Reverse-enquiry interest sparked ANZ Banking Group’s return to domestic tier-two issuance on the heels of a jumbo print the bank executed in August. The issuer says the decision to open the latest deal up from reverse enquiry paid off, with tenor and pricing points attracting strong investor support domestically and offshore.
New Zealand has become a test bed for monetary policy as the country became the first in the developed world to raise rates during the latest round of tightening. Participants at the third annual KangaNews-Westpac New Zealand high-grade roundtable discussed the context of local monetary policy and the funding outlook for local government sector issuers.
New Zealand is once again among the world leaders in the economic cycle, as its central bank battles with sky-high inflation through successive rate increases. The response was a key talking point at the ANZ-KangaNews New Zealand Capital Market Forum, which took place in Auckland in late May.
A pair of environmental, social and governance-aligned loans written by New Zealand borrowers in March demonstrate the growing local appeal of this type of borrowing. Auckland Council demonstrated the applicability of sustainability-linked debt in the government sector, while Morrison & Co introduced a sustainability use-of-proceeds facility to the public-private partnership space.
Auckland Council wants to shift all its bank debt into sustainability-linked loan format, following its conversion of an existing standby facility and execution of a sustainability-linked interest rate swap. The council says the transactions represent the latest steps linking funding to its sustainability goals.
HIGH-GRADE ISSUERS YEARBOOK 2022
The ultimate guide to Australian and New Zealand government-sector borrowers.