News
*Last chance to register for the KangaNews DCM Summit, which returns to Auckland on August 6. The final agenda and instructions on how to register can be found here.* Kangaroo deal flow picked up in the week under review with six new transactions while, on the other side of the Tasman Sea, New Zealand dollar activity was subdued for the fourth consecutive week.
Wells Fargo & Company (Wells Fargo) (A+/A2/AA-) priced a new benchmark senior-unsecured five-year Kangaroo deal on August 1. According to KangaNews data, the borrower last visited the Australian dollar market in May last year. That A$150 million (US$139.8 million) nine-year deal had pricing of 150 basis points over semi-quarterly swap.
Transpower New Zealand (Transpower) says investor diversity and constructive pricing drew the borrower back to the Kangaroo market for its latest, seven-year, deal. The transaction is Transpower's second-ever Kangaroo transaction and the Kangaroo market's third New Zealand-origin institutional deal of 2014.
The Province of British Columbia (British Columbia) (AAA/Aaa/AAA) priced the first increase of its November 2024 Kangaroo line on July 31. This original tranche of this transaction, which was also the borrower's first-ever Australian dollar deal, was priced in May this year with a volume of A$400 million (US$375.2 million) and pricing of 77.25 basis points over Australian government bond.
On July 31, Rentenbank launched and priced an increase to its January 2025 Kangaroo line. According to KangaNews data, this is the second tap to the line which was first introduced on July 2 this year at a volume of A$200 million (US$186.5 million) and pricing of 62 basis points over Australian government bond (ACGB).
On July 30, Transpower New Zealand (Transpower) (AA-/A1) launched and priced a new Kangaroo issue. The transaction is Transpower's second-ever Kangaroo transaction and the Kangaroo market's third New Zealand-origin institutional deal of 2014.
Auckland Airport has returned to the US private placement (USPP) market with a new 12-year deal, which it closed on July 25. The issuer cites favourable pricing as the key driver for its return to the market after a three-year plus absence. It adds that the long-dated transaction was met with good demand and significant oversubscription.
*Registrations are still open for the KangaNews DCM Summit, which returns to Auckland on August 6. An up-to-date agenda, including confirmed keynote speakers, and instructions on how to register can be found here.* Australian deal flow slowed for the final full week of June, with only three deals priced. Continued demand for securitisation saw ME Bank price its first RMBS deal of 2014 at an upsized volume.
On July 24, Inter-American Development Bank (IADB) (AAA/Aaa/AAA) priced a new 5.5-year Kangaroo transaction. This is the 14th time the borrower has visited the Kangaroo market in 2014. IADB most recently issued on June 20 with a A$250 million (US$235.7 million) tap to its October 2018 Kangaroo, priced at 46 basis points over Australian government bond.
Price tightening in the securitisation market combined with consistent supply drew ME Bank back to the domestic market with its first residential mortgage-backed securities (RMBS) deal of 2014, the borrower says. By its July 23 pricing, the four-tranche deal, SMHL Series Securitisation Fund 2014-1, was upsized to A$1.45 billion (US$1.37 billion) from A$500 million at launch.