Discussions at the KangaNews Sustainable Debt Summit 2021 virtual event in June suggest market engagement with environmental, social and governance issues continues to deepen. Norms in sustainability-linked instruments are quickly solidifying while developments in accounting, disclosure and stakeholder engagement are also contributing to momentum.
Incitec Pivot has completed a sustainability-linked loan (SLL) facility, a development the borrower and its sustainability structurer say demonstrates how this type of financing can be relevant even for companies in hard-to-abate sectors. In a further development for the Australian SLL market, G8 Education also recently signed a new facility with KPIs primarily linked to social outcomes.
On 10 November, Incitec Pivot and its subsidiary, Dyno Nobel, announced a tender offer to buy back A$200 million (US$145.6 million) in aggregate of the former’s A$450 million outstanding March 2026 maturity and the latter’s US$400 million outstanding August 2027 line.
Incitec Pivot priced its first Australian dollar deal in more than five years on 8 March. The issuer cites the increased availability of seven-year debt as a key factor in its return while deal sources say the rarity of the credit led to significant demand for the transaction.
On 7 March, Incitec Pivot (BBB/Baa2) launched a new, seven-year, Australian dollar denominated benchmark domestic transaction. The forthcoming deal has indicative price guidance of 245-250 basis points area over semi-quarterly swap. Pricing is expected on 8 March, according to joint lead managers ANZ and Commonwealth Bank of Australia.