Reset structure bolsters 10-year demand for Chorus
Chorus’s return to domestic issuance represents a significant development for the New Zealand corporate credit market, deal sources say. The 10-year transaction features a rate reset after five years, which helped stimulate retail demand. Market users expect the feature to be used again given the success of Chorus’s transaction.
New investors, not volume, the target of World Bank’s latest sustainability bond
Accessing private investors and adding scale to tangible impact investing motivated World Bank to bring its new sustainable growth bond. The issuer and its lead say the deal presented a unique opportunity to engage new investors on the UN sustainable development goals (SDGs) and World Bank’s bond issuance.
Read more: New investors, not volume, the target of World Bank’s latest sustainability bond
Acquisition leads to Transurban’s Maple return
Transurban’s recent Maple bond, the first from an Australian corporate borrower in the market since 2012, came about due to the issuer’s recent acquisition of a Canadian asset. However, deal sources suggest the market could present a diversification opportunity for other Australian corporate borrowers.
Distribution broadens for ultra-long university bonds
University of Sydney tapped into growing demand for long-dated, high-rated Australian credit with its recent 25-year deal. While it is not the first credit issuer to price ultra-long-tenor in Australian dollars, deal sources say the university’s deal achieved notably wider distribution than its predecessors and that the long-dated bid could evolve still further.
APRA announcement bolsters demand for Westpac’s senior deal
The Australian Prudential Regulation Authority (APRA)’s proposals regarding total loss-absorbing capital (TLAC) for Australian banks were a key factor driving robust demand for Westpac Banking Corporation (Westpac)’s record-breaking senior deal, the issuer says. The announcement may ultimately also support spread tightening for major-bank senior debt going forward.