News
Nordic Investment Bank (NIB) (AAA/Aaa/AAA) increased its April 2022 Kangaroo bond by A$100 million (US$105.8 million) on January 11. The tapped line was inaugurated in April last year and has been increased prior to the new deal pricing; it now totals A$775 million.
The first new Kangaroo bond of 2013 priced on January 10, as KfW Bankengruppe (KfW) (AAA/Aaa/AAA) added a new five-year point to its Australian dollar curve in a A$1 billion (US$1.05 billion) transaction. According to KangaNews data, the deal is the largest single-tranche issue in the Kangaroo market since Juky 2011.
The first Kangaroo deal of 2013 priced on January 9 as Inter-American Development Bank (IADB) (AAA/Aaa/AAA) issued an increase to its July 2022 bond. The supranational added A$175 million (US$183.3 million) to its longest-dated Kangaroo, taking the line's outstanding volume to A$850 million according to KangaNews data.
Early responses from Australian analysts offer little expectation that the Australian Prudential Regulation Authority (APRA) will follow the decision of the Basel Committee on Banking Supervision (BCBS) to ease liquidity coverage ratio (LCR) requirements for banks. On January 6 the BCBS increased the range of assets qualifying as level two liquids and extended the timetable for full LCR implementation, by four years, to 2019.
KangaNews's final intermediary league tables for 2012 illustrate another good year for ANZ as a lead manager, as the bank led the pack for both Australian and New Zealand dollar bond issuance. Sectoral league tables – which, for the first time, include covered bond and retail-accessible issuance tables – feature market leadership from banks including ANZ, National Australia Bank (NAB), TD Securities (TD) and UBS Investment Bank (UBS).
Deal flow slowed heading into year-end, although ANZ Banking Group priced its government-guaranteed buyback. Australia's sovereign ratings were unaffected after the treasurer backed off a commitment to surplus in 2012/13. In New Zealand, the domestic government bond programme was increased and ASB Bank priced a NZ$400 million (US$338.4 million) new five-year senior deal.
A negative, if largely expected, note was sounded on an active day for Australia's sovereign and semi-government borrowers, as continuing revenue declines forced both the Australian Commonwealth and the state of New South Wales (NSW) to acknowledge previously-forecast budget surpluses will now likely not be achieved. Meanwhile Western Australia (WA) saw the stable outlook on its top rating lowered by a second rating agency.
On December 18 the New Zealand Debt Management Office (NZDMO) increased the 2012/13 domestic bond programme by NZ$500 million (US$421.8 million) to NZ$14 billion, from NZ$13.5 billion announced at budget 2012. The NZDMO also announced the intention to launch a mid-curve bond in the near future.
On December 18, ANZ Banking Group (ANZ) closed the cash tender offer to buy back its only outstanding benchmark-sized Australian domestic government-guaranteed bonds.
KangaNews is proud to announce the launch of its latest set of intermediary league tables: the AUD Listed Debt League Tables. Early in what turned out to be a busy year for retail-accessible issuance in Australia, market participants asked KangaNews to expand its existing suite of league tables to recognise the work of intermediaries in bringing such transactions to market. The AUD Listed Debt League Tables are the product of KangaNews's work in this area.
Deal flow continued on the financial side, with subordinated debt transactions a focus of market activity. ANZ also offered to buy back of its government-guarenteed bonds. In the New Zealand market, Auckland International Airport and Auckland Council priced deals and ASB Bank launched a new five-year domestic deal.