The economy-wide impact of COVID-19 has affected Australian corporate borrowers in a host of ways. But access to funds has generally remained in place as issuers navigate a path back to some type of normality – even for those in the most affected sectors.

While true corporate deals in the Australian market last year did not reach the heights of 2017, a second-half resurgence brought record volume from triple-B issuers and hints that extended duration is on the cards once more. The question is whether the corporate space will continue to grow in 2020 or lose momentum as it did in 2018.

KangaNews and National Australia Bank’s Fixed Income Beyond the Institutional Sector Summit returned to Sydney on 1 August. Agenda discussions focused on the future economy and what investors need to do to adapt to a rapidly changing world, with perspectives from a stellar range of speakers spanning the business and market universe.

Ongoing institutional support for unrated NEXTDC has allowed the returning issuer further to bolster its capital-requirement capabilities for the future. Capacity issues are not yet a valid concern, however the issuer is making plans for when unrated supply may eventually outpace demand in the local market.

On 3 June, NEXTDC (NR) launched an aggregate A$150-200 million (US$104-138.6 million) tap to either or both of its fixed- and floating-rate June 2022 notes. The fixed-rate notes have an indicative yield of 4.918 per cent, while the floating-rate note tap is being marketed at 375 basis points area over three-month bank bills. National Australia Bank is sole lead arranger and bookrunner.

On 6 May, NEXTDC (NR) mandated National Australia Bank to arrange an increase to its existing June 2022 floating-rate note (FRN) transaction.

On 3 July, NEXTDC launched its four-year senior-unsecured notes transaction, Notes IV. NEXTDC is aiming to raise A$250 million (US$183.4 million), with the ability to take oversubscriptions. Full terms of the transaction will be lodged with the ASX once pricing is finalised.

On 15 June, NEXTDC mandated National Australia Bank to arrange a series of fixed-income investor meetings, regarding a possible Australian dollar denominated transaction.