KangaNews and RBC Capital Markets held their annual roundtable for heads of funding at Australia’s big-four banks at a fascinating juncture for the sector. Limited credit growth and highly supportive demand conditions are clearly assisting the funding task in the near term. The requirement to build much bigger tier-two debt books and the ever-present threat of volatility pose medium-term – but manageable – challenges.
Investor diversity was front of mind recently for National Australia Bank (NAB) with two esoteric capital transactions in as many days. The major banks face increased capital requirements and NAB says developing new avenues to achieve funding and investor diversity is crucial.
On 2 December, Pepper Group (Pepper) mandated Bank of America, MUFG Securities, National Australia Bank, RBC Capital Markets, Societe Generale and Westpac Institutional Bank to engage investors regarding a potential auto and equipment asset-backed securities (ABS) deal from its SPARKZ programme. Subject to market conditions, the transaction is expected to launch in early 2020.
KangaNews is proud to present the winners of the institutional and deal categories in the KangaNews Awards 2019. After an extensive voting and verification process, KangaNews can confidently say its results reflect a true market view on the outstanding performers of 2019 in the Australian and New Zealand debt markets.
On 19 November, NextEra Energy Capital Holdings (NextEra Energy) launched a new seven-year green Kangaroo transaction. Indicative price guidance for the forthcoming deal, which is expected to price on the day after launch, is 130 basis points area over semi-quarterly swap. The notes are expected to be rated BBB+/Baa1/A-, according to J.P. Morgan and RBC Capital Markets.