Four Australian issuers executed tier-two deals in the week of 17 August, reviving a subordinated debt market that had lain dormant since the onset of the COVID-19 crisis. Deal sources say demand for Australian tier-two paper is strong at home and abroad.
Asian Infrastructure Investment Bank took advantage of conducive market conditions and growing Australian dollar demand for sustainable debt to print its long-awaited debut in the Kangaroo market on 28 April. The issuer says an expanded, and fully sustainable, funding programme should support regular Kangaroo issuance.
On 27 April, Asian Infrastructure Investment Bank (AIIB) (AAA/Aaa/AAA) launched an inaugural A$300-500 million (US$233.5-389.2 million), five-year, Kangaroo, sustainable-development bond. Indicative price guidance for the deal is 21-23 basis points area over semi-quarterly swap, equivalent to 30.5-32.5 basis points area over Australian Commonwealth government bond.
On 23 April, Asian Infrastructure Investment Bank (AIIB) (AAA/Aaa/AAA) mandated Deutsche Bank, J.P. Morgan, Nomura and Westpac Institutional Bank to arrange a global investor call on 26 April regarding a potential inaugural Australian dollar denominated, Kangaroo, sustainable-development bond.