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L-Bank (AAA/Aaa/AAA) mandated the introduction a new, April 2028 maturity, Kangaroo bond on 26 September. The new line’s inauguration is being marketed at 62 basis points over semi-quarterly swap by lead managers Commonwealth Bank of Australia, Deutsche Bank, Nomura and RBC Capital Markets. Pricing is expected on 27 September.
Ausgrid (Baa1) will commence an investor roadshow in Australia and Asia on 9 October, ahead of a potential Australian dollar capital-markets debut issue. Mizuho Securities, National Australia Bank and Westpac Institutional Bank are arranging the investor meetings, which will take place in Sydney, Melbourne, Singapore, Hong Kong and Tokyo.
Province of Manitoba (Manitoba) (A+/Aa2) launched an increase to its August 2027 Kangaroo on 26 September. The ANZ-led deal, which will price on day of launch, is for minimum volume of A$50 million (US$39.7 million) and is being marketed at 70 basis points area over semi-quarterly swap.
The issuers of two new residential mortgage-backed securities (RMBS) deals highlight engagement by investors – including offshore accounts – all the way down the capital structure as instrumental to volume outcomes. The distribution profile of both transactions demonstrates the extent to which the net is being cast wider.
Issuer and investors say pricing on Deutsche Bahn’s debut Kangaroo deal worked for both sides. However, final book size may have been somewhat tempered by the fact that Deutsche Bahn falls into a mandate gap for some of Australia’s largest institutional accounts.
International Finance Corporation (IFC) (AAA/Aaa) launched a minimum A$200 million (US$159.4 million) increase to its August 2022 Kangaroo bond on 25 September. The forthcoming deal is being marketed at 29 basis points area over semi-quarterly swap, and is expected to price on or before 26 September.
Oversea-Chinese Banking Corporation Sydney Branch (OCBC Sydney) (AA-/Aa1/AA-) launched a new, three-year domestic benchmark bond on 25 September. The forthcoming deal, which is expected to emerge in either or both of fixed- and floating-rate formats, has price guidance of 62 basis points area over swap benchmarks.
Australian dollar volume surpassed the A$2.7 billion (US$2.1 billion) mark during the third week of September. Suncorp-Metway (Suncorp) priced its largest residential mortgage-backed securities transaction since 2008, with the final A$1.5 billion print double the deal's launch volume. Meanwhile, Deutsche Bahn completed its debut Australian dollar deal, which is also the first-ever Kangaroo transaction from a German true-corporate issuer, according to KangaNews data.
