Latest News
Export Development Canada (EDC) (AAA/Aaa) priced a new five-year Kangaroo bond, on May 22.
On May 21, Abu Dhabi Commercial Bank (ADCB) became the fourth Middle East-origin financial institution (FI) issuer to print a Kangaroo deal in 2014. Intermediaries predict this steady stream of issuance will continue as borrowers from more overseas regions now see the Australian market as providing more than just an arbitrage opportunity.
Abu Dhabi Commercial Bank (ADCB) (A/A+) priced its inaugural five-year Australian dollar bond issue on May 21. According to KangaNews data, ADCB is the fourth United Arab Emirates-origin borrower to issue a Kangaroo deal in 2014 – and the third debut issuer.
Strong demand for listed regulatory capital issuance and the bank's self-imposed issuance cap led Westpac Banking Corporation (Westpac) to use a carefully considered demand-management strategy in its latest tier-one hybrid security, the issuer says. Funds available for investment in the retail market are being boosted by the lagging impact of the downward repricing of deposits in line with movement in the cash rate over the last 18 months.
On May 21, European Investment Bank (EIB) (AAA/Aaa/AAA) priced a new four-year Kangaroo issue. The forthcoming bond fills a gap in EIB's curve between its existing January 2017 and March 2019 Kangaroo issues.
Korea Development Bank (KDB) tells KangaNews in the wake of its second-ever Kangaroo deal that it was drawn to the market by optimal pricing – with the Australia dollar offering better value than the euro – and investor diversification. The 100 per cent government-owned KDB priced a new 5.5-year dual-tranche Kangaroo transaction on May 16, extending its curve in Australian dollars in what was its first visit to the market since November 2012.
On May 20, Federation Centres Finance (Federation Centres) priced a A$150 million (US$139.1 million), seven-year bond deal in the Australian domestic market.
Rentenbank (AAA/Aaa/AAA) priced the eighth increase of its existing A$1 billion April 2024 Kangaroo line on May 20. According to KangaNews data, the line was first introduced in September 2013 with a volume of A$200 million (US$186.6 million) and pricing of 93.5 basis points over Australian government bond (ACGB).
Inter-American Development Bank (IADB) (AAA/Aaa/AAA) priced a second increase of its existing October 2018 AUD bond on May 20. According to KangaNews data, the line was introduced in September 2013 with a volume of A$200 million (US$187.3 million) and pricing of 70.25 basis points over Australian government bond (ACGB).
A group of four supranational, sovereign and agency (SSA) Kangaroo deals launched and priced in quick succession in the week of Australia's federal budget on May 13. Joint lead managers on the deals say high redemptions in May and June alongside improved global market sentiment were key drivers for the new transactions.
Deal flow ramped up to exceed A$6 billion (US$5.6 billion) equivalent across Australia and New Zealand domestic markets during the second full week of May. A mix of new and seasoned names made the most of positive market sentiment following government budgets on either side of the Tasman Sea.