International Finance Corporation
Pent-up demand led International Finance Corporation (IFC) to bring its first Kauri deal in more than a year on 28 August. According to deal sources, offshore investors have been less prevalent in Kauri deals during 2018, including in IFC’s transaction. However, issuer and intermediaries suggest the extent of domestic demand is sufficient to support further deal flow.
Kauri issuance rebounded in May-June as more than NZ$2.6 billion (US$1.7 billion) priced, including a rare 10-year transaction of record volume for the tenor. Technical demand drivers are at play but intermediaries suggest positive conditions could remain even as a supply gap closes in the second half of 2020.
On 12 June, International Finance Corporation (IFC) (AAA/Aaa) launched a minimum A$100 million (US$68.5 million) increase to its April 2035 Kangaroo social bond. Indicative price guidance for the forthcoming deal is 51 basis points area over semi-quarterly swap, equivalent to 34.75 basis points area over Australian Commonwealth government bond.
SSA Yearbook 2019
The annual guide to the world's most significant supranational, sovereign and agency sector issuers.