Online articles

  • Investor crossover leads to domestic execution opportunities for New Zealand corporates

    New Zealand domestic corporate deal flow is underway for 2018, with GMT Bond Issuer, the financing arm of Goodman Property trust (Goodman), and Transpower New Zealand (Transpower) pricing transactions that deal sources say demonstrate supportive demand dynamics. A notable feature of these...
  • Sustainability scores

    In March, for the first time, KangaNews hosted its Sustainable Debt Summit as a full-day event, reflecting the exponential growth in interest in environmental, social and governance (ESG) integration in the fixed-income universe. The sector is now much broader than green-bond issuance, as...
  • Bluestone targeting growth following private-equity injection

    Bluestone Group (Bluestone) agreed acquisition terms with US private-investment firm Cerberus Capital (Cerberus) on 27 February, which sees the specialist lender’s Asia-Pacific business spun off as a separate entity. In the wake of the transaction, Campbell Smyth, Bluestone’s Sydney-based chief...
  • DBS’s tier-two Kangaroo avoids volatility to achieve tight pricing

    Benchmark-sized tier-two Kangaroo issuance returned to the Australian market on 7 March, with DBS Group Holdings (DBS) pricing a deal that, according to the issuer, avoided the effects of global market volatility through a tight execution strategy and a groundwork of solid investor relations.
  • Eyes on Australia: Zurich Insurance Group

    With a significant market share in the Australian individual life-insurance market after recent acquisitions, Zurich Insurance Group (Zurich) is going on a roadshow to Australian and Asian investors towards the end of April. Mathias Meisel, head of capital markets in Zurich, talks to KangaNews...
  • Firstmac’s new approach opens door to Asian regional RMBS issuance

    Firstmac’s return to the residential mortgage-backed securities (RMBS) market took a new approach to US dollar issuance. This – together with the issuer’s longstanding engagement with international investors and a European-friendly deal structure – allowed it to find brand-new investors and a...
  • German agency sector: liquidity and relative value

    Germany’s biggest federal-state agency issuers have taken a longstanding, strategic approach to building a presence in the Kangaroo market. This year the borrowers are likely to offer better relative value than ever, as the German sovereign and state issuers are forecasting declining debt-issuance...
  • Global demand drives Pepper’s latest RMBS book past A$2 billion

    Demand for Pepper’s latest residential mortgage-backed securities (RMBS) transaction surpassed A$2 billion (US$1.5 billion) including a substantial offshore bid. The deal was well underway before market volatility spiked again, but the issuer says the main driver of investor support was its...
  • Green wave

    Participants in the sustainable-debt space say the launch of green-loan principles (GLPs) could be another evolutionary step in sustainable funding. By standardising and codifying what qualifies as green bank lending, the GLPs could make sustainable finance relevant to a wider cohort of borrowers...
  • IADB’s Kauri return highlights long-dated investor interest

    A rare long-end Kauri print, by Inter-American Development Bank (IADB) on 9 March, hints at potential future market development according to deal sources. With Kauri mid-curve issuance enjoying a renaissance so far in 2018, IADB’s transaction may indicate the possibility of an emerging...
  • IFC seeks market evolution with first Kangaroo social bond

    The Australian responsible-investment market has taken another evolutionary step with the pricing of the inaugural Kangaroo social bond by International Finance Corporation (IFC). The issuer says the deal presented challenges, but IFC is confident the product will grow. Meanwhile, intermediaries...
  • Issuer specifics continue to drive offshore market selection for Australian corporates

    Recent deal outcomes for Transurban Queensland and Sydney Airport demonstrate the ongoing willingness of a range of international markets to provide liquidity to Australian corporate borrowers, deal sources say. While pricing outcomes vary, specific issuers’ funding strategies and the ongoing...
  • Local market-building goal to keep Auckland Council in New Zealand for green debut

    Auckland Council plans to tap the New Zealand dollar market for its debut green bond during 2018, as the issuer aims to play its part in providing the supply needed to catalyse domestic funds growth. The council revealed on 7 March that it plans to become a green-bond issuer this year, though it...
  • New Zealand stays the course

    Global capital markets face a range of geopolitical and economic challenges, the impacts of which continue to affect New Zealand. Participants at the KangaNews New Zealand Capital Markets Forum, which took place in Wellington in early March and was sponsored by ANZ, reflected on New Zealand’s...
  • Price and volume aspirations key for CommBank as it returns for new AT1

    Commonwealth Bank of Australia (CommBank) launched its first retail-targeted additional tier-one (AT1) transaction of 2018, PERLS X capital notes (PERLS X), on 7 March. CommBank says it is balancing price and volume aspirations carefully – and it is confident of a robust outcome. This is based on...
  • Reg S dominates as Australian offshore corporate flow kicks off for 2018

    Australian-origin nonfinancial corporate offshore public issuance got underway for 2018 as Pacific National debuted in US dollar Reg S format on 15 March. In the wake of the transaction, the issuer tells KangaNews that a groundswell of support from local intermediaries for the Reg S option drove...
  • Slow to return

    Last year was the most positive for Australia’s corporate bond market since its previous purple patch around 2012. But some corporate names that issued half a decade ago are yet to take advantage of the renewed good conditions. KangaNews asked a handful of these issuers why not.
  • The real test

    The biggest question for the Australian dollar corporate market after a record-breaking year for new issuance in 2017 was how resilient the developments that boosted the sector’s relevance to issuers would be to a market downturn. That downturn appears to be upon us, and the jury is still out on...
  • Under the radar

    The Australian dollar market has picked up its game when it comes to bringing together debt capital and investment-grade borrowers. The gradual emergence of a private debt market suggests that, in time, the same might be true for a bigger group of corporate borrowers outside the benchmark arena.
  • USPP market triumphs for Tabcorp’s acquisition refinancing

    With Tabcorp having been absent from capital markets since 2012, Stuart Roe, Tabcorp’s Melbourne-based general manager, corporate finance, discusses market selection in the wake of the company’s return. The US$1.4 billion US private placement (USPP) deal, priced in the early hours of 23 March, is...
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