Global ESG acceleration a rising tide for sustainable-debt product and practice
The global sustainable-debt market has traditionally taken its lead from Europe but its innovations are increasingly being adopted globally. Susan Barron, global head of green and sustainable capital markets at Barclays in London, and Jake Hartmann, the bank’s Sydney-based director and head of debt capital markets, Australia and New Zealand, share a view on global developments and lessons for Australian borrowers seeking to align with international best practice.
Fast start for Australian banks in global markets
Australia’s largest banks typically move quickly to get ahead of wholesale funding tasks with substantial offshore issuance at the start of the calendar year. With a big refinancing task ahead, 2023 has been no exception. Bank treasuries say a conducive buy side supported a particularly busy start to the year, while some market sources say it was also a case of making hay while the sun shines.
ASB times its US dollar run to reap benefits of tighter spread
The combination of tighter margins and the depth available in the 144A market supported ASB Bank’s second US dollar trade this calendar year. Deal participants say the transaction drew strong interest from Asian accounts, which were attracted by the diversification and high quality of New Zealand bank credit.
Sustainability's deep roots in a changing world
Susan Barron, London-based global head of sustainable capital markets at Barclays, recently visited Australia to speak with clients on global sustainable finance developments and opportunities. Together with the bank’s Sydney-based head of debt capital markets, Australia and New Zealand, Duncan Beattie, she sat down with KangaNews Sustainable Finance to share the latest on how the environment of 2022 has shaped market evolution.
Banks consider funding strategy as TFF maturity draws near
The term funding facility was a sufficiently large market intervention to all but negate Australian banks’ wholesale funding requirements for around 18 months. The bill starts to come due on this vast sum of central-bank liquidity early in 2024, but while the refinancing need will elevate wholesale funding needs, market sources say it will likely not be a like-for-like replacement.
ASB US dollar tier-two attracts strong offshore interest
ASB Bank is the first New Zealand issuer to price an offshore tier-two deal under the Reserve Bank of New Zealand’s new bank-capital definitions. The US dollar transaction was popular with investors – about five times oversubscribed – and priced tighter than similar tier-two debt issued by Australia’s big-four banks.
KANGANEWS SUSTAINABLE FINANCE H2 2022
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