European Investment Bank (AAA/Aaa/AAA) (EIB)’s 2013 Kangaroo bond is the first from a triple-A rated issuer to reach A$2 billion (US$1.92 billion) in size following the May 20 increase of A$500 million to the line.
Instituto de Crédito Official (AAA/Aaa/AAA) (ICO) launched and priced a A$200 million (US$187.52 million) increase to its 2012 Kangaroo bond on May 12, bringing the total outstanding in this line to A$1.2 billion.
Inter-American Development Bank (AAA/Aaa) (IADB) priced an A$150 million (US$142.08 million) increase to its 2010 Kangaroo bond on May 7 – the first Kangaroo transaction since a European Investment Bank tap on April 18.
An April 29 announcement from Australian Prudential Regulation Authority (APRA) has killed off hopes that Australian financial institutions will be allowed to issue covered bonds in the near future – and may mean the products remain no more than a minor source of Kangaroo issuance.
After pricing a A$500 million (US$473.9 million) increase to its 2012 Kangaroo bond on April 18, European Investment Bank (AAA/Aaa/AAA) has acknowledged that the basis swap volatility which first entered the market just before Easter continues to be a barrier to deal making.