TCorp takes Australia’s green-bond market to the next level
The scale of New South Wales (NSW)’s infrastructure task and its well-defined links with sustainable outcomes – in both the environmental and social arenas – enabled NSW Treasury Corporation (TCorp) to debut in the green-bond market with a blockbuster deal. TCorp issued A$1.8 billion (US$1.3 billion) of 10-year green bonds on 9 November.
Read more: TCorp takes Australia’s green-bond market to the next level
Tier-two the focus of APRA’s first announcement on “ALAC”
Australia’s big-four banks could triple their issuance of tier-two instruments to meet the local equivalent of a total loss-absorbing capacity (TLAC) regime, according to the Australian Prudential Regulation Authority (APRA). The Australian regulator proposed an updated capital-adequacy regime on 8 November, suggesting tier-two will carry most of the weight of a 4-5 per cent increase in total capital requirement for the majors.
New horizons for SSA sector as market changes bite
Leading supranational, sovereign and agency (SSA) issuers have shared insights into the changing shape of their sector, with a focus on benchmark reform, the issuance-currency mix and evolution in sustainable debt markets. Kangaroo issuance faces some headwinds at present but SSAs see no reason why the market cannot rebound in 2019.
CommBank expects strong demand for PERLS XI
Commonwealth Bank of Australia (CommBank) launched its second additional tier-one (AT1) hybrid transaction of 2018 on November 1. Unlike its deal in March, which was focused on new money, the issuer says the priority for PERLS XI is to roll investors from its December AT1 call into this transaction. The bank expects strong demand on this basis.
Korean Kangaroo window still open as Kexim notches tight price
The Export-Import Bank of Korea (Kexim)’s A$500 million, five-year floating-rate note deal ratcheted pricing for Korea-based public issuers closer to that of Australian major-bank benchmarks. Deal sources say issuer, tenor and product scarcity were contributing factors, as well as improving investor confidence in Korean credit.