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ANZ Banking Group (ANZ) (AA-/Aa2) priced a new self-led, three-year, senior-unsecured transaction on January 20. The deal is ANZ's first public transaction in the domestic market this year and the second of 2016 from a major bank, after Commonwealth Bank of Australia priced a A$2 billion (US$1.4 billion) five year on January 12.
On January 20, the Australian Office of Financial Management (AOFM) (AAA/Aaa/AAA) priced the new November 2027 nominal bond it mandated in the second week of January. Initial price guidance for the syndicated issue was a spread of 13.5-17.5 basis points over the implied bid yield for the primary 10-year Treasury bond futures contact.
Province of Manitoba (Manitoba) (AA/Aa2) priced an increase of its June 2026 Kangaroo bond on January 20. According to KangaNews data, the deal is the first tap to a line which was introduced in December 2015 at volume of A$70 million (US$48.3 million) and pricing of 90.75 basis points over Australian Commonwealth government securities.
On January 19 Export Development Canada (EDC) (AAA/Aaa) priced an increase of its May 2020 Kauri. EDC's May 2020 line, its longest outstanding Kauri bond, was introduced in April last year at NZ$300 million (US$192.8 million) with pricing of 17 basis points over mid-swap.
On January 19, home builder Impact Group (NR) revealed plans to issue a new five-year bond with target volume of A$40 million (US$27.5 million). Impact Group's bonds will offer an indicative coupon of 8.5 per cent, according to lead manager, FIIG Securities.
In a turnaround from 12 months ago and despite widening global spreads, Commonwealth Bank of Australia (CommBank)'s domestic market return highlights the advantage offered by domestic market pricing over offshore alternatives. But execution caution and capacity constraints continue to be important considerations.
Inter-American Development Bank (IADB) (AAA/Aaa) priced a new May 2021 Kauri bond on January 15. According to KangaNews data, IADB has previously issued three Kauri bonds – in 2007, 2008 and 2009. Only the most recent of these, a NZ$100 million (US$64.9 million) transaction printed in July 2009, is currently outstanding. This bond will mature in December 2017.
The solid pace of deal flow in Australia continued into the second week of January with more than A$3 billion (US$2.1 billion) of new issuance priced. It also shows little sign of abating, with the Australian Office of Financial Management revealing plans to syndicate a new nominal bond. In New Zealand, World Bank placed 43 per cent of its NZ$550 million five-year Kauri with domestic investors.
On January 15, ABN AMRO Bank (ABN AMRO) (A/A2/A) disclosed plans to carry out an investor update in Australia and Asia commencing during the week of January 18. According to KangaNews data, the borrower last visited the Kangaroo market in April 2015. That A$225 million (US$156.9 million) fixed-rate transaction had pricing of 115 basis points over semi-quarterly swap.
International Finance Corporation (IFC) (AAA/Aaa) launched and priced a new 10.5-year Kangaroo bond on January 14. The transaction is IFC's second Australian deal of 2016 after it priced a A$300 million (US$208.2 million) increase to its February 2021 line on January 8.