News
The Australian and New Zealand domestic markets continued to be fertile ground for new primary-market issuance during the third week of May, although total volume lagged the previous week. ANZ Banking Group returned to wholesale domestic issuance for the first time in more than six months, printing a A$1 billion (US$923.7 million) three-year floating-rate note.
On May 22, Adani Abbot Point Terminal (AAPT) returned to domestic issuance when it priced a A$100 million (US$92.3 million) six-year transaction. The deal was targeted at wholesale-qualifying investors via FIIG Securities (FIIG). In the wake of this issue – FIIG's first for a rated borrower – the broker's Sydney-based CEO, Mark Paton, insists the private-client investor can be part of the funding solution for longer-tenor issuance going forward.
ANZ Banking Group (ANZ) (AA-/Aa2) priced a new self-led, three-year, benchmark-size issue in the Australian dollar market on May 22. The deal is ANZ's first wholesale-targeted domestic transaction in more than six months. Meanwhile ANZ's major-bank peers have printed a combined A$9.375 billion (US$8.66 billion) of domestic bonds this calendar year.
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.