On July 24 the European Investment Bank (EIB) (AAA/Aaa/AAA) priced its inaugural NZ$400 million (US$323 million) five-year Kauri bond. This is the largest fixed rate note transaction in the Kauri bond market.
On Friday July 20 the World Bank (AAA/Aaa) priced its debut NZ$350 million (US$278 million) seven-year global Kauri bond.
Two supranationals have announced intentions to issue Kauri bonds and others are looking closely at the market as the Reserve Bank of New Zealand (RBNZ) announced an extension of its list of repo-eligible securities.
Effective September 3 2007, the RBNZ will broaden the range of securities acceptable for overnight reverse repo facility (ORRF) as a last resort facility for counterparties to access cash in exchange for security.
Kaupthing Bank (Aa3/A), Iceland’s largest financial institution, is roadshowing in Australia and hopes to issue its first publicly-placed Kangaroo as soon as short-term market conditions move in its favour.
Japan’s Orix Corporation (A-/Baa1) and its Australian subsidiary Orix Australia, which is subsidised by its parent and as such shares its credit rating, will roadshow in Australia at the start of August.
Standard & Poor's (S&P) has improved its outlook on the Canadian province of Québec (A+/A1/AA-) from neutral to positive on the back of a commitment to reduce its overall debt.
Kaupthing Bank (Aa3/A), Iceland’s largest financial institution, will return to Australia with a roadshow, arranged by ANZ Banking Group (ANZ) and RBC Capital Markets (RBCCM), commencing on July 16.
Concern over the likely impact of GPS120, the Australian Prudential Regulation Authority (APRA) edict which prevents Australian general insurers from classifying Kangaroo bonds as domestic assets for portfolio purposes, appears to have receded.
Credit agencies Moody’s Investors Service (Moody’s) and Standard & Poor’s (S&P) have confirmed that bonds issued by Sallie Mae (SLM) are likely to fall below investment grade if its expected takeover by a private equity consortium goes ahead.
A May 18 A$250 million (US$205 million) tap raised Instituto de Crédito Oficial (ICO)'s (AAA/Aaa/AAA) March 2011 bond to a total issuance of A$750 million.
Iceland's Landsbanki (Aa3/A) has completed a A$2 billion (US$1.67 billion) Kangaroo programme but seems unlikely to issue in the short term.