The Australian Prudential Regulation Authority (APRA)’s proposals regarding total loss-absorbing capital (TLAC) for Australian banks were a key factor driving robust demand for Westpac Banking Corporation (Westpac)’s record-breaking senior deal, the issuer says. The announcement may ultimately also support spread tightening for major-bank senior debt going forward.
So far, the only banks to have issued sustainability-themed bonds denominated in Australian dollars have been domestic institutions – just one of the reasons why deal volume has yet to catch fire. One positive sign is the conduciveness of the Australian dollar market for high-grade issuers, including to global supranational, sovereign and agency names.
Key data and information on 23 global bank issuers active in the Australian dollar market. The issuer section includes funding strategy information as well as corporate debt data on profiled borrowers.
On 10 December, TR Group (Baa3), a heavy vehicle rental and lease company, revealed plans to engage wholesale debt investors for a possible five-year New Zealand domestic transaction. Commonwealth Bank of Australia and Westpac Banking Corporation New Zealand have been mandated for the potential deal.
The New Zealand securitisation market welcomed a new entrant on 6 December when Latitude Financial Services (Latitude) priced its inaugural New Zealand dollar asset-backed securities (ABS) deal. The deal’s domestic focus provided insulation from external market forces according to deal sources, who add that there is growing enthusiasm for securitised product among local buyers.