A recent Sydney Airport bond issue in Canada could unleash more Australian deals  in the maple bond market, according to lawyers. “Interest in accessing the Canadian market is an exciting development," said Mallesons partner, Philip Harvey.

The Canadian market is not as large as the neighbouring US market, but is considered to be an easier market to access for Australian corporates and banks looking to raise funds, says Harvey. “The process involved in accessing the market, compared to other markets, was relatively easy, and the easier it is to access, along with an appropriate price, the more attractive it is to corporates and other issuers,” he told ALB.

Sydney Airport raised CAS$225m (A$217m) through the Maple bond market, having already raised US$500m last year through a guaranteed senior secured note issue in the US 144A bond market. “I think what this deal means is that Canada and the Maple bond market are now part of the mix,” added Harvey.

Patrick Lowden, partner at Freehills, told ALB that while Canada is a smaller market, there are some very big funds there. However, when deciding on where to issue bonds, Lowden says corporates will decide based on where the best opportunities are at a particular time. “A number of Australian corporates have gone there, but it’s not one of the usual markets that we see corporate or banks going to,” he said.

Head of US capital markets team at Baker & McKenzie Australia, Andrew Reilly, says Australian corporate and banks are increasingly tapping new bond markets to raise funds, because of the need be diverse. “Diversification of funding sources is increasingly important post GFC,” said Reilly. “Those companies which were relying solely on Australian finance really struggled during the GFC.”

Recent bond issues: