Pricing in the Australian dollar supranational, sovereign and agency (SSA) market remains dislocated, intermediaries say, based on lack of alignment between domestic investor and offshore borrower pricing expectations. A number of factors are at play, not least among them the record support SSA borrowers are receiving in global markets.
On 14 January, Asian Development Bank (ADB) (AAA/Aaa/AAA) launched a new, 10-year Kangaroo deal with minimum volume of A$150 million (US$116.2 million). The forthcoming deal has indicative price guidance of 31 basis points area over semi-quarterly swap and 30.2 basis points area over Australian Commonwealth government bond. Pricing is expected on the day after launch according to lead managers J.P. Morgan, Nomura and RBC Capital Markets.
On 11 January, International Finance Corporation (IFC) (AAA/Aaa) launched a minimum A$50 million (US$38.9 million) increase to its February 2031 Kangaroo bond. The forthcoming deal is being marketed at 30 basis points area over semi-quarterly swap and 28.8 basis points area over Australian Commonwealth government bond. Pricing is expected in the near future, according to lead managers Nomura and TD Securities.