ARR) to the securitisation market through a first-ever residential mortgage-backed securities (RMBS) deal linked to the benchmark. The issuer says it is confident the market is ready for this type of issuance and expects all its future RMBS issuance to be AONIA-linked.
National Australia Bank (NAB) tested domestic appetite for longer tier-two tenor with its first deal since Australian total loss-absorbing capacity (TLAC) rules were finalised. NAB says the support for the deal’s 12-year non-call seven (12NC7) duration illustrates underlying appetite for Australian major-bank credit in the tier-two space.
On 11 November, VisionFund International (VisionFund), the microfinance subsidiary of World Vision, launched an inaugural five-year, indicative A$20 million (US$13.7 million) Kangaroo impact bond. The forthcoming deal has a coupon of 5 per cent paid semi-annually. FIIG Securities is leading.
On 11 November, Bendigo and Adelaide Bank (BEN) launched its residential mortgage-backed securities (RMBS) deal, Torrens Series 2019-2. Total indicative volume for the transaction is A$500 million (US$342.8 million), with the potential to upsize to A$1 billion. Pricing is expected on or before 15 November, according to joint lead managers ANZ, Macquarie Bank, National Australia Bank and Westpac Institutional Bank.
On 11 November, South Australian Government Financing Authority (SAFA) (AA+/Aa1) launched a syndicated increase to its May 2030 bond. Indicative price guidance for the forthcoming deal is 55-57 basis points area over the 10-year futures contract, equivalent to 54.125-56.125 basis points area over Australian Commonwealth government bond.