Citibank, the operating company (opco) issuer of Citi, issued its first-ever Australian dollar deal on 10 May. The transaction came in 3(a)(2) format, which limits domestic bank-balance-sheet participation. However, deal sources say the scarcity value of opco debt from a global bank was enticing for domestic fund managers.
Westpac Banking Corporation (Westpac) was the first Australian major bank to print a tier-two deal following the Australian Prudential Regulation Authority (APRA)’s final total loss-absorbing capacity (TLAC) requirement ruling. The issuer says a lower-than-expected incremental tier-two requirement makes the task more manageable and current conditions provided a tailwind, but longer-term questions are yet to be resolved.
Global leaders in the green, social and sustainablility (GSS) bond space are acutely aware of the core goal of the asset class: to drive capital into sustainable assets and thus help reshape the world economy. A debate is raging about how best to bring more participants into the environmental, social and governance (ESG) investment world – all while the climate-change clock is ticking.
Bank balance sheets doubled their participation in New South Wales Treasury Corporation (TCorp)’s latest syndication. Market participants say this is no surprise given a recent tweak to Australia's liquid-assets regime for major banks – adding that the changes should drive further incremental bank demand to local high-grade issuers.
On 24 June, New South Wales Treasury Corporation (TCorp) (AAA/Aaa) launched a syndicated increase to its April 2029 line. Indicative price guidance for the forthcoming transaction is 51.25-54.25 basis points area over the 10-year futures contract, equivalent to 52-55 basis points area over Australian Commonwealth government bond.