Stockland’s latest transaction in the domestic market was anchored by a jumbo cornerstone bid that accounted for more than half the deal. Even so, more than 50 investors supported the issuer’s decision to offer a 10-year transaction – a duration not achieved by a property-sector issuer in Australian dollars since 2021.

The KangaNews-Westpac Institutional Bank Corporate Debt Summit 2023 took place in Sydney in mid-October. A record number of delegates gathered to discuss the present and future of the Australian corporate environment, from the economic outlook and business conditions to the forthcoming impact of generative AI. In the mix was a steady but unspectacular corporate bond issuance environment that belies fundamental growth in domestic credit.

Australian dollar corporate supply in 2023 was hampered by uncertainty amid a higher interest-rate environment and a lack of immediate funding need. This caused some issuers to hold off entirely, while others accessed more competitive offshore capital markets. But by year-end, early signs pointed to a more active 2024.

Stockland Trust says it achieved what it set out to in its first domestic primary transaction since March 2021. The seven-year deal met pricing and volume expectations though the borrower notes the level of oversubscription was not as high as anticipated. Deal participants say investors have money to put to work but remain cautious about the macroeconomic environment.