News
AusNet Services (AusNet) accumulated final interest of A$800 million (US$609.8 million) for its A$425 million August 2027 domestic line printed on 7 February. This makes the deal the Australian market’s largest 10-year transaction for a corporate since 2007. The outcome was driven by growing domestic demand for 10-year paper and the issuer’s desire to price in line with its global curve.
Bank of Queensland priced Australia's first residential mortgage-backed securities (RMBS) transaction of 2017 on February 9. The transaction printed A$1 billion (US$762.5 million), twice its launch volume, and achieved capital relief equivalent to 5 basis points of common-equity tier-one capital by selling all six tranches, according to the issuer.
Queensland Treasury Corporation (QTC) (AA+/Aa1) printed a syndicated tap to its August 2027 benchmark on February 9, in the first syndicated deal pricing from an Australian state treasury corporation this year. The tap was upsized from minimum volume of A$500 million (US$381.3 million) and added to a line that had A$1.5 billion on issue at the end of 2016 according to QTC data.
Nordic Investment Bank (NIB) (AAA/Aaa) printed a new August 2027 Kangaroo bond on February 8. According to KangaNews data, the transasction is NIB’s second Australian dollar deal of 2017, after it printed a A$35 million (US$26.7 million) increase to its February 2026 line at 50 basis points over swap on January 13.
Swedbank (AA-/Aa3) printed its latest Australian dollar-denominated five-year benchmark on February 8. Initial price guidance on the deal was 120 basis points area over three-month bank bill swap rate (BBSW) and semi-quarterly swap.
On February 7, GPT Funds Management (GPT Funds) – the responsible entity of GPT Wholesale Office Fund No.1 (A-/S&P) – mandated a fixed-income investor presentation and conference call to take place on February 9. ANZ and National Australia Bank are arranging the investor presentation, with an Australian dollar denominated transaction potentially to follow.
International Finance Corporation (IFC) (AAA/Aaa) printed A$800 million (US$612 million) - upsized from a launch volume of A$300 million - on February 7. The transaction priced flat to initial guidance of 43 basis points over semi-quarterly swap. According to KangaNews data, IFC was most recently in the Kangaroo market in January when it added A$50 million to its July 2026 line. This transaction priced at 49 basis points over semi-quarterly swap.
On February 7, The Export-Import Bank of Korea (Kexim) (AA/Aa2/AA-) printed a new five-year Kangaroo bond and a tap to its June 2027 Kangaroo line. Initial price guidance on the new, five-year deal was in the area of 120 basis points over semi-quarterly swap and bank bill swap rate. The June 2027 tap issue was marketed in the area of 125-127 basis points over semi-quarterly swap.
Intermediaries say investor diversification continues to provide the Kauri market with appeal to global issuers, and despite some question marks over pricing appeal the market opened to a solid flow of activity in 2017. Kauri issuance typically tapers off in the second half of the calendar year, but market users are optimistic about 2017 due to a period of substantial redemptions.
African Development Bank (AfDB) (AAA/Aaa) priced a A$25 million (US$19.1 million) increase to its A$50 million July 2027 Kangaroo bond on February 3. The transaction priced flat to initial guidance of 51 basis points over semi-quarterly swap.
On February 2, Coöperatieve Rabobank Australia branch (Rabobank Australia) (A+/Aa2) printed A$400 million (US$305.6 million) - upsized from a launch volume of A$200 million - in a new, one-year senior-unsured transaction. The deal priced two basis points tighter than initial guidance of 55 basis points over three-month bank bill swap rate. According to KangaNews data, Rabobank Australia was most recently in the Australian domestic market in September last year when it added A$40 million to its May 2026 line. This tap issue priced at 121 basis points over semi-quarterly swap.