Australia’s first covered bond has launched, with ANZ Bank completing a $1.25 billion issue on Wednesday.
However a Mallesons Stephen Jacques partner believes the country should introduce a European-style aggregate model to encourage covered bonds issuance by the country’s smaller authorised deposit-taking institutions (ADIs).
ANZ Bank’s five-year fixed rate transaction was priced at a spread of 115 basis points over mid-swaps, at around 60 basis points inside the level for new senior-unsecured US dollar debt issues.
The issuance followed...