Australian M&A a ‘tale of two halves’ as bankers face new normal

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Looking back at 2022’s market for deals, rainmakers had to come to terms with geopolitical woes, depressed company valuations and rising rates.

in CWP Renewables this month – have left the investment banking market enamoured at the promise of similar mandates between the corporate and institutional investor market in 2023.

“People might see the energy transition as a utilities play, but it is a larger macro trend.

But clearing the bottleneck of transactions in the US should free up banks’ balance sheets and make way for the financing needed for jumbo Australian M“Once they’re cleared, that should open things up, and once the terminal rate gets settled, the market can readjust to structurally higher rates, structurally higher inflation, Mr Love said. “I think you can underwrite loans on the right risk-adjusted basis, and the market will reset to that.

A record number of private credit investors have entered the space, Holly Clements, UBS’ head of leveraged capital markets, toldShould these financings be syndicated, bankers are optimistic new deals, with less debt and better credit ratings can pass through capital markets with relative ease. “There has been a flight to quality across recent issuance in the US. There will be greater scrutiny applied going forward to certain [debt] structures. I think there will be a natural movement towards shaping your capital structure,” Ms Clements said. “That, by definition, would contain slightly more constrained leverage structures.”

 

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