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On 22 January, Kommunalbanken Norway (KBN) (AAA/Aaa) launched a A$25 million (US$19.4 million) minimum increase to its December 2030 Kangaroo line. Indicative price guidance for the deal is 33 basis points area over semi-quarterly swap, equivalent to 31.25 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to lead manager TD Securities.
Asian Development Bank (ADB) and European Investment Bank (EIB) delivered mid-January Kangaroo deals at a tenor – 10 years – that had been missing in the new-issuance market. Deal sources say Australian dollar pricing relative to core currency markets is still too wide to encourage more widespread sovereign, supranational and agency (SSA) issuance.
On 21 January, Inter-American Development Bank (IADB) (AAA/Aaa/AAA) launched a new 7.5-year, A$300 million (US$232.7 million) minimum, Kangaroo transaction. Indicative price guidance for the forthcoming deal is 24 basis points area over semi-quarterly swap, equivalent to 27.75 basis points area over Australian Commonwealth government bond.
Australian Unity issued Australia’s first-ever mutual capital instrument (MCI) on 24 December 2020. The A$120 million (US$93 million) perpetual security came nearly two years after enabling legislation passed in federal parliament. Adam Vise, the issuer’s Melbourne-based group treasurer, discusses the impetus for and mechanics of the transaction.
Treasury Corporation of Victoria (TCV) stepped into a quiet Australian dollar market with a new four-year syndication on 20 January. The issuer says secondary market selling that dominated market tone early in the year appears to have cleared and that issuance conditions supported a substantial book and final volume.
On 21 January, Westpac Banking Corporation (AA-/Aa3/A+) launched a new self-led, Australian dollar denominated, 10-year non-call five-year (10NC5), tier-two, benchmark transaction. Offered in either or both fixed- and floating-rate note formats, and expected to be rated BBB+/Baa1/BBB, the deal is being marketed at 165 basis points area over swap benchmarks. Pricing is anticipated on the day of launch.
On 20 January, Westpac Banking Corporation (AA-/Aa3) revealed plans for a potential self-led, Australian dollar denominated, 10-year non-call five-year (10NC5), tier-two, benchmark transaction. Offered in either or both fixed and floating-rate note formats, the notes are expected to be rated BBB+/Baa1.
On 19 January, CPPIB Capital (AAA/Aaa), owned and guaranteed by the Canada Pension Plan Investment Board, revealed plans for a potential Australian dollar denominated, 5-10 year, Reg S, EMTN transaction.