Australia’s first SLB goes to the heart of transition
Wesfarmers says its sustainability-linked bond – the first in the Australian dollar market – lays out ambitious targets and addresses the group’s hard-to-abate business unit. The transaction also demonstrates willingness on the part of Australian dollar investors to engage with bespoke KPIs on the basis of a one-way pricing penalty if the issuer fails to hit its targets.
NOW Finance deepens its investor pool in ABS return
Renewed risk appetite and a new business strategy implemented in the final quarter of 2020 set up NOW Finance to return to the securitisation market for its second transaction, the issuer says. The response was highlighted by a swathe of new investors and good coverage across the capital stack.
ANZ expands the rivers of tier-two paper
ANZ Banking Group’s recent issuance of tier-two securities in the sterling market is the first UK transaction in this format from an Australian bank since prudential reforms announced in 2019. The issuer says diversification and attractive pricing drove the move as the bank continues to position itself for the 2024 deadline for new capital rules.
Green loans roll on for PPPs
Qtectic became the second public-private partnership (PPP) to take advantage of Australia’s burgeoning green-loan opportunities in mid-May. The consortium owns and operates Queensland’s new-generation trains and was able to secure certification under the Climate Bonds Initiative’s low-carbon transport criteria. Deal sources say many PPPs are ripe for labelled finance.
MTF’s return highlights growing optimism in New Zealand securitisation
The New Zealand securitisation market is showing positive signs after a stop-start few years, with issuer and lead managers on the year’s first new public transaction suggesting momentum is building to the extent that 2021 could become a record issuance year.