Australian debt capital market participants say the local banking system regulator’s proposal to scrap additional tier-one debt from the capital stack and replace it with tier-two securities and equity by 2032 is manageable. They believe the market is well-positioned to take down the implied additional volume of subordinated issuance, though there are notable risk factors to a move that will make Australia stand alone.
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NAB drops three-year benchmark into pre-blackout window
National Australia Bank priced its latest senior trade in a quiet domestic primary window and during a global rates sell-off – which, deal sources say, supported investor participation in the book. Australian primary credit supply seems set to remain spotty as bank issuers enter results blackout and intermediaries highlight likely difficult windows in the remainder of Q4, as the US election and key central bank meetings fall in the same few trading days.
SBS Bank adds retail supply to New Zealand market in volatile rates week
SBS Bank raised NZ$125 million from an April 2030 retail issue that priced on 3 October. Institutional support supported a positive outcome and an upsize despite the coupon falling fractionally short of a level that had been identified as a hurdle for the retail buyer-base and a particularly volatile market environment during execution.