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World Bank (AAA/Aaa/AAA) has priced an increase to its December 2014 Kauri bond. This transaction is the first Kauri issued since Telstra Corporation's NZ$100 million (US$70.6 million) deal priced on May 6. The World Bank line now has NZ$1.025 billion million outstanding, making it the first Kauri of over NZ$1 billion

International Finance Corporation (IFC) (AAA/Aaa) has sold A$500 million (US$446.45 million) in the inauguration of its longest-dated Kangaroo. As with the 2019 transaction placed by KfW Bankengruppe (AAA/Aaa/AAA) on July 15, IFC has placed a long-term issue in the form of a new 10-year benchmark deal.

The stars appear to be aligning again for sustained issuance in Australia with a domestic bank benchmark, a landmark corporate transaction and a large Kangaroo increase suggesting there could be activity in several market sectors. Market participants are cautiously positive about market prospects, although deal flow has been patchy since April.

Lead managers on the 2020 transaction priced on July 15 by APA Group (APA)'s (BBB/Baa2) wholly-owned subsidiary, APT Pipelines, say the deal is a clear demonstration of the capacity of the Australian corporate market to offer volume and term. The offer was upsized to A$300 million (US$264.12 million) at a margin of 240 basis points over swap.
Retail market users have responded positively to the launch of a new ratings agency, Australia Ratings, which is the first to secure a licence to offer its credit ratings to retail investors. But the start-up firm faces both short- and long-term challenges in establishing a franchise, even though none of the existing agencies have elected to seek retail licences in Australia.
Tasmanian Public Finance Corporation (Tascorp) (AA+/Aaa) has launched a June 2014 deal with a targeted size of A$500 million (US$440.8 million). This transaction is the issuer's first since Tascorp released its significantly increased budget for the 2010/11 financial year, and it is the second deal the issuer has brought to the market via bookbuild process.
Natural gas infrastructure provider APA Group (APA) (BBB/Baa2) launched its first domestic bond issue on July 14, announcing that it will place a minimum of A$200 million (US$176.7 million) of 10-year notes at an indicative margin of 240 basis points over semi-quarterly swap. The deal's issuer will be APA's common funding vehicle, APT Pipelines.
TD Securities and UBS Investment Bank have been mandated to launch an increase to KfW Bankengruppe (KfW)'s 5.25 per cent December 2019 Kangaroo bond. The increase will be for a minimum of A$250 million (US$220 million), taking the total issue size to A$1.9 billion minimum. Pricing is expected to occur on Thursday July 15.

Australian securitisation activity is continuing, with Capital Finance Australia launching an expected A$598 million (US$524.1 million) equivalent auto asset-backed securities (ABS) deal across six tranches. Bella Trust Series 2010-1 is the issuer's second visit to the asset-backed markets, having debuted in November last year with a A$866.7 million auto transaction.