Australian dollar new issuance facing significant new-year headwinds
Australian dollar primary market syndicated supply has been muted in the first two weeks of 2021. The two traditional sources of early-year supply are largely missing, and technical factors are largely set against high-grade supply. The bright spot, intermediaries say, is that secondary market dynamics are gradually swinging in support of primary issuance.
Global sovereign survey makes compelling case for GSS issuance
A new survey of sovereign borrowers that have issued green, social and sustainability (GSS) bonds suggests a strong rationale for joining the market. Issuers responding to the survey, which was published by Climate Bonds Initiative (CBI) on 15 January, say their GSS programmes were relatively quick to deliver, enhanced transparency, found new investors and – in many cases – cut the cost of borrowing.
As environmental, social and governance issues become ever-more integrated with the credit investment process in Australia, the issue of pricing consequences for strong and weak performers is more relevant than ever. This is no longer just a question for direct emitters but also for companies with business models adjacent to emissions-intensive industries.
EIB opens 2021 with record-volume green Kangaroo bond
European Investment Bank (EIB) started Australian dollar deal flow for 2021 on 5 January, with a record-breaking climate-awareness bond (CAB) transaction. Deal sources say there are some new dynamics emerging which could support Kangaroo supranational, sovereign and agency (SSA) borrowers in 2021, though some of the factors which dragged on the sector in 2020 also remain.
KangaNews DCM Summit bank treasurers webinar
One of the most popular annual sessions at the KangaNews Debt Capital Markets Summit is the big-four bank treasurers panel. There was no shortage of discussion topics at the 2020 videoconference iteration, even though the majors have had minimal wholesale issuance to do and there is little chance of a 2021 rebound.