Reflect and reposition
After hopefully overcoming the worst of the COVID-19 pandemic, the Australian securitisation industry is taking stock of a period of resilience and a reshaped competitive landscape. Top of mind for market participants are the way crisis response has changed the cost of funding unevenly for different issuer types and mooted changes to responsible-lending rules.
Green PPP evidence of critical mass in green finance
Canberra Metro executed Australia’s first green loan for a public-private partnership (PPP) with a refinancing of Canberra’s electric light-rail system. Deal sources say the loan is not structurally unique from other certified green loans, but the application of labelled green finance to PPPs potentially opens a large pipeline of opportunities for banks and investors that are increasingly focused on green assets.
NZDM reveals further decrease to 2020/21 borrowing programme
On 16 December, New Zealand Debt Management (NZDM) revealed a NZ$5 billion decrease (US$3.5 billion) to its 2020/21 financial year borrowing requirement, following the New Zealand Treasury’s half-year economic and fiscal update. The reduction means gross New Zealand government bond (NZGB) issuance in 2020/21 is expected to be NZ$45 billion.
Read more: NZDM reveals further decrease to 2020/21 borrowing programme
KfW delves deeper into sustainability
On 16 December, executives at KfW Bankengruppe reviewed the 2020 funding year and shared their expectations for capital markets issuance to fund promotional activities in the year ahead. While recognising that investors are increasingly looking at issuer-level sustainability credentials, and working to enhance these, KfW also expects increased issuance of green bonds in 2021.
Investors embrace Australian universities as COVID-19 dust starts to settle
Along with travel and tourism, Australian universities have been one of the hardest hit sectors from COVID-19. But as a clearer picture of the industry’s outlook emerges, investors were comfortable to participate in domestic deals from Western Sydney University (WSU) and University of Wollongong (UOW).