News
On January 17 European Investment Bank (EIB) (AAA/Aaa/AAA) mandated RBC Capital Markets as sole lead for an increase to the A$800 million 6.125 per cent January 2017 Kangaroo bond. Pricing is expected on Friday January 18.
The two remaining Kangaroo deals which launched on January 14 have priced, with both KfW Bankengruppe (AAA/Aaa/AAA) (KfW) and Asian Development Bank (AAA/Aaa/AAA) (ADB) increasing 2012 bonds by A$250 million (US$224.8 million).
January 14 saw more positive signs for the Kangaroo market with Instituto de Crédito Official (AAA/Aaa/AAA) (ICO) pricing a A$200 million (US$179 million) increase to its 2012 bond on the same day two further deals launched.
European Investment Bank (AAA/Aaa/AAA) (EIB) has priced the first new Kangaroo deal since last June, selling A$500 million (US$447.4 million) of 2012 paper on January 11.
The first Kangaroo deal of 2008 priced on January 8, with EUROFIMA (AAA/Aaa) increasing its 2018 bond by A$250 million (US$219.3 million). The TD Securities (TD) lead-managed deal priced at 66 basis points over the benchmark 2017 6 per cent government bond.
On December 18 Inter-American Development Bank (AAA/Aaa) (IADB) issued a NZ$100 million (US$76.6 million) Kauri bond in a private placement.
Westpac has announced that its long-serving joint head of debt securities and syndicate, Peter Bloomfield, has retired with Simon Ling, formerly Bloomfield’s co-joint head, assuming sole control of the bank’s vanilla and hybrid origination business.
German federal agency KfW Bankengruppe (AAA/Aaa/AAA) (KfW) plans to further increase its funding volume in the year ahead, to €70 billion (US$100 billion), from €63 billion raised in 2007.
The long-running saga over Australian Prudential Regulation Authority (APRA)’s GPS120 framework for general insurers looks close to a resolution beneficial to the Kangaroo market. The latest draft of the standard – released for consultation by APRA on December 19 – includes Kangaroo bonds as Australian assets for the first time.
European Investment Bank (AAA/Aaa/AAA) (EIB) has completed its 2007 funding task, raising the equivalent of €55 billion. The supranational’s largest issuance currency this year was the euro with 37.5 per cent, followed by US dollars – 26.3 per cent – sterling and yen, with 20.1 per cent and 4 per cent respectively.
A survey of Australian investment managers released on December 19 by Russell Investment Group (Russell) indicates that investors are more bearish across the board than their US peers, and that a downturn in sentiment on equities has not been mirrored by a more positive view on bonds.
One of the two German federal state development agencies with outstanding bonds in the Kangaroo bond market, NRW.BANK (AA-/Aa1/AAA), has now completed its funding task for 2007 and is making funding plans for 2008.