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.
On 14 February, European Investment Bank (EIB) (AAA/Aaa/AAA) launched a minimum A$200 million (US$141.7 million) increase to its August 2026 Kangaroo bond. The forthcoming deal is being marketed at 48 basis points area over semi-quarterly swap, equivalent to 60.75 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to lead managers RBC Capital Markets and TD Securities.
L-Bank (AAA/Aaa/AAA) launched an indicative A$100 million (US$72.5 million) increase to its June 2023 Kangaroo bond on 31 January. Price guidance is 48 basis points area over semi-quarterly swap or 65.5 basis points area over Australian Commonwealth government bond. Pricing is due on or before 1 February, via Commonwealth Bank of Australia, Deutsche Bank, Nomura and RBC Capital Markets.