News
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.
Korea Development Bank (KDB) (Aa3/AA-) priced a new 5.5-year dual-tranche Australian dollar transaction on May 16. According to KangaNews data, the borrower's last visit to the Kangaroo market was in November 2012, when it issued a A$300 million (US$280.9 million) three-year deal with pricing of 115 basis points over bank bill swap rate.
On May 16, Province of British Columbia (British Columbia) (AAA/Aaa/AAA) priced a new November 2024 AUD bond in what is the borrower's first ever Kangaroo deal. According to KangaNews data, Province of Manitoba (Manitoba), Province of Ontario and Province of Quebec have all previously issued in the Kangaroo market.
BWP Trust (A-) launched and priced an inaugural five-year fixed-rate Australian dollar MTN issue on May 15. The A$200 million (US$187.5 million) transaction priced at 120 basis points over semi-quarterly swap, 10 basis points inside initial guidance.
A May 15 New Zealand national budget which analysts describe as marginally less fiscally restrictive than that flagged at the last half-year update has fed through into a slightly increased funding task for the New Zealand Debt Management Office (NZDMO). New Zealand remains on track to return to surplus in the coming financial year, although the government has eased back on flight path for growth in surpluses.