Korea Southern Power picks up domestic demand in Australian dollar debut
Investor diversification and attractive pricing conditions led to Korea Southern Power’s inaugural Kangaroo deal. Deal sources say the transaction had one of the highest onshore allocations for a Korean issuer.
Mixed news for major banks on capital
The Australian Prudential Regulation Authority (APRA)’s latest update to rules covering bank additional-capital instruments could constrict liquidity in tier-two securities at the margin. Better news for the banks came from S&P Global Ratings (S&P), which has upgraded the economic component of its banking industry country risk assessment (BICRA) for Australia and with it the ratings of the big-four banks’ additional-capital securities.
Seven years suit UED for domestic benchmark return
While a recent clutch of 10-year deals in the Australian dollar corporate market has provided confidence that investor support can be found at tenor, United Energy Distribution (UED) opted for seven-year duration in its domestic return. The issuer says this tenor was the best match for its funding need.
Steeper curve drives flurry of semi-government deals
A cluster of long-dated semi-government deals priced between late September and late October. Deal sources say the semi-government curve has steepened in the long end, while a significant redemption profile in the government sector has led domestic investors strongly to support deals.
Time for issuers and investors to step up engagement on benchmark reform
End users can no longer ignore the domestic and international process of reforming benchmark rates, according to speakers at the International Swaps and Derivatives Association (ISDA)’s annual Australian conference in Sydney. The local market is less than halfway through its own transition and the main concern is lack of engagement from many issuers and investors.
Read more: Time for issuers and investors to step up engagement on benchmark reform