The Australian market continued to embrace longer corporate tenor in the week ending 19 April. Sydney Airport returned to the public domestic market for the first time in more than a decade while Vicinity added sector diversity with another case study from the property sector – both issuers printing at 10-year tenor. Elsewhere, the most notable deal activity was ongoing deal activity in the securitisation space.

Sydney Airport’s largest-ever transaction in the Australian dollar market – which is also its first public domestic deal since 2011 – provides another sign of growing corporate borrower confidence in the local funding option. The chance to access extended tenor at volume in line with a global core market benchmark print clearly moved the dial for an issuer that has historically been wary of the reliability of domestic issuance.

Following its first Australian dollar deal in seven years, Adelaide Airport says re-engaging with the local investor base was a top priority as it embarks on a new capex plan and plans for upcoming maturities. While issuance has slowed since a hectic end to Q1, the deal book demonstrates ongoing robust demand for Australian dollar corporate credit.