New South Wales Treasury Corporation
The scale of New South Wales (NSW)’s infrastructure task and its well-defined links with sustainable outcomes – in both the environmental and social arenas – enabled NSW Treasury Corporation (TCorp) to debut in the green-bond market with a blockbuster deal. TCorp issued A$1.8 billion (US$1.3 billion) of 10-year green bonds on 9 November.
On 26 February, New South Wales Treasury Corporation (TCorp) (AAA/Aaa) launched a new 2% March 2033, Australian dollar denominated, syndicated, benchmark deal. Indicative price guidance for the forthcoming transaction is 68-72 basis points area over 10-year futures contract, equivalent to 59.9-63.9 basis points area over Australian Commonwealth government bond.
Government-sector issuers are among Australasia’s most active in the green, social and sustainability (GSS) bond space. They are also responding to increasing investor demand for entity-level environmental, social and governance (ESG) commitments and say they are well placed to provide these despite some negative headlines.
Key data and information on 15 high-grade issuers active in the Australasian debt markets, including funding strategy information, debt data and issuer-specific perspectives.
A set of circumstances conducive to borrowing has characterised the Australian government sector in the last 12 months. A lower sovereign requirement, regulatory changes and benign market conditions have all provided tailwinds, even as the economy has slowed. KangaNews convened the sector’s largest issuers in Sydney in January to discuss the state of play.
A favourable basis swap has enabled New South Wales Treasury Corporation (TCorp) to take advantage of a funding opportunity in euros that was well inside its Australian dollar cost of funds. The issuer says there is opportunity in euros but its own clients’ demand constrains supply.