Adelaide Airport rekindles investor relations in domestic return as it hits funding turning point
Following its first Australian dollar deal in seven years, Adelaide Airport says re-engaging with the local investor base was a top priority as it embarks on a new capex plan and plans for upcoming maturities. While issuance has slowed since a hectic end to Q1, the deal book demonstrates ongoing robust demand for Australian dollar corporate credit.
Allied Credit pumps up the volume in ABS return
Allied Credit’s latest asset-backed securities transaction more than doubles the size of its largest previous deal. The issuer says the deal is effectively the first of a new programme given it now carries two credit ratings and is European Securities and Markets Authority reporting compliant, factors that helped provide comfort to some offshore accounts that had previously not been able to participate.
Nestlé’s leads hope it could be the lure for more Kangaroo corporates
Deal sources say Nestlé’s jumbo debut Kangaroo transaction is a further show of confidence for the Australian dollar market. They hope it could spur other international corporate names to consider Australian dollar funding after a three-year drought since the last Kangaroo corporate issuance of similar size.
Loan evolution paves the way for Prospa to deliver closed-pool ABS with shorter WAL
Prospa’s ability to lengthen the lifespan of its loan originations allowed the issuer to adopt a more traditional closed-pool deal structure in its return to the securitisation market. Offering shorter weighted average life securities was positively received by domestic investors, the issuer reveals – but it adds that there is more work to be done to educate offshore accounts about Australian SME credit.
Asian demand for Australian credit likely to remain high
The Asian bid has been a major talking point in the Australian credit market in early 2024 and, while technical factors have provided a strong tailwind, market participants believe the outlook is positive for the medium term at least. Finding ongoing sources of bank and corporate supply may be a bigger concern.