Covered bonds provide Australian majors path back to benchmark issuance

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Covered bonds provide Australian majors path back to benchmark issuance

Covered bonds provide Australian majors path back to benchmark issuance

Apr 04 2022

This article, published by KangaNews reports that rising geopolitical and inflation risks created turbulent market conditions in March, leading Australia’s big-four banks to push on with their funding tasks via covered-bond issuance.

Three of the majors and one of their New Zealand subsidiaries issued covered bonds in recent weeks, targeting euro or sterling. ANZ Banking Group and Westpac Banking Corporation printed €1.75 billion (US$1.9 billion) three-year and £700 million (US$922 million) four-year covered bonds on 8 March. National Australia Bank followed the day after with a four-year €1.5 billion deal. ANZ New Zealand was last to market, issuing a €750 million five-year covered bond on 14 March.

The covered-bond deal was particularly significant for ANZ as – unlike the other major banks – it has not completed any benchmark wholesale issuance since the end of the Reserve Bank of Australia’s term-funding facility (TFF) in June 2021 and has not issued an unsubordinated benchmark since January 2020.

Read the full article from KangaNews >