The events of 2020 could have tested ING Bank’s commitment to building its wholesale balance sheet in Australia. Instead, says Charles Ho, the bank’s Sydney-based managing director and head of wholesale banking, it has used its sectoral expertise and strong local retail brand to grow its exposure – and prepare for a further expansion of debt-market coverage.
Australian banks turned defensive in Q2, printing a flurry of covered bonds as market volatility continued to dominate funding conversations. Issuers say liquidity is still readily available but tenor has shortened.
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.
ING Bank Australia leaned on European and UK investors to place the seven-year tranche of its latest covered bond, the first Australian dollar deal in the format to feature this tenor since 2005. The issuer says the maturity attracted new investors and supported successful execution.