News
The bailout of Bear Stearns (BBB/Baa1/A-) by J.P. Morgan Chase (AA-/Aa2/AA-) (J.P. Morgan) will have a direct impact on over A$3 billion (US$2.76 billion) of Kangaroo bonds from the two issuers, although Bear Stearns' paper may emerge from the trauma with an upgraded rating.
Nordic Investment Bank (AAA/Aaa) (NIB) returned to the Kauri market on March 14 with a new deal, a NZ$100 million (US$81.51 million) 2015. The transaction priced at 120.5 basis points over the benchmark 6 per cent 2015 sovereign bond, equating to 22 basis points below swap according to lead manager ANZ.
European Investment Bank (AAA/Aaa/AAA) (EIB) has reinforced its position as the leading Kangaroo issuer of 2008 to date with a further increase of A$400 million (US$374.2 million) to its 2017 line – the second time it has tapped the A$1.6 billion bond this year.
Asian Development Bank (AAA/Aaa/AAA) (ADB) priced its third Kangaroo transaction of the year on March 12, a A$300 million (US$279.4 million) five-year bond which is also its first new Kangaroo line since November 2006.
Canada’s Province of Manitoba (AA/Aa1) (Manitoba) roadshowed in Australia on March 10-12 and, while representatives emphasised that no deal is imminent, says that it wants to become a regular issuer in the Kangaroo market.
Rentenbank (AAA/Aaa/AAA) has continued its recently announced strategy of only bringing larger-sized increases to the Kangaroo market in 2008 with the March 11 increase of A$250 million (US$232.1 million) to its 2011 bond.
Following the March 6 A$200 million (US$185.8 million) increase to its 2011 Kangaroo bond Nordic Investment Bank (AAA/Aaa) (NIB) says it is observing the proportion of its deals which is bought by offshore investors and has a clear idea of the maximum level it is happy to see.
Triple-A borrowers speaking at the KangaNews/Westpac Speed-Meeting Summit in Sydney have said it has been possible to exploit a flight to quality by issuing Kangaroos but confirmed their belief that the market will remain challenging for some time.
The conveyor belt of triple-A Kangaroo deals continued on February 27 as Asian Development Bank (AAA/Aaa/AAA) priced a A$150 million (US$140.2 million) increase to its 2011 line, which now totals A$1.15 billion.
CADES (AAA/Aaa/AAA) has priced its third Kangaroo bond, a A$300 million (US$276.8 million) 2013 transaction, after ANZ Banking Group (ANZ) left the deal’s syndicate between launch and pricing.
A busy seven days in the Kangaroo market continued on February 22 as Rentenbank (AAA/Aaa/AAA) priced a A$300 million (US$276.2 million) increase to its 2013 bond, bringing the total size of the line to A$1.3 billion.
Triple-A Kangaroo deal flow continued on February 21 with KfW Bankengruppe (AAA/Aaa/AAA) (KfW) bringing a new A$400 million (US$367.2 million) 2011 and Inter-American Development Bank (AAA/Aaa) (IADB) pricing a A$200 million increase to its own 2011 line.