News
Only a smattering of activity kept the Australian market ticking over for the final full week of March while New Zealand wholesale primary issuance halted entirely. The largest transaction of the week was a A$250 million (US$232.4 million) five-year debut Kangaroo deal for First Gulf Bank. Final books were close to A$400 million from 75 accounts.
On March 27, Inter-American Development Bank (IADB) (AAA/Aaa/AAA) priced a tap to its August 2024 Kangaroo bond.
On March 26, ING Bank Australia completed its previously announced tender offer to buy back its fixed- and floating-rate government-guaranteed bonds maturing in March 2015. The offer, which was originally launched on March 19, has seen A$654.3 million (US$604 million) of domestic paper bought back by the bank.
On March 25, First Gulf Bank (A+/A2) priced a five-year debut issue in the Kangaroo market. First Gulf Bank is only the third-ever Middle East-origin borrower to access the Australian market, according to KangaNews data.
Perth Airport added a second pricing point to its domestic curve during the third week of March, pricing an eventual A$400 million (US$362.4 million), seven-year transaction at 165 basis points over swap. Elsewhere, European sovereign, supranational and agency borrowers provided all the deal activity in Australia and New Zealand.
On March 20, Municipality Finance (MuniFin) (AAA/Aaa) priced the first increase to its March 2024 Kangaroo line. According to KangaNews data, the line was launched on March 11 this year at a volume of A$125 million and pricing of 87.5 basis points over Australian government bond. This transaction is currently the borrower's only outstanding Kangaroo maturity.
On March 19, KfW Bankengruppe (KfW) (AAA/Aaa/AAA) priced a tap to its July 2018 Kangaroo issue. KfW was most recently in the Australian market last month when it priced a A$150 million (US$136.3 million) tap to its March 2024 Kangaroo line at 69.25 basis points over the Australian government bond (ACGB).
On March 18, Perth Airport (BBB/Baa2) priced a new seven-year issue in the domestic market.
Komunalbanken Norway (KBN) (AAA/Aaa) priced an increase to its 2019 Kauri bond on March 17. According to KangaNews data, the forthcoming deal will be the first tap of the line which was introduced in March 2012. That deal, which had a volume of NZ$75 million (US$64.1 million), was priced at 85 basis points over swap.