Pricing in the Australian dollar supranational, sovereign and agency (SSA) market remains dislocated, intermediaries say, based on lack of alignment between domestic investor and offshore borrower pricing expectations. A number of factors are at play, not least among them the record support SSA borrowers are receiving in global markets.
On 15 July, European Investment Bank (EIB) (AAA/Aaa/AAA) launched a minimum A$150 million (US$111.4 million) increase to its November 2024 climate-awareness bond (CAB) Kangaroo. The forthcoming deal has indicative price guidance of 6 basis points area over semi-quarterly swap, equal to 24.5 basis points area over Australian Commonwealth government bond. ANZ and Nomura are joint lead managers.