Reverse enquiry spurs AfDB’s Kauri market return with SRI bond
African Development Bank (AfDB) made its first foray into the Kauri market in more than four years on 21 February, with a rapidly launched and priced 10-year socially responsible investment (SRI)-linked deal. The issuer and lead say the deal was made possible by reverse enquiry from Asia, and insist the theme and maturity present a positive development for the market.
Rates backdrop drives scale of demand for World Bank Kangaroo
World Bank’s latest Kangaroo deal marks its return to large mid-curve volume issuance, having been absent since September 2017. The leads and issuer say a softening global rates environment and increasingly positive market tone were key in achieving very robust volume outcome.
Trustpower breaks unrated coupon floor with resetting deal
Trustpower kicked off New Zealand corporate flow for 2019 with an outcome that sources insist carries over positive momentum from the previous year. It is the first New Zealand unrated corporate deal to break a 4 per cent coupon floor, using the 10-year resetting structure which gained in popularity late in 2018.
Increasing deal size and decreasing frequency to the fore for majors
National Australia Bank (NAB)’s latest Australian dollar senior deal faced some challenges in execution, deal sources say, but still managed to draw significant volume and tightened pricing relative to guidance. The transaction is evidence of a growing trend of higher volume but lower issuance frequency by Australia’s major banks.
Structural features bring investor diversity to Westpac’s funding-only RMBS
Broad investor participation characterised Westpac Banking Corporation (Westpac)’s first residential mortgage-backed securities (RMBS) transaction since 2015. The issuer attributes robust demand to structural features including a funding-only structure, a date-based call and a Hong Kong listing – and envisages a more regular RMBS issuance schedule going forward.