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
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.
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.