News
Queensland Treasury Corporation (QTC) (AA+/Aa1) will list two new shorter-term benchmark lines covered by the guarantee of the state of Queensland as a consolidation offer out of existing, similar maturity federally-guaranteed benchmarks. The corporation expects to price the consolidation of its 2011 and 2012 lines no later than July 23.
European Investment Bank (EIB) (AAA/Aaa/AAA) has priced A$1 billion (US$892.9 million) in a a new 10-year Kangaroo line. It is the third Kangaroo transaction to come to the market in a week, following almost a month without issuance. The August 2020 issue, which priced on July 22, was lead-managed by Deutsche Bank, RBC Capital Markets and TD Securities.
World Bank (AAA/Aaa/AAA) has priced an increase to its December 2014 Kauri bond. This transaction is the first Kauri issued since Telstra Corporation's NZ$100 million (US$70.6 million) deal priced on May 6. The World Bank line now has NZ$1.025 billion million outstanding, making it the first Kauri of over NZ$1 billion
International Finance Corporation (IFC) (AAA/Aaa) has sold A$500 million (US$446.45 million) in the inauguration of its longest-dated Kangaroo. As with the 2019 transaction placed by KfW Bankengruppe (AAA/Aaa/AAA) on July 15, IFC has placed a long-term issue in the form of a new 10-year benchmark deal.
The stars appear to be aligning again for sustained issuance in Australia with a domestic bank benchmark, a landmark corporate transaction and a large Kangaroo increase suggesting there could be activity in several market sectors. Market participants are cautiously positive about market prospects, although deal flow has been patchy since April.
Lead managers on the 2020 transaction priced on July 15 by APA Group (APA)'s (BBB/Baa2) wholly-owned subsidiary, APT Pipelines, say the deal is a clear demonstration of the capacity of the Australian corporate market to offer volume and term. The offer was upsized to A$300 million (US$264.12 million) at a margin of 240 basis points over swap.