PDI: ‘Senior debt: Australia’s banks burst the bubble’
With the ‘big four’ under regulatory pressure, non-banks see an opportunity – especially in real estate.
Christie Ou surveys the scene
The Australian debt market experienced something of a watershed last month when Visy Industries, the Melbourne-based packaging giant led by billionaire Anthony Pratt, secured $A150 million ($114 million; €105 million) in long-term debt from the country’s biggest superannuation fund Australian Super and fund manager IFM Investors.
The 10-year loan, arranged by Westpac, is one of the first to involve super fund investing in a large, privately owned Australian company. It is also indicative of a larger trend whereby non-bank lenders are taking a more prominent role in the market.
“If you look at the size of the Australian loan syndications market, 5 percent of that is contributed by nonbank lenders. If you look back five years ago, their share would only have been 2-3 percent. Their share is growing and will continue to grow,” says John Corrin, global head of loan syndications at Australian banking group ANZ.
Click here to read the article in full as published in Private Debt Investor Magazine, May 2017 issue.