Allens has successfully advised on the inaugural bond issuances for both Vonovia SE and The Weir Group, marking a significant achievement for the firm’s debt capital markets division. This development concludes a productive year for Allens, indicating a growing interest in offshore credit markets. The firm has been actively involved in multiple Kangaroo bond programmes and issuances, reflecting a robust demand for Australian dollar-denominated corporate bonds.
Market Dynamics and Future Outlook
According to James Darcy, who leads Allens’ debt capital markets team, the appetite among investors for corporate bonds in Australian dollars remains exceptionally strong. “Based on recent deals, investor appetite for Australian dollar corporate bonds remains exceptionally strong,” Darcy stated. He also highlighted expectations for continued growth in the Australian dollar corporate bond market, anticipating it will remain an attractive option for global issuers into 2026.
The ongoing domestic demand, supported by superannuation inflows and sustained interest from investors based in Asia, is expected to drive liquidity and enhance competitive execution. “We expect more European and UK corporates to tap the Kangaroo market, alongside growing activity in hybrids and structured products, as issuers seek diversification and optimise capital structure,” Darcy added. Allens is committed to assisting clients in navigating these evolving market dynamics to achieve successful outcomes.
Acknowledgement in Industry Awards
In 2025, Allens played a crucial role in advising arrangers on notable transactions that received recognition at the 2025 KangaNews Awards. Lendlease Finance’s $450 million 5.20% perpetual non-call hybrid was awarded Australian Innovative Deal of the Year, while Ampol’s $500 million 5.85% 30NC8.25 subordinated issue was recognised as Australian Dollar Corporate Bond of the Year.
Beyond these transactions, Allens’ debt capital markets team also provided advisory services for several other significant issuances in 2025. This includes assisting the dealers in establishing the Australian dollar debt issuance programme for the Republic of Indonesia, advising leading US energy company NextEra Energy on a dual-tranche $775 million subordinated hybrid bond issuance, and guiding the Clean Energy Finance Corporation on a substantial subordinated hybrid funding transaction.
With ongoing developments in the bond market, Allens remains at the forefront of advising clients on navigating complexities and leveraging opportunities within a dynamic financial landscape.
