News
Hard on the heels of its dual-tranche debut Kangaroo in September, Deutsche Bahn returned to the Australian market for a 15-year transaction on 23 October. The A$150 million (US$116.7 million) deal is the longest issued for a corporate Kangaroo post-crisis, according to KangaNews data. Deal sources insist the transaction further demonstrates the ability of the Australian dollar market to print at maturities competitive with offshore markets.
Ausgrid Finance (Ausgrid)’s selection of the Australian dollar market for its first public bond deal makes sense in the context of the issuer’s likely call on this market going forward, deal sources say. The issuer says it achieved a good pricing outcome while exceeding volume expectations, supported by solid market fundamentals and good demand for infrastructure assets.
On 26 October, Fonterra Co-operative Group (Fonterra) (A-/A) launched a minimum A$100 million (US$77 million), 10-year Australian dollar bond with price guidance of 135 basis points area over semi-quarterly swap. The deal is expected to price on or before 27 October, according to joint lead managers ANZ, Commonwealth Bank of Australia, National Australia Bank and Westpac Institutional Bank.
NRW.BANK (AA-/Aa1/AAA) mandated a new Kangaroo transaction with May 2028 maturity late in the Australian day on 25 October. The deal is for A$100 million (US$77 million) and is being marketed at 75 basis points over Australian Commonwealth government bond or 70 basis points over swap via Nomura, RBC Capital Markets and TD Securities. Pricing is expected on 26 October.
On 25 October, Fonterra Co-operative Group (Fonterra) (A-/A) began taking indications of interest for a potential 10-year benchmark Australian dollar bond with price guidance of 135-140 basis points area over semi-quarterly swap. A 26 October launch is being explored by joint lead managers ANZ, Commonwealth Bank of Australia, National Australia Bank and Westpac Institutional Bank.
On 25 October, Bluestone Group (Bluestone) began taking indications of interest for its Sapphire XVII-2 residential mortgage-backed securities (RMBS) transaction. Commonwealth Bank of Australia and Macquarie Bank are leading.