News
A largely unexpected hike from Australia’s central bank, higher swap spreads and investor interest supported two KfW Bankengruppe Kangaroo taps in the week ending 5 May, taking the issuer’s total Australian dollar issuance in 2023 to a new record for January-May.
Tight new-issue concessions, ample liquidity, the availability of tenor and favourable cross-currency economics are among the drivers sending a host of Australian corporate names on a funding expedition to Europe in recent weeks, deal sources say. Three such deals priced and another two circling since mid-April have been the subject of comment in the European market and demonstrate the clear advantage euro issuance offers in the H1 corporate funding window.
High inflation continues to require a policy response that is squeezing New Zealand economic outcomes, but the Reserve Bank of New Zealand’s May 2023 Financial Stability Report suggests a baseline level of confidence in the foundations. The reserve bank is also sufficiently comfortable with local credit standards to have unwound a key macroprudential measure.
Reverse enquiry prompted World Bank to tap a 10-year maturity in a transaction that also drew the attention of a significant cohort of domestic investors, deal sources say. As expectations for inflation near a plateau, the issuer may come close to a record year in the Kangaroo market.
