Australia’s largest sovereign and semi-government issuers say their funding tasks remain manageable despite difficult market conditions. Participants at the third annual KangaNews-Westpac Institutional Bank Australian high-grade roundtable discussed key issues including changing demand patterns and how different formats, such as floating-rate notes and sustainability issuance, can be used to weather higher volatility.

Victoria’s latest state budget outlined a significant improvement in forecast state finances following the troubled environment of the pandemic. The state’s Melbourne-based treasurer, Tim Pallas, shares his view on the outlook.

Treasury Corporation of Victoria exploited bank balance sheet demand for floating rate notes to print its largest-ever syndicated transaction in a period that has seen little of this type of issuance from semi-government names. The issuer says floating-rate supply forms part of its flexible funding strategy.

It has been a challenging two years for Australian government-sector issuers, from the spiralling funding needs and dislocated markets of the early days of the COVID-19 pandemic through choppy economic outcomes in 2020-21 and the growing spectre of inflation in global markets. Nonetheless, entering the new year these issuers say markets are conducive and their funding tasks manageable, while ever-increasing sophistication of sustainability-aligned issuance is helping maintain investor engagement.

Key data and information on 15 high-grade lenders active in Australia and New Zealand, including programme information, funding strategy, debt data and issuer insights.