Structural changes opening opportunities for New Zealand nonbanks
In the wake of its latest New Zealand residential mortgage-backed securities (RMBS) deal, Resimac says structural changes in the local mortgage market are opening opportunities for nonbanks in prime mortgage lending and, therefore, securitisation. The issuer also says the depth and breadth of bids for its paper broadened in the new transaction.
Business development and conducive market an upper for Downer
Downer Group Finance (Downer) priced its first Australian dollar deal since 2015 on 15 April. Issuer and leads say significant developments in Downer’s business composition opened the deal up to a broader suite of investors, while prevailing market sentiment induced a rapid book build and tightened pricing.
IADB’s debut Kangaroo EYE bond adds welcome supply to Australia’s social-bond sector
The specificity of Inter-American Development Bank (IADB)’s inaugural Australian dollar EYE – education, youth and employment – bond was key to its robust execution outcome, deal sources say, as local demand increases for high-quality and clearly defined use of proceeds for social-bond issuance. IADB has only previously issued public benchmark EYE bonds in US dollars.
Woolworths delivers next evolution of Australian green-bond issuance
The scale of demand for Woolworths’ debut green bond – which supported a significant price revision – further demonstrates the potential of the asset class for local corporate borrowers, issuer and leads say. Demand for certified sustainable bonds could even be sufficient to put mid-curve domestic issuance on a pricing par with bank loans and thus entice more issuers to market.
ABSF gets green light to catalyse SME securitisation in Australia
The Australian Business Securitisation Fund (ABSF) passed both houses of parliament on 3 April and received royal assent on 5 April. The initiative – which directs the Australian Office of Financial Management (AOFM) to increase the availability of finance to SMEs – now enters the final stages of planning before becoming operational on 1 July 2019.