In July 2016 NRW.BANK, the state development bank for North-Rhine Westphalia, returned to the Kangaroo market after almost a decade, with a 10.5-year deal. The German agency followed with another transaction with the same tenor in October 2017. These deals form the first leg of the agency’s plan to expand its presence in the Kangaroo market.
COVID-19 has spurred record volume of social-bond issuance and some sustainable-finance experts believe the crisis will be the catalyst for much more widespread adoption of the instrument. Despite the best efforts of advocates, however, the hurdles to habitual use of social bonds, especially in the private sector, remain high.
NRW.BANK posted its largest-ever Kangaroo deal on 13 May in what the issuer says is the culmination of many years of investor engagement. The agency reveals plans to extend its Australian dollar presence this year, potentially with a social bond transaction.
Late in the Sydney day on 12 May, NRW.BANK (AA/Aa1/AAA) launched a new three-year Kangaroo transaction. The forthcoming deal is being marketed at 53 basis points area over semi-quarterly swap, equivalent to 52.55 basis points area over Australian Commonwealth government bond. Pricing is expected on 13 May, according to lead managers Nomura, RBC Capital Markets and TD Securities.
In 2006, KangaNews and L-Bank hosted a roundtable to discuss the status of Germany, German regions, and the federal state issuers based in those regions, in global markets – including Australia. The years since have brought unprecedented upheaval, perhaps more so in Europe than anywhere else. Even so, German federal states – the länder– remain among the world’s highest-quality issuers. Two state-guaranteed development banks in particular –L-Bank and NRW.BANK – have returned to Australian dollar issuance.
SSA Yearbook 2019
The annual guide to the world's most significant supranational, sovereign and agency sector issuers.