News

European Investment Bank (EIB) (AAA/Aaa/AAA) priced a A$350 million (US$368.3 million) increase to its August 2019 Kangaroo on June 16. The tap adds to a line which was introduced in July 2009 and now has A$3.45 billion outstanding, and is set to become EIB's second Kangaroo transaction within a month following a three-month absence.

On June 16, Westpac Banking Corporation issued a new A$2.2 billion (US$2.3 billion) residential mortgage-backed securities (RMBS) transaction. The deal, which was upsized from a launch volume of A$1 billion, is Westpac's second RMBS of the year after the bank reopened the asset-backed market for the big four Australian banks with a A$1 billion issue in February.

National Australia Bank (NAB) has announced that Christine Yates has been appointed the bank's new head of Australian debt markets origination, with Yates to lead the bank's loan syndications and DCM teams starting from July 1. The role was previously jointly filled by Patrick Mullins and Geoff Schmidt; the former left the bank in early 2011, while the latter now has a New York-based role of global head of international debt markets.

High-grade and international issuer activity dominated the Australian market this week, with Bank of New Zealand (BNZ)'s (AA/Aa2) covered bond the most eye-catching deal to close. There was also activity in the Kangaroo market from issuers in the supranational, sovereign and agency (SSA) sector, including a deal from a less-frequent borrower, while domestic credit issuance remained quiet.

The Province of Ontario (Ontario) (AA-/Aa1) completed a A$225 million (US$239.3 million) increase to its September 2020 Kangaroo on June 10. The line was inaugurated in September 2010 at a size of A$275 million with these two transactions remaining the only Australian deals to be placed by a Canadian province since Ontario itself last issued a Kangaroo bond in November 2006.

KfW Bankengruppe (KfW) (AAA/Aaa/AAA) launched its 12th Kangaroo transaction of 2011 on June 7, pricing a A$450 million (US$480.3 million) increase to the February 2018 line it introduced earlier this year. The agency has now sold A$5 billion of Kangaroos in 2011, trailing only the A$6.3 billion it placed in 16 deals in 2010 as its record Kangaroo year.

Commonwealth Bank of Australia (CommBank) (AA/Aa2/AA) completed its first Samurai transaction in three years on June 3 in what was also the largest Australian bank Samurai to come to market this year. The bank says it will continue to monitor opportunities in Japan following its ¥101 billion (US$1.3 billion) dual-tranche five-year deal, while market participants say the other major Australian banks may potentially strike while conditions remain favourable.

The New Zealand Debt Management Office (NZDMO) (AAA/Aaa/AAA) confirmed the initial volume of the new June 2023 benchmark government bond it will introduce via tender on June 10, with NZ$100 million (US$82.3 million) of the new bond to be placed. The new line, the introduction of which comes on the back of what the agency calls strong recent demand for longer-dated New Zealand government securities, will extend the issuer's benchmark curve by two years.

The second covered bond from a New Zealand bank has been announced, with ANZ National Bank (ANZ National) (Aa3/AA-) launching its inaugural issue in the format. The deal will be issued as part of ANZ National's €5 billion (US$7.3 billion) covered bond programme. Moody's Investors Service and Fitch Ratings have assigned the forthcoming issue preliminary long-term triple-A ratings.

  Citigroup (Citi) (A/A3/A+) has completed its buyback of both the fixed and floating rate note (FRN) tranches of its government-guaranteed August 2012 maturity. It bought back A$262.4 million (US$277.4 million) of the A$450 million fixed rate piece at a price of 100.582 per cent plus 1.584 accrued, and A$798.7 million of the A$800 million FRN at a price of 100.535 per cent plus 0.491 accrued.

On June 8 Bank of New Zealand (BNZ) (AA/Aa2) issued its inaugural Kangaroo covered bond issue via the London branch of its subsidiary BNZ International Funding. The fixed rate, five-year transaction reached a final volume of A$700 million (US$746.9 million) in what is also the first deal in Australia from BNZ in any format.