News
Canada’s provinces have a longstanding presence in the Kangaroo market, with an issuance history stretching back more than two decades. The sector roared back to relevance in 2024 after an extended period of declining issuance volume, with four new benchmark deals – all of which would have smashed the previous record for provincial issuance in Australian dollars.
Monetary, market and geopolitical conditions continue to shift at a heightened pace. But global supranational, sovereign and agency issuers say their approach to debt issuance and other positive factors – including conducive conditions for Australian dollar supply – allow them to stay ahead of the curve.
The divergent fortunes of the Kangaroo and Kauri markets stand out in the 2024 KangaNews survey of global supranational, sovereign and agency sector borrowers. The disparity seems set to continue, too, with the Australian dollar market predicted to be a vogue issuance destination in the coming months while New Zealand remains very much a niche proposition.
Lead managers on Banco Santander’s first-ever tier-two deal in the Kangaroo market highlight “insatiable” demand for the asset class, suggesting interest should be strong enough to support follow-on supply. The domestic real-money bid came through for Santander, facilitating a significant price compression and notable performance on the break.