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On November 4, Inter-American Development Bank (IADB) (AAA/Aaa) printed a A$30 million (US$23 million) increase to its April 2027 Kangaroo bond. According to KangaNews data, the line was introduced in October this year for volume of A$125 million and pricing of 50 basis points over swap.
Following its return to the Australian commercial mortgage-backed securities (CMBS) market, Thinktank Commercial Property Finance (Thinktank) says expanding its investor reach beyond the scope of its first CMBS transaction proved fruitful. While the investor pool for CMBS is currently somewhat contained, Thinktank is hopeful comprehensive investor-relations work will further engage the wider securitisation community.
On November 3, Mercedes-Benz Australia Pacific (Mercedes-Benz Australia) (A-/A3/A-) mandated an Australian dollar-denominated three-year transaction. The transaction will be issued off the borrower's EMTN programme and will be listed in Luxembourg.
On November 2, EUROFIMA (AA+/Aa1) topped up its January 2027 Kangaroo by A$25 million (US$18.3 million). Initial price guidance on the forthcoming transaction its 71 basis points over semi-quarterly swap. According to KangaNews data, the line was introduced in July this year for volume of A$75 million. It was most recently tapped by A$30 million in October at 71 basis points over swap.
Z Energy has completed its latest domestic senior-secured, fixed-rate offer, according to a November 1 NZX announcement. The proceeds from the transaction are being used to refinance an existing tranche of bonds which matured on October 15 2016 and to replace some of the bank debt associated with the acquisition of the Chevron New Zealand business.
On October 31, African Development Bank (AfDB) (AAA/Aaa/AAA) priced a A$30 million (US$22.8 million) increase to its June 2026 Kangaroo bond. The transaction priced flat to initial guidance of 51 basis points over semi-quarterly swap. According to KangaNews data, this line was introduced in May 2014 for volume of A$75 million. It was most recently tapped by A$25 million in September at 51 basis points over swap.
Japanese life insurers' demand for offshore bonds continues to grow, in particular these investors' increasing focus on credit product. An ANZ research note published on October 31 provides insights into the Japanese life sector's investment intentions – and the report's author says finding assets to fulfil this demand could be the biggest challenge for the Australian market.
Kangaroo supranational, sovereign and agency deal flow picked up in the last week of October with six deals priced. Queensland Treasury Corporation printed A$1.5 billion (US$1.13 billion) in a 2027 syndication and Auckland International Airport upsized its domestic deal to NZ$225 million (US$160.7 million) from NZ$100 million.
Thinktank Commerical Property Finance (Thinktank) priced a new A$280 million (US$212.7 million) SME commercial mortgage-backed securities (CMBS) transaction on October 28. Thinktank launched the transaction for a target volume of A$200 million.
On October 28, MyState Bank printed A$300 million (US$227.8 million) in a new residential mortgage-backed securities (RMBS) transaction under its ConQuest programme. The A$270 million A1 notes and A$10.5 million A2 notes priced flat to guidance at 130 basis points over one-month bank bill swap rate (BBSW) and 190 basis points over one-month BBSW respetively.