News
Inter-American Development Bank (IADB) (AAA/Aaa/AAA) launched a minimum A$50 million (US$34.9 million) increase to its February 2028 Kangaroo bond on 7 June, with indicative pricing of 41 basis points area over swap and 49 basis points area over Australian Commonwealth government bond. TD Securities is leading.
South Australian Government Financing Authority (SAFA) came to the fore in Australian alternative reference rate (ARR) innovation on 6 June, when it priced the first-ever deal linked to the Australian overnight index average (AONIA) reference rate. Deal sources say the rate is not meant to be a replacement for bank bill swap rate (BBSW), but a part of a broader suite of products Australian issuers and investors can access better to suit their needs.
On 7 June, Vicinity Centres (Vicinity) (A/A2) mandated Commonwealth Bank of Australia and National Australia Bank to arrange a series of investor meetings in Asia and Australia, commencing 11 June, regarding a potential Australian dollar denominated deal.
BNG Bank (AAA/Aaa/AAA) launched a minimum A$25 million (US$17.4 million) increase to its April 2029 Kangaroo bond, on 7 June. Indicative price guidance for the forthcoming transaction is 52 basis points area over semi-quarterly swap, equivalent to 63.25 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to sole lead manager ANZ.
On 7 June, Mercury revealed plans for a NZ$300 million (US$198.7 million) subordinated-capital transaction to New Zealand retail and institutional investors. Full details for the transaction are expected to be released in the week beginning 10 June, when the offer opens. Forsyth Barr is arranger for the transaction and joint lead manager alongside BNZ and Deutsche Craigs.
On 7 June, KfW Bankengruppe (KfW) (AAA/Aaa) launched a minimum A$150 million (US$104.7 million) increase to its June 2022 Kangaroo bond. The forthcoming transaction is being marketed at 33 basis points area over semi-quarterly swap, equivalent to 40.5 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch, according to sole lead manager Nomura.
Substantial growth in Australian investor participation in sovereign, supranational and agency (SSA) Kangaroo issuance is in large part attributable to the continued evolution of sustainability-linked issuance, market participants say. This could have further positive consequences in primary and secondary markets as SSAs build sustainability bond curves.
On 5 June, Caltex Australia (Caltex) (BBB+ by S&P) mandated MUFG Securities and National Australia Bank to organise fixed-income investor meetings in Australia and Hong Kong, regarding a potential seven-year domestic deal. The meetings will commence 12 June.