Benchmark financial institution (FI) issuance returned to the Australian domestic market in July, with a total of A$3.9 billion (US$2.9 billion) printed across a trio of public three-year deals. With market volatility limiting FI issuance in preceding weeks, deal sources say a build up in investor cash as well as issuer willingness to execute at investors’ preferred tenor drove the transactions.
ING Bank Australia (ING Australia) has issued its second domestic covered-bond transaction. The borrower tells KangaNews funding diversification was the primary driver but it aims to be a regular issuer in the format.
Asian Development Bank (ADB) (AAA/Aaa/AAA) launched a new five-year, minimum A$300 million (US$200.8 million) Kangaroo bond on 7 August. The forthcoming transaction is being marketed at 35 basis points area over semi-quarterly swap, equivalent to 45 basis points area over Australian Commonwealth government bond.