The show goes on for NAB as it tests demand for major-bank AT1
National Australia Bank (NAB) launched an Australian dollar additional tier-one (AT1) capital transaction on 11 February, its first in more than two years. The deal’s arranger predicts robust demand despite various headwinds, based on recent secondary-market activity and appropriate primary-market pricing.
Read more: The show goes on for NAB as it tests demand for major-bank AT1
Teachers Mutual takes responsible-investment certification to a new level
Teachers Mutual Bank (Teachers Mutual) has taken its commitment to responsible investment a step beyond its peers, by having Responsible Investment Association Australasia (RIAA) certify its retail deposits, mortgages and wholesale funding. According to Teachers Mutual, the move could generate more than A$3.5 billion (US$2.5 billion) of socially responsible investments for the bank by 2021.
Read more: Teachers Mutual takes responsible-investment certification to a new level
Dropping the shades
Green-bond issuance in Australia is growing, though supply remains dominated by high-grade and bank issuers. Local investors say labelled issuance is only one part of a more complex picture, which sees the Australian buy side wrestling with measuring the impact of its allocations in an environment of growing demand for ethical investment.
Offshore investors return to Kauri market in EDC deal
Offshore investor participation surprised to the upside in Export Development Canada (EDC)’s latest Kauri deal. While the rates differential between the US and New Zealand has tended to dampen international demand for New Zealand dollars of late, the Canadian issuer found an uptick in the global bid thanks to a favourable relative-value proposition.
ESG debt in Australia: progress report
In November 2018, KangaNews brought together experts in sustainable debt from each of Australia’s big-four banks to discuss the state of the local market and its growth prospects in the year ahead. Participants acknowledge that development has not been exponential so far but point to a vast quantity of work going on behind the scenes and the challenges involved with changing attitudes, working without reliable political guidance and establishing market infrastructure.