News

On January 19 Rentenbank (AAA/Aaa/AAA) priced a new January 2016 Kangaroo bond, selling A$800 million including a floating rate note (FRN) tranche for over half the total. This is the second Kangaroo FRN to price in 2011, following Kommunalbanken Norway's (AAA/Aaa) deal from the previous day.

ANZ (AA/Aa1/AA-) has completed its first Samurai bond of 2011, issuing a ¥86.1 billion (US$1.04 billion) dual-tranche five-year deal on January 14. The transaction continues ANZ's recent pattern of Samurai issuance – the bank has issued a benchmark deal in Japan in the first quarter of each year since 2008 – and market participants believe certainty of execution and favourable pricing will assist a developing pipeline of deals from Australian issuers in the first quarter.

Kommunalbanken Norway (KBN) (AAA/Aaa) increased its October 2014 Kangaroo by A$250 million (US$248.1 million) on January 18, adding to the transaction a new 2015 maturity floating rate note (FRN). The transaction was KBN's first Kangaroo issue since August last year, when it priced A$100 million in the third tap to its February 2013 maturity.

On January 17, World Bank (AAA/Aaa) mandated an increase to two of its Kangaroo lines – the October 2014 and October 2020 – in what will be the first taps to both lines. The forthcoming transactions are set to become the fifth and sixth deals to price in the Kangaroo market in 2011 and are expected to add significant volume to the A$2.2 billion (US$2.2 billion) of Kangaroos sold so far this year.

SNS Bank (A-/A3/A-) has bought back the majority of paper in its single outstanding maturity in Australian dollars. The buyback reduces the original volume of A$200 million (US$199.4 million) on issue in each of the line's fixed and floating rate tranches, both of which are subordinated, by A$174.75 million and A$171.6 million respectively.

Although intermediaries believe the first months of 2011 are unlikely to surpass record Kangaroo issuance levels seen at the start of 2010, there is a degree of confidence that encouraging early deal flow in the Kangaroo market will be maintained. Several sources point to a number of roadshows being undertaken by names across asset classes – including the supranational, sovereign and agency (SSA), financial institution (FI) and covered bond sectors – as a reason for optimism.

BNP Paribas Australian Branch (BNP Paribas Australia) (AA/Aa2/AA-) priced its first domestic transaction of the year on January 14, having mandated the new January 2014 deal a day earlier. The bank has been an increasingly active borrower in the Australian market since its debut in 2009, issuing A$1 billion (US$995.1 million) that year and a further A$2.25 billion in 2010.

On January 13, Commonwealth Bank of Australia (CommBank) (AA/Aa1/AA) launched and priced a new A$2.5 billion (US$2.49 billion) July 2015 fixed and floating rate bond. It is the first deal issued by a big four financial institution (FI) in 2011, and the largest ever non-guaranteed domestic transaction from a bank issuer. The self-led deal is CommBank's first domestic bond since September last year, and its first with a tenor beyond four years since July 2009.

The third Kangaroo transaction of the year, priced on January 12, is also the first for a new line in the form of a A$600 million (US$591.2 million) January 2016 bond from KfW Bankengruppe (KfW) (AAA/Aaa/AAA). The bond is the issuer's second 2016 expiry Kangaroo line, as it already has A$1 billion of paper set for maturity in July that year.

Rabobank Nederland Australia Branch (Rabobank Australia) (AAA/Aaa) issued a new A$900 million (US$886.8 million) April 2015 line on January 12, in what was the first deal to price in the domestic market this year. The new issue repeats the bank's milestone from last year when it completed the first domestic transaction of 2010 on January 20 – a A$900 million three-year deal which was upsized by a further A$150 million one day later.