On 22 January, United Energy Distribution (UED) (A- by S&P) announced a consent solicitation process for its fixed-rate notes maturing in September 2023 and October 2024 and its floating-rate note due February 2023. The notes have outstanding volume of A$350 million (US$250.4 million), A$420 million and A$150 million respectively.
Investa Commercial Property Fund (ICPF) has closed a A$170 million (US$122.3 million) green loan having tagged its entire asset portfolio against the Climate Bonds Initiative (CBI) low-carbon-building criteria emission thresholds. The facility is bilateral with ANZ, but the borrower says green loans should be able to find new liquidity and pave the way for more downline green-bond issuance.
The US private placement (USPP) market has arguably been the preferred bond-funding option for Australian corporate borrowers for many years. Market participants acknowledge Australian issuers’ closer ties to USPP than credits from comparable jurisdictions, and say demand evolution in the US means there is little chance of a change in issuance habits.
In late November 2018, KangaNews hosted its annual roundtable discussion for Australian fixed-income strategists. At the end of a turbulent year for markets and geopolitics, the discussion was unusually wide-ranging – taking in factors as diverse as the long-term status of the US dollar as global reserve currency, the duration of the Australian housing-market decline and the credit-supply outlook.