Citi
Citibank’s opco deal provides diversity for Australian dollar market
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.
First mover: inside Westpac’s tier-two return and the Australian TLAC setup
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.
Critical thinking
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.
HQLA revision already moving the dial for semi-government sector
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.
TCorp prints A$2 billion April 2029 syndicated tap
TCorp announces April 2029 syndicated tap
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.
