Bank of Queensland (BOQ) says its conditional pass-through (CPT) covered-bond platform offers an important point of funding differentiation following its second-ever euro deal in this format. At a time when a cluster of BOQ’s peers are pursuing residential mortgage-backed securities (RMBS) issuance, BOQ says CPT covered bonds offered an attractive cost of funds and further investor diversification.
Participants in Australia’s first syndicated sustainability-performance-linked loan (SLL) say the product could catalyse a significant uptick in corporate engagement with environmental, social and governance (ESG)-linked funding. SLLs are becoming more prominent globally and Sydney Airport’s debut demonstrates that they can have wider applicability for corporate borrowers than other ESG debt instruments.
Toyota Finance Australia (Toyota Australia) priced its largest-ever euro deal on 1 April. The issuer says an increased funding task since entering into a global partnership with Mazda Motor Corporation is leading it to lean more on offshore markets and is also seeing it consider public issuance in alternative asset classes.
Two Australian corporate borrowers accessed the euro market in the week beginning 18 March. Deal sources say Telstra Corporation (Telstra) and Scentre Group (Scentre) took advantage of the euro’s current status as the most competitive global funding option for Australian issuers to price 10-year deals, each with negative new-issue concessions.
On 21 February, BNP Paribas priced a dual-tranche senior nonpreferred EMTN, the first Australian dollar deal in this format for 2019. Lead managers say taking a simple, broadly appealing structure to the market was essential in achieving benchmark volume in what can be a challenging format.