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.
The weeks prior to the end of the Reserve Bank pf Australia’s term funding facility offer a window of opportunity for offshore financial institutions to execute Australian dollar deals before technical conditions potentially change, lead managers. A recent Kangaroo from Barclays provides a compelling case study.
On 12 May, Barclays (BBB/Baa2/A) launched its multi-tranche senior-callable Australian dollar deal. The transaction includes any or all of six-year non-call five-year tranches in fixed-to-floating and floating-rate format, and an 11-year non-call 10-year tranche in fixed-to-floating rate format. Indicative price guidance is 125 and 170 basis points area over swap benchmarks.
On 11 May, Barclays revealed plans for a potential new Australian dollar denominated, multi-tranche transaction. The offer includes any or all of six-year non-call five-year tenor, in fixed-to-floating rate and floating-rate note formats, and an 11-year non-call 10-year, fixed-to-floating rate, senior-callable tranche. Initial price guidance is 125 and 170 basis points area over swap benchmarks.
investing with impact Yearbook March 2021
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