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.
KfW Bankengruppe (KfW) returned to the Australian green-bond market on 17 July with a A$450 million (US$317.7 million) five-year green bond, four years after its inaugural green Kangaroo. Lars Ainsley, senior manager, new issues and capital markets at KfW in Frankfurt shares the agency’s perspective on green-bond market development with KangaNews.
NRW.BANK (AA-/Aa1/AAA) launched a new, five-year, minimum A$200 million (US$140.4 million) Kangaroo bond, on 18 July. Indicative price guidance for the forthcoming transaction is 52 basis points area over semi-quarterly swap, equivalent to 65.2 basis points area over Australian Commonwealth government bond. Pricing is expected on the day after launch, according to joint lead managers Deutsche Bank, J.P. Morgan and RBC Capital Markets.
On 16 July, KfW Bankengruppe (KfW) (AAA/Aaa) launched a new, five-year Kangaroo green bond, with indicative price guidance of 36 basis points area over semi-quarterly swap and 48.1 basis points area over Australian Commonwealth government bond. Pricing is expected in the near future according to lead managers Deutsche Bank, RBC Capital Markets and TD Securities.