News
On October 27, Kommunalbanken Norway (KBN) (AAA/Aaa) printed a A$40 million (US$30.5 million) increase to its existing December 2026 Kangaroo bond from a minimum volume of A$25 million. The transaction priced flat against initial price guidance of 72 basis points over semi-quarterly swap. According to KangaNews data, the line was introduced in June this year for volume of A$50 million. The bond was most recently tapped on October 7 for A$60 million at 72 basis points over swap.
National Australia Bank (NAB) ascribes lower margins from, in particular, personal-banking and housing lending to the impact of higher funding costs in the past six months. In its full-year results, released on October 27, NAB disclosed that by the end of September this year average long-term wholesale funding costs had reached their highest level since 2012.
Following its debut ethical-bond transaction in the Australian domestic market, Teachers Mutual Bank (Teachers Mutual) reveals that certification drove new investor interest but not a pricing benefit. Teachers Mutual's entire debt programme is ethically certified, representing the company's holistic funding and investment strategies.
On October 26, EUROFIMA (AA+/Aa1) printed a A$30 million (US$23 million) increase to its January 2027 Kangaroo bond. The transaction priced in line with initial guidance of 71 basis points over semi-quarterly swap. According to KangaNews data, the line was introduced in July this year for volume of A$75 million. It was most recently tapped in in August for A$20 million at 71 basis points over swap.
Inter-American Development Bank (IADB) (AAA/Aaa) priced a A$50 million (US$38.4 million) increase to its April 2027 Kangaroo bond on October 26. Initial price guidance on the transaction was 50 basis points over semi-quarterly swap. IADB priced a A$50 million tap to the same line with the same margin on October 25.
In the wake of a return to the Australian domestic market by Australia Pacific Airports Corporation (Melbourne Airport), the issuer says a positive response from international and domestic accounts provided renewed confidence in domestic capacity. Noting the relative scarcity value in corporate bonds, intermediaries agree that the outcome is encouraging. But they are not predicting a deluge of additional supply just yet.
On October 25, Inter-American Development Bank (IADB) (AAA/Aaa/AAA) priced a A$50 million (US$38.1 million) increase, from a minimum volume of A$25 million, to its April 2027 Kangaroo bond. Initial price guidance on the transaction was 50 basis points over semi-quarterly swap. According to KangaNews data, IADB introduced this line on October 4, printing A$125 million at 50 basis points over swap.
On October 25, Rentenbank priced a A$50 million (US$38.1 million) increase to its March 2027 Kangaroo bond. Initial price guidance on the transaction was in the area of 55 basis points over semi-quarterly swap. According to KangaNews data, this line was introduced in September for volume of A$100 million and pricing of 55 basis points over swap. The line was tapped on October 11 for a further A$50 million, also at 55 basis points over swap.
On October 24, International Finance Corporation (IFC) (AAA/Aaa) printed a A$50 million (US$38.1 million) increase to its July 2026 Kangaroo bond, from a minimum volume of A$30 million. The transaction priced flat against initial guidance of 49 basis points over semi-quarterly swap. According to KangaNews data, IFC introduced this line in January this year for volume of A$125 million. It was most recently tapped in September, for A$50 million at 49 basis points over swap.
Teachers Mutual Bank priced A$100 million (US$76.3 million) of three-year notes in an ethical bond after becoming the first Australian institution to have its entire wholesale debt issuance programme ethically certified in 2015. Meanwhile, corporate activity resumed in New Zealand with transactions from Toyota Finance New Zealand and Air New Zealand.
On October 21, Australia Pacific Airports Corporation (Melbourne Airport) (A-/A3) printed A$200 million (US$152.2 million) from a minimum volume of A$100 million, in a 10-year domestic transaction priced. Initial price guidance on the transaction was 175 basis points over semi-quarterly swap. According to KangaNews data, Melbourne Airport last issued in the domestic market in November last year when it printed A$120 million of 10-year notes at 175 basis points over semi-quarterly swap.
On October 20, Air New Zealand (Baa2) printed NZ$50 million (US$36.1 million) in its latest domestic transaction. Final pricing came in at 180 basis points over mid-swap - the mid-point of indicative pricing of 175-185 basis points over mid-swap. According to a NZX announcement, proceeds from the transaction will be used for general corporate purposes, including partial repayment of Air New Zealand's existing bonds maturing on November 15 this year.