Asian Development Bank
The Kauri market has been supporting significantly sized deals in recent weeks, illustrated by Asian Development Bank (ADB)’s most recent foray into the market. Pricing and demand fundamentals are currently coaxing supply from offshore issuers, with domestic buyers the primary drivers of demand.
Global supranational, sovereign and agency issuers continue to strike new ground in the Australian dollar sustainability-bond sector. A trio of deals printed in January highlight the sector’s leadership position, offering Australia its largest-ever SSA green bond, further supply to the nascent social-bond space and a rare renewable-energy bond.
On 27 February, Asian Development Bank (ADB) (AAA/Aaa/AAA) launched a minimum A$100 million (US$71.8 million) increase to its June 2029 Kangaroo bond. The forthcoming deal has indicative price guidance of 42 basis points area over semi-quarterly swap, equivalent to 57 basis points area over Australian Commonwealth government bond. Pricing is expected on the day after launch, according to lead manager TD Securities.