The US private placement market has arguably been the first choice for Australasian corporates’ capital-markets funding for many years. At a roundtable KangaNews and MUFG Securities hosted in Miami in January, USPP investors say they are aware that other funding options – including the Australian domestic market – are increasingly able to offer execution certainty, including at extended tenor. But they say USPPs still offer a compelling value proposition – and many Australia and New Zealand borrowers agree.
Canberra Metro executed Australia’s first green loan for a public-private partnership (PPP) with a refinancing of Canberra’s electric light-rail system. Deal sources say the loan is not structurally unique from other certified green loans, but the application of labelled green finance to PPPs potentially opens a large pipeline of opportunities for banks and investors that are increasingly focused on green assets.
On 8 December, Pepper Group launched its auto and equipment asset-backed securities (ABS) deal, Pepper Sparkz 3. Capped volume for the transaction is A$615.9 million (US$456.8 million) and is expected to price 11 December. Westpac Institutional Bank is arranger and joint lead manager alongside BofA Securities, MUFG Securities, National Australia Bank, RBC Capital Markets and Societe Generale.
On 7 December, ME Bank launched its residential mortgage-backed securities (RMBS) deal, SMHL Securitisation Trust 2020-1. Total indicative volume for the deal is A$500 million (US$371.7 million) and is expected to price by 10 December. ANZ is arranger and joint lead manager alongside Commonwealth Bank of Australia, MUFG Securities and National Australia Bank.