From small to large steps, Telstra makes a giant leap in domestic market
Lead managers on Telstra Corporation (Telstra)’s A$1 billion (US$752 million) multi-tranche domestic deal tell KangaNews that following a succession of smaller steps the domestic market has taken a giant leap forward with this latest transaction. According to KangaNews data, the deal is Telstra’s largest-ever domestic transaction and it contains the biggest 10-year non-credit-wrapped tranche issued by a nonfinancial corporate into Australia.
Japan-origin TLAC in Australia: an issuer view
On 23 March Sumitomo Mitsui Financial Group (SMFG) printed A$1 billion (US$764.6 million) of five-year notes in a SEC-registered total loss absorbing capacity (TLAC)-compliant benchmark issue. The transaction is the first Australian dollar Asian-origin TLAC-eligible deal and SMFG is the first-ever non-US-domiciled issuer to print a deal in Australian dollars in SEC format.
Push factors and internal culture likely drivers of further corporate green-bond growth
In the wake of Australia’s first domestic true-corporate green-bond deal, the transaction’s arranger says internal and external drivers point to growing momentum in the asset class. Investa Office Fund (IOF) was well positioned to be the first domestic mover, but it is far from unique as a potential issuer – especially in the property sector.
Significant oversubscription greets Latitude’s step into the unknown
Appealing pricing and extensive predeal marketing enabled Latitude Finance Australia (Latitude) to attract a multiple-times oversubscription to all tranches of its debut credit-card asset-backed securities (ABS) issue, according to deal sources. This was despite the combination of a new name, new collateral type and a new deal structure for the Australian market.
Read more: Significant oversubscription greets Latitude’s step into the unknown
CommBank sees untapped potential in green bonds following its issuance debut
Having printed its first green bond on 28 March – also the largest to date by a bank in Australia – Commonwealth Bank of Australia (CommBank) says global demand and increasing issuer engagement with the asset class point the way to significant future growth. CommBank issued A$650 million (US$497.1 million) of five-year climate bonds including fixed and floating tranches.