Asian Development Bank
For many supranational, sovereign and agency (SSA) borrowers, providing credit to aid economies through the COVID-19 crisis goes to the core of their purpose. Even those experiencing little impact on the lending side are now dealing with substantially changed capital markets.
On 18 February, Asian Development Bank (ADB) (AAA/Aaa/AAA) launched a new, seven-year Kangaroo bond with indicative price guidance of 21 basis points area over semi-quarterly swap and 21.9 basis points area over Australian Commonwealth government bond. The minimum A$300 million (US$232.5 million) deal is expected to price on the day after launch and is being led by RBC Capital Markets, Nomura and TD Securities.
The Kauri market opened for 2021 in the final week of January with two transactions – a tap from Kommunalbanken Norway (KBN) followed by a new line from Asian Development Bank. Both came at tenor longer than the New Zealand market’s traditional five-year sweet spot and intermediaries say there is plenty of local demand, but relative pricing remains challenging for further supply.
On 28 January, Asian Development Bank (ADB) (AAA/Aaa/AAA) launched a new, seven-year Kauri bond line, with minimum volume of NZ$300 million (US$214.6 million). The forthcoming deal is being marketed at 24 basis points area over mid swap, equal to 34.4 basis points area over New Zealand government bond. Pricing is expected on the day after launch according to lead managers ANZ, Commonwealth Bank of Australia and TD Securities.
SSA Yearbook 2020
The annual guide to the world's most significant supranational, sovereign and agency sector issuers.