Macquarie University scores with sustainability bond in domestic market return
Macquarie University became the third issuer of sustainability bonds in the Australian market, and the first university to price a dual-tranche deal, with its A$250 million (US$179.5 million) transaction priced on 29 August. With impact reporting still in its relative infancy in Australia, the university says the transaction provided the opportunity to show leadership in this area.
Read more: Macquarie University scores with sustainability bond in domestic market return
Unanswered questions
The Australian base rate has been on a trend incline throughout 2018, driving up banks’ cost of funds and some lending rates. Debate is raging about whether the trend is structural or cyclical, for how long it will last, how far it could go and the wider consequences.
Wholesale tier-two investors roll out the red carpet for Suncorp
Suncorp Group (Suncorp) achieved a blowout orderbook for its wholesale tier-two transaction priced on 29 August. According to the issuer, the robust investor response was the result of scarcity of product, transparent execution strategy and an influx of liquidity in the market.
Green factor and mid-curve volume drive KBN to record-breaking Kangaroo deal
A green overlay and limited mid-curve supply in Australian dollars from supranational, sovereign and agency (SSA) issuers in 2018, contributed to Kommunalbanken Norway (KBN) achieving its largest-ever Kangaroo bond, deal sources say. In addition, the orderbook shows the extent to which Australian domestic fund managers continue to seek socially responsible investments.
Domestic investors step up for IFC’s return to Kauri issuance
Pent-up demand led International Finance Corporation (IFC) to bring its first Kauri deal in more than a year on 28 August. According to deal sources, offshore investors have been less prevalent in Kauri deals during 2018, including in IFC’s transaction. However, issuer and intermediaries suggest the extent of domestic demand is sufficient to support further deal flow.