News
On 22 January, United Energy Distribution (UED) (A- by S&P) announced a consent solicitation process for its fixed-rate notes maturing in September 2023 and October 2024 and its floating-rate note due February 2023. The notes have outstanding volume of A$350 million (US$250.4 million), A$420 million and A$150 million respectively.
On 22 January, Province of Manitoba (Manitoba) (A+/Aa2) launched a minimum A$30 million (US$21.5 million) increase to its August 2028 Kangaroo bond, via TD Securities. The forthcoming deal has indicative price guidance in the area of 61 basis points over semi-quarterly swap and 71.5 basis points over Australian Commonwealth government bond. Pricing is expected on the day of launch.
Siobhan Toohill, group head of corporate sustainability at Westpac Banking Corporation (Westpac), and Mark Goddard, head of DCM and syndicate at Westpac Institutional Bank (WIB), both based in Sydney, discuss the bank’s approach to sustainability delivery and reporting.
Sasha Courville, head of social innovation at National Australia Bank (NAB) in Melbourne, and David Jenkins, head of sustainable finance at NAB in Sydney, share an update on impact reporting and where their bank’s approach aligns with global developments.
Northern Territory Treasury Corporation (NTTC) (Aa2) launched a new, Australian dollar denominated benchmark bond due April 2027, on 22 January. The forthcoming transaction is being marketed at 66-68 basis points over the 10-year futures contract, equivalent to 75-77 basis points area over Australian Commonwealth government bond.
On 22 January, KfW Bankengruppe (KfW) (AAA/Aaa) launched a tap of its March 2024 Kangaroo bond, with indicative price guidance of 42 basis points area over semi-quarterly swap and 47.5 basis points area over Australian Commonwealth government bond. Pricing is expected on the day after launch, according to lead managers Deutsche Bank, RBC Capital Markets and TD Securities.
Pepper Group (Pepper) announced on 21 January that it has mandated arrangers for a series of residential mortgage-backed securities (RMBS) meetings in Australia and Europe to commence on 4 February. The issuer is exploring an RMBS transaction including Australian dollars, US dollars and euros, with the euro tranche to be “exclusively backed by ‘green mortgages’” according to Pepper.
In November 2018, KangaNews brought together experts in sustainable debt from each of Australia’s big-four banks to discuss the state of the local market and its growth prospects in the year ahead. Participants acknowledge that development has not been exponential so far but point to a vast quantity of work going on behind the scenes and the challenges involved with changing attitudes, working without reliable political guidance and establishing market infrastructure.
On 21 January, Northern Territory Treasury Corporation (NTTC) (Aa2) revealed plans for a new, Australian dollar denominated benchmark bond transaction, due April 2027. ANZ, National Australia Bank and UBS have been mandated as joint lead managers for the transaction.
The third week of January saw the Kauri market reopen with World Bank's NZ$400 million (US$270.4 million) five-year deal and the Australian securitisation market reopen with a A$400 million (US$287.7 million) deal from Columbus Capital. Meanwhile, Westpac Banking Corporation priced a A$2.25 billion 5.25-year senior deal.
The Kauri market saw its first deal of 2019 on 16 January when World Bank priced a NZ$400 million (US$270.7 million), five-year deal. Deal sources say offshore interest in Kauri deals has waned but robust domestic participation and low relative yield are accommodative to issuers.