The latest total loss-absorbing capacity (TLAC)-compliant deal denominated in Australian dollars to come to market attracted incrementally more domestic demand than its closest comparison transaction, leads say. When – and even whether – this type of issuance will migrate to Kangaroo documentation remains an open question, however.

International Finance Corporation (IFC) (AAA/Aaa) launched a capped increase of A$200 million (US$152.2 million) to its August 2022 Kangaroo bond and a minimum A$100 million increase to its October 2027 Kangaroo bond on 5 July. The transactions are being marketed at 31 basis points over semi-quarterly swap and 45 basis points over semi- quarterly swap respectively. They are expected to price by 6 July according to lead managers J.P. Morgan, Mizuho Securities and TD Securities.

Crédit Agricole London Branch (Crédit Agricole) (A/A1/A+, with an expected issue rating of BBB+/Baa2/A+) mandated a new senior nonpreferred transaction denominated in Australian dollars on 28 June. The 10-year deal is being marketed at 180 basis points over swap area, via Crédit Agricole CIB, National Australia Bank, Nomura and TD Securities.

NWB Bank (NWB) (AAA/Aaa) launched a tap of its July 2027 Kangaroo on 26 June. The TD Securities-led increase is for minimum volume of A$15 million (US$11.4 million) and is being marketed in the area of 64 basis points over swap or 79 basis points over Australian Commonwealth government bond. Pricing is due on 27 June.

Landesbank Baden-Wuerttemberg (LBBW) (A1/A- by Moody’s/Fitch) revealed on 20 June that it has mandated an Australian dollar-denominated tier-two EMTN transaction. The 10-year bullet notes are expected to be rated Baa2/BBB with launch timing subject to market conditions.