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A slew of corporate market bond deals waiting on the sidelines since 2 April could be greenlit next week ahead of major-bank half year results, sources tell KangaNews – though issuance conditions remain on close watch and the near-term execution window may be brief.
A three-day trading week in Australia and New Zealand coupled with ongoing market volatility meant predictably slim pickings in the primary market. No new transactions came to market with just sovereign bond tenders to maintain flow.
A seven-year deal from Sydney Airport re-opened Australia’s corporate bond market on 16 April, launching and pricing intraday after strong support from domestic accounts gave confidence to the borrower, deal sources say. There is also growing optimism that the pipeline of deals currently on hold should see some movement, though the holiday and data calendar poses challenges.
Sporadic deal flow recommenced in the Australian dollar market in the pre-Easter week, primarily in defensive sectors and formats. Sydney Airport was the exception, printing a new seven-year deal it mandated the day before the latest round of tariff turbulence kicked off.
South Australian Government Financing Authority took a conservative approach to funding, opting for a defensive, short-dated floating-rate deal instead of a longer-dated transaction to reopen the Australian primary market on 14 April, after days of market inactivity. The transaction triggered a spree of new deal announcements, including from CPPIB Capital, which will return to the Kangaroo market to price an October 2028 bond on 16 April, and Australian Capital Territory, which is set to test investor appetite for duration with a new October 2035 line.