News

Canada Pension Plan Investment Board returned to the Kangaroo market on 22 February with a 10-year print that smashed the record for deal size at this duration by any borrower outside the domestic government sector. The issuer says the scale of demand took it by surprise despite its commitment to introducing new bond lines via substantial benchmark transactions.

There has been no sign of letup or digestion issues in the Australian dollar market, with the securitisation and bank bond sectors vying to be the top performer as the calendar ticked into the second half of February. Deal highlights include issuer records for Rabobank Australia and Firstmac, and a largest-ever nonbank securitisation debut – by ORDE Financial.

New Zealand Local Government Funding Agency is confident about its ongoing Australian dollar issuance prospects despite expressing disappointment at the Reserve Bank of Australia process that saw the issuer initially granted repo eligibility before having that status withdrawn. The issuer believes the outcome highlights anomalies in the expanded list of assets eligible for repo in Australia but will not take its claims further.

Australian dollar market capacity for financial institution issuance at the start of 2024 continues to surprise even seasoned market participants. Rabobank Australia became a beneficiary on 20 February, pricing A$2.15 billion – comfortably its largest print size of all time – with deal sources saying the buy side has not issued a murmur of indigestion so far.