The US private placement market, known for its reliable liquidity even in periods of volatility, did more than stay open throughout COVID-19. Record volume printed in 2021 even as a normally reliable issuance source, Australasian corporate borrowers, leaned more on domestic funding options. Australian and New Zealand issuers are now drifting back toward USPP issuance.
Bank of Queensland returned to euro covered-bond issuance on 31 May, using a window between its half-year results and the European summer market slowdown to deliver what the bank says is a highly competitive cost of funds. The issuer says it had no qualms about execution that was timed to suit its own funding strategy.
The sustainable finance market has come a long way in a relatively short time. Less than a decade has passed since the first issuance of Australian dollar green bonds and, in that time, volume has grown, the number of active issuers and investors has soared and new products have risen to prominence. The goal of BNP Paribas is to stay on top of developments to help guide its clients through this critical period.
While the world wrestled with accepting inflation in late 2021, the Reserve Bank of New Zealand led, abandoning QE in July as its economy recovered from the pandemic-induced slowdown. At the KangaNews New Zealand Debt Capital Market Summit in December 2021, a collection of international high-grade market participants shared their perspective on the global economic backdrop and the year ahead.
Intermediaries say execution strategy will play a more important role in international funding for Australian corporate borrowers in 2022 as spreads widen, investor allocations become more selective and new sources of market volatility continue to emerge.
Reliance Rail says the addition of sustainability-linked features to its green loan will help it achieve environmental goals beyond its existing asset pool, such as energy consumption targets and emissions reduction. Any margin savings will be directed to sustainability improvements rather than reducing funding costs, which the borrowers says is a distinguishing feature of its facility.