News
On January 21, Kommunalbanken Norway (KBN) (AAA/Aaa) mandated a tap of its July 2024 Kangaroo line in what is the borrower's third visit to the market in 2014. According to KangaNews data, the tap is the first increase of the line which was introduced on January 7 this year with a volume of A$150 million (US$131.5 million) and pricing of 100 basis points over Australian government bond (ACGB).
European rolling-stock agency EUROFIMA (AA+/Aaa) priced a new five-year Kangaroo transaction in what is its first deal in the Australian dollar market since July 2012. EUROFIMA was previously one of the most frequent supranational, sovereign and agency Kangaroo borrowers – it issued A$1.8 billion (US$1.6 billion) in 2005, for instance – but has been much less active since 2008.
The coveted return of L-Bank to Kangaroo issuance highlights the importance of both domestic and international investors in the Australian market, say intermediaries. The deal also emphasises the position of the AUD as a global currency, thereby opening the door for other sectors and countries to consider the market.
Sovereign, supranational and agency (SSA) Kangaroo and Kauri issuance dominated during the week under review. Nordic Investment Bank successfully executed deals in both markets and L-Bank returned to SSA Kangaroo issuance for the first time in almost seven years.
On January 16, Kommunalbanken Norway (KBN) (AAA/Aaa) priced a new Kangaroo bond deal due in January 2019. This is the second new Kangaroo line that KBN has launched in 2014 after it priced a A$150 million (US$132.1 million) curve-extending transaction on January 7.
KfW Bankengruppe (KfW) (AAA/Aaa/AAA) priced its second Kangaroo transaction of 2014 on January 16 – a A$200 million increase to its March 2024 line. According to KangaNews data, the bond – which is KfW's longest-duration Kangaroo – was introduced in a A$300 million (US$267.8 million) deal in September last year and has previously been increased just once, by A$200 million in November last year.
On January 16, L-Bank (AAA/Aaa) returned to the Kangaroo market with pricing of a new four-year deal. L-Bank, the development bank for the federal state of Baden-Wuerttemberg, last priced a Kangaroo bond in 2007 - a A$200 million (US$178 million) four-year.
On January 16, Royal Bank of Scotland (RBS) (A-/A3/A) completed its previously announced tender offer to buy back any and all of certain subordinated notes including four Australian dollar lines. The offer was originally launched on January 6.
On January 15, World Bank (AAA/Aaa) priced a new five-year issue in the Kangaroo market. It has already been active in global markets in 2014, pricing a US$4 billion five-year global bond on January 9, at 18.35 basis points over US Treasuries.
On January 14, Nordic Investment Bank (NIB) (AAA/Aaa) mandated a tap to its existing Kangaroo line due February 2024 and priced a new five-year bond in the Kauri market. This newly mandated deal is the third reopening of NIB's February 2024 Kangaroo line, which currently stands at a A$400 million (US$361.5 million) volume.
On January 14, Banco Santander-Chile (BSC) (A/Aa3/A+) mandated a series of fixed-income investor meetings to take place in Asia and Australia, with this issuer to explore "opportunities for capital markets transactions" in the Australian dollar market. BSC's parent, Banco Santander, has roadshowed in Australia in previous years but no group entity has yet priced Australian dollar bonds.