News
Sustainable lending is a key pillar of ING Bank (ING)’s plans to “significantly grow its wholesale lending business in Australia”, which will also have a focus on the bank’s strengths by sector and network capabilities. A local debt capital markets presence is not on the radar at present, though ING hopes to be increasingly involved in international debt issuance from Australia as its client base grows.
On 31 July, Liberty Financial (Liberty) revealed plans to engage investors regarding a possible Australian dollar deal off its small-ticket commercial-loans SME programme. Credit Suisse and Westpac Institutional Bank have been mandated for the potential deal.
ME Bank launched its residential mortgage-backed securities (RMBS) transaction, SMHL 2018-2, on 30 July. The deal has indicative total volume of A$500 million (US$369.8 million) and is expected to price on or before 3 August.
On 30 July, Resimac mandated Citi, Commonwealth Bank of Australia and National Australia Bank to engage with investors regarding a possible nonconforming residential mortgage-backed securities (RMBS) transaction, Bastille 2018-1. The potential deal will include Australian dollar and US dollar tranches in 144a format.
Securitisation was prominent in the final full week of July, with Pepper Group pricing a A$1 billion (US$738 million) residential mortgage-backed securities (RMBS) transaction, ME Bank taking indications of interest for a potential RMBS deal and CNH Industrial Capital Australia revealing plans to meet asset-backed securities investors.
Green bonds make up more than three-quarters of Australia’s impact-investment asset class by dollar volume, according to a report published by Responsible Investment Association Australasia (RIAA). The report suggests that, at A$5.8 billion (US$4.3 billion) of committed funds, impact investment remains a niche market in Australia – but one that has experienced exponential growth.
On 27 July, Inter-American Development Bank (IADB) (AAA/Aaa) launched a minimum A$25 million (US$18.4 million) increase to its June 2029 Kangaroo bond. The forthcoming deal is being marketed at 41 basis points area over semi-quarterly swap and 53.25 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to lead managers Nomura and RBC Capital Markets.
On 26 July, Quartz Finance, an entity owned by Blackstone Group (Blackstone), appointed National Australia Bank to co-ordinate the purchase of Investa Office Fund (IOF)’s A$150 million (US$111.6 million) green-bond line which had been set to mature in April 2024. The purchase of the notes is subject to the finalisation of Blackstone’s acquisition of IOF.