News

Asian Development Bank took advantage of relative market stability following the first Reserve Bank of Australia board meeting of the new year and competitive Australian dollar funding costs to bring its latest Kangaroo gender bond to market. Deal sources say investors continue to adjust to the higher rates environment, fostering a supportive new-issuance environment.

ANZ Banking Group continued its tier-two issuance on 6 February with the Australian dollar market’s first 15-year non-call 10-year benchmark transaction. The borrower says the deal was prompted by reverse enquiry but distribution went far wider, and it hopes this issuance will help develop the longer-dated callable tenor in the domestic market.

ANZ Banking Group became the first Australian bank to issue callable tier-two securities this year with the 30 January pricing of a €1 billion (US$1.1 billion) 10-year non-call five-year tier-two transaction. The Sustainability format (SDG) continues to generate good support from EUR investors. Tier-two sentiment appears to have improved following the Australian Prudential Regulation Authority approval of Westpac Banking Corporation’s request to redeem a domestic tier-two note on its first call date.