News
On 16 January, NWB Bank (AAA/Aaa) launched a minimum A$25 million (US$18 million) tap of its May 2029 Kangaroo bond, via Mizuho Securities. The forthcoming deal is being marketed at 54 basis points area over semi-quarterly swap, equivalent to 67 basis points area over Australian Commonwealth government bond. Pricing is expected on the day of launch.
The New Zealand Financial Markets Association (NZFMA) has opened a consultation period on the idea of supplementing – though not replacing – the existing bank-bill reference rate (BKBM) with an overnight risk-free rate (RFR). The goal is better to align the New Zealand market with evolving global norms, specifically the International Organization of Securities Commissions (IOSCO)’s principles for financial benchmarks.
In the wake of 2019’s first benchmark Kangaroo deal from a euro-based funder in 2019, the issuer – European Investment Bank (EIB) – says Australian dollar economics are currently challenging for euro funders but opportunities are available.
On 15 January, Columbus Capital (Columbus) launched its residential mortgage-backed securities (RMBS) transaction, Triton Trust 2019-1. The forthcoming deal is capped at A$400 million (US$288.5 million) and is expected to price as early as the day after launch.
On 15 January, World Bank (AAA/Aaa) launched a new, minimum NZ$300 million (US$204.8 million) five-year Kauri bond. The forthcoming deal is being marketed at 41 basis points area over mid-swap. Pricing is expected on the day after launch, according to lead managers ANZ, BNZ and Commonwealth Bank of Australia.
On 14 January, European Investment Bank (EIB) (AAA/Aaa/AAA) mandated Deutsche Bank, RBC Capital Markets and TD Securities for a minimum A$300 million (US$216.3 million) increase to its August 2024 Kangaroo bond. The forthcoming deal is being marketed in the area of 47 basis points over semi-quarterly swap and 53.25 basis points over Australian Commonwealth government bond. Pricing is expected on the day after launch.
The kind of market conversation and information sharing for which KangaNews events are renowned was no less important during the COVID-19 pandemic, even if in-person meetings were impossible. In response, KangaNews developed and deployed a raft of new ways for market participants to come together via digital means. Please enjoy this short video that provides a flavour of our capabilities.
Primary issuance for 2019 got underway in the second week of January. Themed issuance was in focus, with Asian Development Bank pricing a A$1 billion (US$719 million) green bond and International Finance Corporation's A$400 million social-bond tap. Meanwhile, Commonwealth Bank of Australia printed a A$2.5 billion dual-tranche senior deal.
Kaylene Gulich has been appointed chief executive at Western Australian Treasury Corporation (WATC), commencing in February. Gulich was previously deputy chairperson of the WATC board, and has also held “a number of senior executive roles” in the state’s treasury department and been a board member of the Gold Corporation.