News
Demand for New Zealand inflation-linked product is bringing the New Zealand government closer to issuing in this format for the first time in more than 10 years, with an announcement possibly coming as early as May 20 when the national budget is released. The news comes after Transpower Finance (Transpower) (AA/Aa3) launched New Zealand's first corporate inflation-linked bond on April 19, with a minimum size of NZ$75 million (US$53.3 million).
KfW Bankengruppe (KfW) (AAA/Aaa/AAA) has mandated its eighth Kangaroo transaction of 2010, announcing on April 21 a forthcoming increase to its December 2019 bond. The transaction will also be the issuer's first in the Australian market since news emerged that KfW may be the vehicle used to fund the German portion of any bailout of Greece.
On April 20 Queensland Treasury Corporation (QTC) (AA+/Aa1) launched a new benchmark-sized April 2016 maturity deal. The new line, which is expected to price on April 21, will not be guaranteed by the Australian Commonwealth government and will therefore be the issuer's third new benchmark to be issued this year under the guarantee of the state of Queensland only.
Austria's government-guaranteed export finance agency, Oesterreichiscche Kontrollbank (OKB) (AAA/Aaa) is roadshowing in Australia with hopes of becoming a regular Kangaroo borrower. The roadshow, which is being hosted by Commonwealth Bank of Australia (CommBank) and UBS Investment Bank, visits Sydney on April 19 and 20 then Melbourne and Brisbane on the succeeding days.
Asian Development Bank (ADB) (AAA/Aaa/AAA) has launched an increase to its March 2020 Kangaroo bond; nine previous 10-year Kangaroo deals have priced since the start of the year. The issue also comes hot on the heels of World Bank's (AAA/Aaa/AAA) A$900 million (US$831.3 million) tap to its October 2019 maturity that priced on April 14.
High-grade issuers say domestic demand for Australian dollar product is strong with interest coming from a number of sectors – not just balance sheet buyers increasing liquid asset holdings in advance of forthcoming new regulations. And while offshore demand is being constrained to a degree by the strong currency Australia is avoiding any significant sovereign debt concerns.
Dexus Property Group (Dexus) (BBB+/Baa1) became the first true corporate borrower to issue a second new domestic bond line since the financial crisis with the pricing of its new April 2017 deal on April 15. The transaction was for A$180 million (US$168.1 million) of new seven-year bonds and came to market alongside a buyback of A$178.9 million of the issuer's outstanding February 2011 bonds.