A quartet of Kangaroo deals priced in October took New Zealand-origin supply in the Kangaroo market to a new annual record. Deal sources say the evolution of the Australian credit market – especially increased consistency of liquidity at the 10-year mark – should keep the trans-Tasman option on the agenda for a clutch of Kiwi corporates.
Kiwibank (A/A1/AA-) launched its latest Kangaroo transaction on 20 October. The 10-year, fixed-rate deal has minimum volume of A$100 million (US$78.6 million) and indicative pricing of 157 basis points over semi-quarterly swap. It is expected to price on day of launch via ANZ.
On 19 October, Kiwibank (A/A1/AA-) mandated a potential 10-year Kangaroo transaction. The deal is expected ‘in the near future’, according to lead manager ANZ.
Kiwibank confirmed on May 29 that two instruments it initially issued as regulatory capital securities will no longer qualify as such, following confirmation of a preliminary view on these securities’ status by the Reserve Bank of New Zealand (RBNZ). The disclosure of the preliminary view caused angst in the New Zealand market in March as it came between pricing and settlement of a Kiwibank senior Kangaroo deal, which the issuer was forced to pull.
The A$175 million (US$132.3 million) transaction priced by Kiwibank (A/A1/AA-) on 7 March and that had been due to settle on 15 March has been cancelled. A statement issued by the deal’s lead manager, ANZ, says the bank “has been advised by Kiwibank… that [it] cannot proceed with the settlement” and that “regrettably no further information is forthcoming at this stage”. An issuer source declined to comment to KangaNews.