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Some market developments are both evolutionary and revolutionary. One example discussed in depth at the KangaNews Debt Capital Markets Summit 2019 is the use of distributed-ledger technology (DLT). King & Wood Mallesons is playing a central role in deploying decentralisation and Sydney-based senior associate, Max Allan, shares a progress report.
The scale of demand for Woolworths’ debut green bond – which supported a significant price revision – further demonstrates the potential of the asset class for local corporate borrowers, issuer and leads say. Demand for certified sustainable bonds could even be sufficient to put mid-curve domestic issuance on a pricing par with bank loans and thus entice more issuers to market.
On 16 April, BNG Bank (AAA/Aaa/AAA) launched a minimum A$20 million (US$14.3 million) increase to its April 2029 Kangaroo bond, via RBC Capital Markets. The forthcoming deal is being marketed at 54 basis points area over semi-quarterly swap, equivalent to 65.75 basis points area over Australian Commonwealth government bond and is expected to price on the day of launch.
On 16 April, Province of Ontario (Ontario) (A+/Aa3) launched a new, 10.5-year, minimum A$40 million (US$28.7 million) Kangaroo bond. The forthcoming transaction is being marketed at 62 basis points area over semi-quarterly swap, equivalent to 78.9 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to sole lead manager TD Securities.
The specificity of Inter-American Development Bank (IADB)’s inaugural Australian dollar EYE – education, youth and employment – bond was key to its robust execution outcome, deal sources say, as local demand increases for high-quality and clearly defined use of proceeds for social-bond issuance. IADB has only previously issued public benchmark EYE bonds in US dollars.
