The US private placement (USPP) market has continued to attract double the issuance volume of the Australian domestic market for corporate borrowers despite less competitive US dollar funding costs for Australian corporates during 2019. Sources say USPP pricing is back to a historic low and shows little sign of weakening.
Citibank, the operating company (opco) issuer of Citi, issued its first-ever Australian dollar deal on 10 May. The transaction came in 3(a)(2) format, which limits domestic bank-balance-sheet participation. However, deal sources say the scarcity value of opco debt from a global bank was enticing for domestic fund managers.