Blockchain’s potential on show in world-first deal
World Bank priced an historic bond using blockchain technology in Kangaroo format, on 23 August. Bond-I [blockchain operated new debt instrument] is the world’s first blockchain bond. The technology is still nascent, but deal participants are confident in the security of the platform and adamant of its potential to bring increased efficiency and transparency to all parts of the transaction process.
Sun not setting for Japanese investors in Australian dollar product
In 2017, KangaNews and Mizuho Securities hosted their first-ever roundtable discussion in Tokyo for Japanese investors in Australian dollar debt. A year later, a larger group of buy-side participants explain that, while the headwinds facing international participants in the Australian market are real, they are if anything engaged with a wider range of product than ever before.
Diversification drives ING Australia’s covered bond deal
Conducive market conditions for Australia’s financial-institution issuers extended to covered bonds on 17 August, when ING Bank Australia (ING Australia) priced its debut deal in the format. Covered bonds can be viewed as a rainy-day product however deal sources say diversification and robust investor demand were the primary drivers, rather than market sentiment.
NAB says SDG alignment smooths euro green deal process
National Australia Bank (NAB)’s first foray into the euro market for 2018 – five- and 10-year transaction in which the shorter-dated notes were green bonds – garnered a large oversubscription and tightened pricing in a busy market. Deal sources say NAB’s updated green bond programme, which now incorporates the UN Sustainable Development Goals (SDGs) played a part in the deal’s reception.
Sustainability bonds the right fit for Bank Australia’s debut
Bank Australia came to the market for its inaugural transaction on 20 August, pricing a A$125 million (US$92 million) three-year sustainability bond. The issuer tells KangaNews the nascent product was ideal for conveying its sustainability objectives, as well as attracting investors that would understand the mutual’s business model.
Read more: Sustainability bonds the right fit for Bank Australia’s debut