SMBC Sydney reflects on its record-breaking domestic deal
Sumitomo Mitsui Banking Corporation Sydney Branch (SMBC Sydney)’s latest transaction was the largest-ever Australian dollar deal from a bank with offshore parentage. It was also the largest credit deal since the onset of the COVID-19 crisis.
Read more: SMBC Sydney reflects on its record-breaking domestic deal
GBP SBP update pushes sustainable debt frontier amid pandemic and recovery
The Green and Social Bond Principles (GBP SBP) is broadening further the scope of its focus on sustainability in fixed-income markets, with an update to its social bond principles (SBPs) and the launch of sustainability-linked bond principles (SLBPs). The new SLBPs are designed to provide the impetus for more entities to consider sustainable financing options, while the update to the SBPs is particularly relevant in the context of addressing the COVID-19 pandemic and the coming economic and social recovery.
Read more: GBP SBP update pushes sustainable debt frontier amid pandemic and recovery
Global FIs step into Australia’s big-four bank supply void
The Australian dollar market hit a sweet spot for global financial institution (FI) borrowers in the second half of May despite the ongoing absence of the biggest local issuers. Intermediaries say the supply gap has caused a technical pricing squeeze that attracts issuers, while offshore FI pricing remains attractive to real-money investors relative to local names.
Read more: Global FIs step into Australia’s big-four bank supply void
Spark’s Australian dollar return demonstrates growing corporate confidence
Spark Finance is the first New Zealand domiciled corporate issuer to execute a public debt capital markets transaction in 2020 – and it chose Australia for its 28 May deal. The borrower says establishing and maintaining a funding presence in Australian dollars is a key component of its debt strategy.
Fitch highlights growing risks offsetting Australia’s sovereign strength
Australia’s sovereign rating will be tested in the coming months as the ramifications of the COVID-19 crisis play out through the economy, according to Fitch Ratings. A newly placed negative outlook on Australia’s AAA rating relates to significant downside risks in the domestic economy, including household debt, as well as global factors such as newly levied trade barriers.
Read more: Fitch highlights growing risks offsetting Australia’s sovereign strength