A more optimistic tone has emerged in New Zealand’s securitisation market on the back of two primary-market transactions and the emergence of a potential large-scale new issuer. The tone is markedly different from the first half of the year, when market participants did not expect to see deal flow in 2020.
Transpower says a higher coupon attracted a strong retail bid for its second green bond, with this investor segment taking a relatively higher proportion of the book than is typical for the issuer. The deal also represents a further step for Transpower toward a green debt portfolio, which expects to print another bond by year’s end.
The New Zealand Financial Markets Association’s recently published debt capital market guidelines give participants a roadmap to greater clarity and best practice, particularly for new and infrequent issuers. The guidelines are part of the association’s push to develop New Zealand’s debt market, making it more inclusive.