Mid-curve Kangaroo market pricing has swung back into a range that some global supranational, sovereign and agency (SSA) borrowers consider to be an acceptable premium for diversification purposes, market participants say. A recent-year issuance decline shows signs of having bottomed out – though it is yet to rebound – and market users say demand for the SSA product is steadily broadening.
Anhesuer-Busch InBev (AB InBev), through its subsidiary FBG Finance, announced the results of the consent solicitation process for its outstanding Kangaroo bonds on 18 September. Bondholders granted approval for the company to substitute the existing issuer name with a new one, AB InBev Worldwide, and the consequent removal of the new issuer as a guarantor of the notes as a result of the divestiture of Carlton United Breweries by AB InBev.
Latitude Finance Australia (Latitude) upsized its most recent master-trust asset-backed securities (ABS) transaction on the back of demand that was especially supportive for lower-rated notes, the issuer says. Its next goal is further to diversity its investor base, a task it hopes will be assisted by the increasing breadth of the Australian dollar securitisation market.
On 9 September, Asian Development Bank (ADB) (AAA/Aaa/AAA) launched a new 10.5-year, Kangaroo green bond. Indicative price guidance for the forthcoming deal, which is expected to price on the day after launch, is 43 basis points area over semi-quarterly swap, equivalent to 54.25 basis points area over Australian Commonwealth government bond. Deutsche Bank, Mizuho Securities and RBC Capital Markets are leading.