On 17 January, Westpac Banking Corporation (Westpac) launched a new, self-led 5.25-year benchmark senior-unsecured domestic deal. The forthcoming transaction will come in either or both fixed- and floating-rate formats and has indicative price guidance of 115 basis points area over swap benchmarks. Pricing is expected on the day of launch.
ANZ Banking Group (ANZ) became the first non-UK bank to execute a sterling covered bond referencing an alternative benchmark rate on 11 January. The deal also takes Australian-issuer engagement with alternative reference rates a step further, as the longest maturity – and by far the largest – deal to reference an alternative benchmark printed by an Australian issuer to date.
Proposed new capital-ratio requirements for New Zealand’s banking sector are causing frustration in the local debt market as participants grapple with a raft of potential consequences. While financial institutions have grown accustomed to increases in capital requirements in the post-financial crisis era, market participants say the wider implications of such a significant shift are largely unknown.