Higher Australian dollar yield has sparked recent growth in long-end Kangaroo deal flow – including a notable increase in transaction volume – market participants tell KangaNews. However, they believe it is too early to say whether more regular benchmark-sized issuance in the long end will establish itself as a consistent market feature.
The long-term trend is still in the right direction, but investors and intermediaries in Asia say regional interest in Australia has taken a step back in the past 12 months. There are still many reasons for Australian market participants to maintain and grow their Asian engagement, however.
Council of Europe Development Bank (CEB) (AA+/Aa1) launched an indicative A$30 million (US$21 million) increase to its August 2029 Kangaroo bond, via Daiwa Capital Markets on 10 May. The forthcoming deal is being marketed at 52 basis points area over semi-quarterly swap and is expected to price on the day of launch.