RBA changes boost foreign bank issues

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By Frank Jackman
04 Jun 2020

Two recent policy changes from the Reserve Bank of Australia (RBA) spurred a pair of foreign banks to scoop A$3.2bn ($2.2bn) from the bond market this week. An expansion of repo-eligibility and a term funding facility for domestic banks have freed up the funds to drive the bumper deals, according to a banker at one of Australia's big four banks.

On May 5, the RBA broadened repo-eligibility for non-authorised deposit-taking institutions to include anything issued with an average credit rating higher than triple-B minus, down from the previous triple-A rating, making unsubordinated Australian dollar bonds from foreign banks eligible.

Sumitomo Mitsui Banking Corp was a beneficiary this week ...

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