The investor-friendly approach adopted by Banco Santander in the execution of its A$800 million (US$611.9 million), senior-nonpreferred EMTN was instrumental in the deal’s volume and bookbuild outcome, deal sources suggest. They say other offshore bank issuers are circling, based on a view of Australian dollars as a good diversification option.
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External support still the talking point in bank ratings review
The nature and likelihood of pre-failure external support for banks has been brought back into focus following an update to the methodology Moody’s Ratings uses to assess the Australian banking sector. Some banks do not believe the new analysis gives sufficient weight to the likelihood of external support before the point of failure – even for entities not deemed systemically important.
More domestic heat on show in HSBC’s first domestic tier-two Kangaroo
HSBC Holdings’ tier-two Kangaroo – priced on 14 March – is the bank’s first subordinated transaction issued in Australian dollars and its first Kangaroo in any format since 2010. With book volume once again impressing – this time for a less-trafficked asset class – deal participants say the trade reflects ongoing strength in the Australian market, including for higher-yielding instruments.