QTC’s immediate requirement down, but rising in forward estimates
On 11 June, following the release of the Queensland state budget, Queensland Treasury Corporation (QTC) revealed a borrowing programme for the 2019/20 financial year of A$9.9 billion (US$6.9 billion). The requirement is a A$700 million reduction from the forward estimate in the 2018/19 forecast.
RMBS issuers flock to liquid and competitive market
Australia’s residential mortgage-backed securities (RMBS) market underwent a May and June renaissance with A$7.6 billion (US$5.3 billion) of primary supply priced. With more deals in the pipeline, intermediaries say liquidity dynamics continue to support the influx of deals. Meanwhile, a sentiment shift on the housing market is set to provide ancillary support.
SAFA leads the way for Australian ARR issuance with AONIA debut
South Australian Government Financing Authority (SAFA) came to the fore in Australian alternative reference rate (ARR) innovation on 6 June, when it priced the first-ever deal linked to the Australian overnight index average (AONIA) reference rate. Deal sources say the rate is not meant to be a replacement for bank bill swap rate (BBSW), but a part of a broader suite of products Australian issuers and investors can access better to suit their needs.
Read more: SAFA leads the way for Australian ARR issuance with AONIA debut
Local market continues to support NEXTDC’s growth
Ongoing institutional support for unrated NEXTDC has allowed the returning issuer further to bolster its capital-requirement capabilities for the future. Capacity issues are not yet a valid concern, however the issuer is making plans for when unrated supply may eventually outpace demand in the local market.
Domestic sustainability demand a vital support of SSA Kangaroo sector
Substantial growth in Australian investor participation in sovereign, supranational and agency (SSA) Kangaroo issuance is in large part attributable to the continued evolution of sustainability-linked issuance, market participants say. This could have further positive consequences in primary and secondary markets as SSAs build sustainability bond curves.