Lead managers say World Bank’s A$500 million (US$393.3 million) August 2028 Kangaroo print on 6 February was largely unaffected by the challenging backdrop which emerged after launch. However, while World Bank’s price and volume held up, renewed volatility is likely to keep other borrowers on pause – aided in part by the active start to the issuance year.
On 18 February, Emirates NBD (A3/A+) launched a new 10-year, senior-unsecured, Kangaroo transaction. Indicative price guidance for the forthcoming deal, which is expected to price on the day after launch, is 205-210 basis points area over semi-quarterly swap. ANZ, Emirates NBD, Mizuho Securities and Nomura are joint lead managers.
On 11 February, First Abu Dhabi Bank (First Abu Dhabi) (AA-/Aa3/AA-) launched a new five-year, senior-unsecured, Kangaroo transaction, offered in either or both fixed and floating-rate formats. The forthcoming deal is being marketed at 115 basis points area over swap benchmarks. Pricing is expected on the day of launch, according to ANZ, First Abu Dhabi and Nomura.
On 10 February, First Abu Dhabi Bank (First Abu Dhabi) (AA-/Aa3/AA-) began taking indications of interest for a potential five-year Kangaroo transaction, offered in either or both fixed and floating-rate formats. Initial price guidance for the deal, which is expected to launch in the near future, is 115 basis points area over swap benchmarks. ANZ and Nomura are joint lead managers.
The Kangaroo supranational, sovereign and agency (SSA) market has started 2019 with a trickle rather than its usual flood and intermediaries say Australian dollar pricing has been uncompetitive compared with offshore markets. They report solid fundamental demand but say a supply uptick is unlikely until there is a shift in the basis swap and pricing expectations.