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.
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 18 June, KfW Bankengruppe (AAA/Aaa) launched a minimum A$100 million (US$68.5 million) increase to its June 2022 Kangaroo bond. Indicative price guidance for the forthcoming deal is 31 basis points area over semi-quarterly swap, equivalent to 20.85 basis points area over Australian Commonwealth government bond. Nomura is sole lead manager.