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.
African Development Bank (AfDB) made its first foray into the Kauri market in more than four years on 21 February, with a rapidly launched and priced 10-year socially responsible investment (SRI)-linked deal. The issuer and lead say the deal was made possible by reverse enquiry from Asia, and insist the theme and maturity present a positive development for the market.
On 21 February, African Development Bank (AfDB) launched a minimum NZ$100 million (US$68.5 million) 10-year socially responsible investment (SRI) Kauri bond. The forthcoming deal has indicative price guidance of 43.3 basis points area over mid swap. Pricing is expected on the day of launch, according to lead manager Daiwa Capital Markets.
BNG Bank (AAA/Aaa) launched a minimum A$15 million (US$10.7 million) increase to its July 2029 ‘renewable-energy’ Kangaroo bond on 21 February, via Daiwa Capital Markets. The forthcoming deal is being marketed at 54 basis points area over semi-quarterly swap and is expected to price on the day of launch.