News

After a record January the Kangaroo market shows no signs of slowing in the second month of 2010 with KfW Bankengruppe (KfW) (AAA/Aaa/AAA) pricing a A$350 million (US$303.14 million) minimum increase to its December 2019 line on February 5, taking total Kangaroo issuance in February to A$1.85 billion in less than a week.

The second Kauri deal of 2010 priced on February 3, with World Bank (AAA/Aaa) adding NZ$300 million (US$213.12 million) to its December 2014 bond a day after launching the transaction. On the same day another Kauri transaction launched as European Investment Bank (EIB) (AAA/Aaa/AAA) announced the forthcoming pricing of a new three-year line.

ANZ (AA/Aa1) completed its first Samurai deal of 2010 – the second from an Australian issuer – on February 3, pricing a total of ¥60.3 billion (US$666.67 million) in a five-year, predominantly fixed-rate offering. Pricing on the transaction came in the middle of the indicative range given by the issuer, and was exactly in line with the levels achieved by Westpac Banking Corporation (Westpac) (AA/Aa1/AA-) in the equivalent tranches of its January 15 Samurai.

On the same day as it priced an increase to its December 2014 Kauri bond, World Bank (AAA/Aaa) priced A$1.5 billion (US$1.33 billion) in its new five-year benchmark Kangaroo transaction via ANZ, RBC Capital Markets and TD Securities. The transaction equals the volume of both the largest-ever supranational, sovereign and agency (SSA) Kangaroo deal and the largest single Kangaroo tranche from any issuer.

World Bank (AAA/Aaa) – already the largest issuer in the Kauri market – is preparing to price its sixth transaction in New Zealand with the February 2 launch of an increase to its NZ$600 million (US$425.04 million) December 2014 line. The issuer was also the busiest supranational, sovereign and agency in the Kauri market at the back end of 2009, pricing NZ$300 million over deals on December 3 and December 8.

Contrary to reports elsewhere, ANZ (AA/Aa1) has no plan to add a seven-year tranche to the Samurai deal it is expecting to price in the next few days. While the last Samurai issued by an Australian bank – Westpac Banking Corporation (Westpac)'s (AA/Aa1/AA-) ¥111.3 billion (US$1.24 billion) deal from January 15 – offered five- and seven-year notes, ANZ is focusing on a single-tenor trade.

A half-yearly funding update released by New South Wales Treasury Corporation (TCorp)'s (AAA/Aaa) on February 1 flags a likely increase in the expected volume of funds raised by inflation-linked issuance for the 2009/10 financial year. And while TCorp does not commit to further government-guaranteed funding the update also restates the positive impact on demand for the state treasury corporation's debt created by the guarantee.

On January 28, Kommunalbanken Norway (KBN) (AAA/Aaa) opened a new February 2013 Kangaroo maturity, pricing A$350 million (US$315.5 million) of floating rate notes (FRN) at 43 basis points over the three month bank bill swap rate. The transaction has pushed total Kangaroo issuance for January into record setting territory at A$6.325 billion – a volume that surpasses the old high-water mark of A$6.3 billion seen in February 2007.

The firms set to benefit from the Australian Office of Financial Management (AOFM)'s serial investments in residential mortgage-backed securities (RMBS) programme include two from the banking sector as well as three non-bank names. The government debt management agency will inject a total of up to A$3.4 billion (US$3.06 billion) into a series of RMBS deals from the five firms.

In a late finish to activity on January 27, Rentenbank (AAA/Aaa/AAA) tapped its January 2013 Kangaroo floating rate note (FRN) by A$350 million (US$313.18 million) long after the close of business. The increase brings the outstanding size of Rentenbank's FRN – which was first brought to market on January 14 this year – to A$650 million and aggregate Kangaroo issuance for the month to A$5.975 billion.

The state development bank of North-Rhine Westphalia (NRW), NRW.BANK (AA-/Aa1/AAA) – which has A$300 million (US$271.65 million) outstanding in its only Kangaroo line – has announced a change in ownership structure which will bind bank and state more closely together. The state has increased its equity share to 98.9 per cent from 64.74 per cent while the shares of the Regional Associations of the Rhineland and Westphalia-Lippe have dropped to 0.7 percent each from 17.63 percent.

Inter-American Development Bank (IADB) (AAA/Aaa/AAA) priced its third Kangaroo deal of the month on January 22, selling A$500 million (US$451.15 million) in a new May 2013 line at 60 basis points over government bonds or 15 basis points over swap. Having already issued A$900 million of Kangaroo paper this year – both of them increases to existing lines – IADB's new deal makes it the biggest Kangaroo issuer of 2010.