The economy-wide impact of COVID-19 has affected Australian corporate borrowers in a host of ways. But access to funds has generally remained in place as issuers navigate a path back to some type of normality – even for those in the most affected sectors.

While true corporate deals in the Australian market last year did not reach the heights of 2017, a second-half resurgence brought record volume from triple-B issuers and hints that extended duration is on the cards once more. The question is whether the corporate space will continue to grow in 2020 or lose momentum as it did in 2018.

KangaNews is proud to present the winners of the institutional and deal categories in the KangaNews Awards 2019. After an extensive voting and verification process, KangaNews can confidently say its results reflect a true market view on the outstanding performers of 2019 in the Australian and New Zealand debt markets.

On 25 October, Virgin Australia revealed plans for a potential five-year, Australian dollar denominated, unsecured ASX-listed deal. Morgan Stanley, Morgans Financial, Ord Minnett and UBS have been mandated to engage investors in Sydney, Melbourne and Brisbane in the week beginning 28 October.

Virgin Australia (Virgin)’s second Australian dollar bond deal built on the success of its initial transaction and capitalised on an increasingly positive market backdrop to broaden the issuer’s capital-markets footprint, deal sources say. The new transaction allows the issuer to refinance US dollar liabilities in its home currency.

On 25 February, Virgin Australia (Virgin) (B+/B2) launched a new, Australian dollar denominated five-year non-call three-year benchmark transaction. The deal has an indicative coupon in the area of 8.125-8.25% and is expected to price on the day after launch. The deal is expected to be rated B/B3.

On 14 February, Virgin Australia (Virgin) (B+/B2) revealed plans to meet debt investors regarding a potential Australian dollar denominated transaction. The meetings will take place in Singapore and Sydney on 19 February and Hong Kong and Melbourne on the following day. ANZ, HSBC and UBS have been mandated to arrange the meetings.

Virgin Australia (Virgin) priced the Australian market’s first single-B rated, high-yield public bond on 18 May. Deal sources cite a broad spectrum of investor participation as evidence of growing demand for this product, but they caution that the success of similar deals will, like Virgin’s, be dependent on the credit.