Domestic-investor focus for Kauri market to start 2019
The Kauri market saw its first deal of 2019 on 16 January when World Bank priced a NZ$400 million (US$270.7 million), five-year deal. Deal sources say offshore interest in Kauri deals has waned but robust domestic participation and low relative yield are accommodative to issuers.
Mining capex and GST review driving WA recovery
Western Australia (WA)’s economy is continuing an upward trajectory, with increased mining revenues and a favourable reallocation of goods and services tax (GST) among the main drivers of fiscal improvement. The state is now forecasting a fiscal surplus in 2019/20, one year earlier than expected.
ANZ deepens ties with SONIA as it returns to sterling covered-bond market
ANZ Banking Group (ANZ) became the first non-UK bank to execute a sterling covered bond referencing an alternative benchmark rate on 11 January. The deal also takes Australian-issuer engagement with alternative reference rates a step further, as the longest maturity – and by far the largest – deal to reference an alternative benchmark printed by an Australian issuer to date.
ICPF green portfolio and loan could point the way to market evolution
Investa Commercial Property Fund (ICPF) has closed a A$170 million (US$122.3 million) green loan having tagged its entire asset portfolio against the Climate Bonds Initiative (CBI) low-carbon-building criteria emission thresholds. The facility is bilateral with ANZ, but the borrower says green loans should be able to find new liquidity and pave the way for more downline green-bond issuance.
Read more: ICPF green portfolio and loan could point the way to market evolution
NZFMA opens consultation on BKBM fallback
The New Zealand Financial Markets Association (NZFMA) has opened a consultation period on the idea of supplementing – though not replacing – the existing bank-bill reference rate (BKBM) with an overnight risk-free rate (RFR). The goal is better to align the New Zealand market with evolving global norms, specifically the International Organization of Securities Commissions (IOSCO)’s principles for financial benchmarks.