News
On 23 August, Inter-American Development Bank (IADB) (AAA/Aaa) launched a minimum A$50 million (US$36.6 million) tap of its June 2029 Kangaroo. The forthcoming deal is expected to price on the day of launch, and has indicative price guidance of 41 basis points area over semi-quarterly swap, equivalent to 53 basis points area over Australian Commonwealth government bond. Mizuho Securities is sole lead manager.
NWB Bank (AAA/Aaa) launched a minimum A$15 million (US$11 million) increase of its July 2028 Kangaroo on 23 August, via TD Securities. The forthcoming deal is being marketed at 56 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.
On 23 August, World Bank (AAA/Aaa) launched its new, benchmark two-year Kangaroo bond on a blockchain platform. Indicative price guidance for the forthcoming deal is 23 basis points area over semi-quarterly swap. The bond is to be the first-ever created, allocated, transferred and managed using distributed ledger technology.
Conducive market conditions for Australia’s financial-institution issuers extended to covered bonds on 17 August, when ING Bank Australia (ING Australia) priced its debut deal in the format. Covered bonds can be viewed as a rainy-day product however deal sources say diversification and robust investor demand were the primary drivers, rather than market sentiment.
On 22 August, Bluestone Group (Bluestone) began taking indications of interest for its potential residential mortgage-backed securities (RMBS) transaction, Sapphire XIX 2018-2.
On 22 August, Credit Union Australia (CUA) (BBB/Baa1) revealed plans to hold fixed-income investor meetings regarding a potential three-year Australian dollar denominated floating-rate note (FRN) transaction. ANZ, Commonwealth Bank of Australia and National Australia Bank will arrange the meetings, which will take place in Sydney and Melbourne in the week commencing 27 August.
Bank Australia came to the market for its inaugural transaction on 20 August, pricing a A$125 million (US$92 million) three-year sustainability bond. The issuer tells KangaNews the nascent product was ideal for conveying its sustainability objectives, as well as attracting investors that would understand the mutual’s business model.
On 22 August, Spark Finance (Spark) revealed plans for a possible 5.5-year, unsubordinated fixed-rate bond transaction. The offer is expected to open on 29 August, and will be available to institutional and New Zealand retail investors.