News
The outperformance of KfW Bankengruppe (KfW)’s Kangaroo green bond in the secondary market relative to its vanilla bonds during 2017 has prompted two taps of this line in less than three months, the issuer says. KfW also discusses the opportunity set for the agency in the Kangaroo green-bond market.
Speaking at a roundtable hosted by KangaNews, representatives of Australia’s largest nonbank lenders expressed a degree of confidence that the regulatory impost hanging over the sector may not fundamentally damage their business models. But they are watchful and wary of what they see as the potential for regulatory overreach.
On 20 October, Northern Territory Treasury Corporation (NTTC) (Aa2) mandated a new, April 2028 domestic benchmark bond. The transaction is expected to launch in the near future, according to lead managers ANZ, UBS and Westpac Institutional Bank.
Following the completion of a series of investor meetings, Ausgrid (Baa1) disclosed on 20 October that it is taking indications of interest on a seven-year domestic deal. Mizuho Securities, National Australia Bank and Westpac Institutional Bank have the mandate, which is for fixed- or floating-rate notes with an indicative margin of 130 basis points over swap area.
Kiwibank (A/A1/AA-) launched its latest Kangaroo transaction on 20 October. The 10-year, fixed-rate deal has minimum volume of A$100 million (US$78.6 million) and indicative pricing of 157 basis points over semi-quarterly swap. It is expected to price on day of launch via ANZ.
Pepper Australia (Pepper) began taking indications of interest on the Class A1-S, Class A2 and Class B tranches of its latest residential mortgage-backed securities issue, Pepper Residential Securities Trust No.19 (PRS19), on 19 October. The forthcoming deal is expected to launch during the week of 23 October, according to arranger, National Australia Bank, and additional Australian dollar lead managers Commonwealth Bank of Australia and Westpac Institutional Bank.
On 19 October, Kiwibank (A/A1/AA-) mandated a potential 10-year Kangaroo transaction. The deal is expected ‘in the near future’, according to lead manager ANZ.
Royal Bank of Canada Sydney Branch (RBC Sydney) (AA-/A1/AA) launched a new one-year benchmark bond on on 19 October. The deal has indicative price guidance of 30 basis points area over three-month bank bills, according to sole lead RBC Capital Markets.