Some of the world’s leading issuers from the supranational, sovereign and agency sector took part in a virtual discussion about funding conditions and issuance approaches in mid-2023. The borrowers tell KangaNews the Kangaroo market has an increasingly structural role in their funding plans despite ever-changing demand dynamics. The New Zealand market, meanwhile, is facing up to a major regulatory risk event.

The biggest question for capital allocation in sustainable finance is how to capture externalities – most importantly the wider cost of emissions – without excessively adversely affecting performance. L-Bank acted as dual studies partner for research by graduate student David Alexander Jablonski, which finds that there may be a performance benefit from investment in a Paris Agreement-aligned portfolio.

Supranational, sovereign and agency Kangaroo issuance started the new year at record pace and by late February remained on course for the busiest start to the year for a decade. Market users say a raft of supporting factors has made deal flow possible for a notably wide range of issuers and share  a cautiously optimistic outlook for the rest of 2022.

Sustainable finance continues to gather momentum in 2021, with record labelled issuance and ‘greeniums’ developing into the norm for pricing these instruments. A recent thesis questions the efficacy of such developments, however – instead calling for a sustainable-finance market that considers entities as a whole rather than their individual assets.

Key information, charts and contact details for 36 supranational, sovereign and agency (SSA) borrowers relevant to the Australian and New Zealand markets. Profiles include details on sustainable finance and overall funding strategies.