Mizuho Securities and KangaNews hosted Japanese investors at a discussion focused on why they think demand for Australian dollar investments will continue.
AT&T’s debut Kangaroo deal, which priced on 14 September, marked the return of US corporate issuance to the Australian market for the first time this year. Deal sources say cash repatriation by major US corporate names has drastically reduced offshore issuance from US credits globally, but insist AT&T’s A$1.3 billion (US$949.2 million) result demonstrates that Australia remains open for business to this type of borrower.
On 13 September, AT&T (BBB/Baa2/A-) launched a new, benchmark Kangaroo deal. The transaction is comprised of five-year tranches in fixed- and floating-rate formats with indicative price guidance of 125-130 basis points area over swap benchmarks, as well as long-seven-year and 10-year fixed-rate tranches, being marketed at 170 basis points area and 200 basis points area over semi-quarterly swap respectively.
On 11 September, AT&T (BBB/Baa2/A-) mandated Commonwealth Bank of Australia, Deutsche Bank, Mizuho Securities and TD Securities to arrange a fixed-income investor call, with an Australian dollar denominated deal to potentially follow. The call will take place on 12 September.
For the second year running, as part of KangaNews and Mizuho Securities' Japanese investor-engagement project, four bond issuers from various jurisdictions and sectors give their insights into the evolution of Japanese demand for Australian dollar issuance and how they engage with this important bid.