Mercury
New Zealand corporates return to green-bond market
As well as a clutch of mainstream corporate bond deals, the New Zealand market welcomed the return of corporate green-bond issuance in September. Mercury reopened the market with the first deal in nearly a year, followed in a matter of weeks by a third green-bond transaction from Argosy Property.
Kiwis of all stripes flock offshore in search of pricing and liquidity advantages
New Zealand borrowers are increasingly heading offshore to fund as foreign markets offer up pricing and size outcomes that in many cases outperform those available at home. With at least seven foreign currency deals hitting screens in Q1, the pipeline started the new year in good health – and some issuers even say future activity may not be restricted to senior format.
Mercury NZ prints A$400 million senior green bond
Turning intent into action
In November 2022, KangaNews and Westpac hosted the New Zealand Sustainable Finance Summit as an in-person event in Auckland, for the first time since 2020. Speakers discussed the pressing need to turn good intentions and high-level thought into action on climate transition.
New Zealand retail not chasing green – but issuers still keen
The New Zealand corporate market provides as clear a sign as any that investor demand is often not the primary driver of borrower decisions to pursue sustainability-labelled debt issuance. While local retail investors – the most active corporate bond buyers in 2022 – may not be demanding labelled product, however, there are still plenty of signs of growing market momentum.
New Zealand issuers flock to ESG debt funding
Corporate and government-sector issuers from New Zealand took massive steps forward in sustainable debt funding in the last quarter of 2021 as a flood of transactions came to market. Issuers tapped the domestic, Australian and euro bond markets for use-of-proceeds funding while the steady flow of sustainability-linked loan facility completions also continued.
