Australia

The Reserve Bank of Australia (RBA) is to start quantitative easing for the first time, it said on Thursday, while earlier this week the Reserve Bank of New Zealand (RBNZ) slashed rates and the New Zealand Treasury set out plans to increase its bond market borrowing.

The recent fall in the price of oil is having a knock-on effect on non-core currency issuance. While oil dependent markets could take a hit as their currencies weaken, some net importers could benefit from a stronger currency and safe haven flows.

A window for Kangaroo issuance opened this week, as a positive move in the Australian dollar/euro basis swap helped rouse a slumbering market that had not seen a deal for a fortnight. In spite of unstable conditions, SSAs entered the market on Monday and Tuesday, with a trio of regular borrowers tapping six lines for a combined A$575m ($364m).

The Reserve Bank of Australia (RBA) on Tuesday slashed rates to a new low of 0.5% in response to the financial impact of the Covid-19 coronavirus outbreak. As Aussie dollar rates move lower, the introduction of quantitative easing is on the cards.

Credit Suisse has hired a head of environmental, social and governance equity research for Asia Pacific, a newly created position at the bank.

A pair of Australian sub-sovereigns have made their debuts in the euro market in recent days. An attractive basis swap helped to encourage issuers to sell into unusually strong demand for long dated euro paper.

Sydney Airport has become the first borrower to issue a sustainability-linked US private placement.

Industrial and Commercial Bank of China turned to the Australian debt market on Monday to raise A$500m ($336m) through its Sydney branch.

JP Morgan has appointed two new co-heads of investment banking coverage for Australia and New Zealand, according to an internal memo seen by GlobalCapital Asia.

First Abu Dhabi Bank (FAB) issued its first post-merger Kangaroo bond on Tuesday, raising A$350m ($234.9m) — becoming the first Middle Eastern bank to tap the market in two years.

Lloyds Bank and National Australia Bank issued two very well received Sonia linked sterling covered bonds this week, taking advantage of demand spotted in a deal issued by Royal Bank of Canada last week.

Moody’s Investors Services has beefed up its coverage of environmental, social and governance (ESG) factors, naming a veteran analyst as its first global head of ESG.