Australian corporates looking to Europe need familiarity to succeed
Transurban’s euro transaction on 1 April marked the first time an Australian corporate has waded into public debt capital markets since the onset of the COVID-19 crisis. Deal sources say offshore liquidity has been strong but it took an issuer familiar to the market to take advantage.
TCorp reopens primary market amid COVID-19 crisis
New South Wales Treasury Corporation (TCorp) printed the first benchmark transaction in the Australian public market since the coronavirus pandemic escalated. Deal sources say investor engagement was critical for price discovery in a dislocated and volatile environment.
AOFM to deploy first ABSF funds, but future unclear
Judo Bank is the recipient of the first tranche from the Australian Office of Financial Management’s Australian Business Securitisation Fund, the AOFM revealed on 2 April. Judo will also receive support from the structured finance support fund. The immediate future of the ABSF is unclear, however, as the AOFM has also suggested that proposals for ABSF support may be rolled into the SFSF.
Negative outlook on Australian banking system based on post-crisis challenges
Moody’s Investors Service has changed its outlook on the Australian banking system to negative. The rating agency says the move is based on the expectation that the banks’ operating environment, capital positions and loan quality will be materially weaker when Australia starts to emerge from the COVID-19 crisis.
RBNZ adds long-term bank funding and restricts capital redemptions
The Reserve Bank of New Zealand (RBNZ) has added a term-lending facility (TLF) for banks to its suite of COVID-19 relief measures. It has also restricted banks from redeeming capital instruments that are not common-equity tier-one (CET1).