News
On March 7 Dexia Municipal Agency (DexiaMA) (AAA/Aaa/AAA) started its 2007 Kangaroo activity with a A$100 million increase of its February 2012 obligations foncières led by RBC Capital Markets.
On March 13 the European Investment Bank (EIB) brought a substantial increase to its new January 2017 bonds, opened in January this year. The A$400 million increase doubles the size of the outstanding bonds in this maturity, and brings the EIB’s total outstanding in the Kangaroo bond market to A$5.05 billion. The increase to the 10-year deal was led by RBC Capital Markets and priced at 34.5 basis points over the reference government bond, which equates to 18 basis points through swap.
On March 14 KfW Bankengruppe (KfW) priced A$300 million of March 2017 bonds via ANZ Investment Bank and TD Securities. This is KfW’s second new point on the curve so far this year and it now has one of the deepest curves in the Kangaroo market.
On March 8 it was announced that Emirates Bank and National Bank of Dubai will merge, to create the largest bank in the six Arab Gulf states (Kuwait, Saudi Arabia, Bahrain, Qatar, Oman and the United Arab Emirates (UAE)), the Middle East and North Africa, with assets of US$45 billion.
On March 2 NIBC Bank's (A-/A3/A) chairman of the managing board, Michael Enthoven, announced during the presentation of the bank's 2006 earnings that it is preparing for a listing of up to 49.9 per cent of its shares in Amsterdam. Timing for the launch of the IPO was not available at the time of going to press (March 20).
The issuing and paying agency market is expecting new entrants following Austraclear’s decision not to accept any new business in the area while it conducts a wide-scale internal review.
On February 16 Rabobank priced a A$350 million CPI-linked bond via its domestic branch in Australia. This is the first inflation-linked bond to be issued in the Australian market in 2007 and the largest Kangaroo inflation-linked issue to date.
On February 13 the Inter-American Development Bank (IADB) started its 2007 Kangaroo activity with a A$200 million 14-year transaction, bringing its total outstanding in the market to A$1.825 billion.
On February 7 German federal state development agency, L-Bank, priced a A$200 million February 14 2011 bond, with ANZ Investment Bank (ANZIB) as sole lead. With this transaction L-Bank opened its second line in the Kangaroo market.
The German agency has so far opened one new line and increased two transactions in 2007. With limited liquidity it can be tricky to get the balance right between reopenings and new issues.
On February 1 Citigroup Inc. priced a three-tranche Kangaroo deal, with fixed and floating rate notes (FRNs) maturing on February 13 2012 and a fixed rate 10-year tranche maturing on February 13 2017.
Market participants are concerned that GPS120 will prevent a potential sector of investors - general insurers - from buying Kangaroo bonds.