News
Supranational, sovereign and agency (SSA) deal activity continued on August 3, as International Finance Corporation (IFC) (AAA/Aaa) launched and priced a tap to its July 2026 Kangaroo bond. According to KangaNews data, IFC introduced this line in January for volume of A$125 million (US$95 million) and pricing of 55.5 basis points over Australian Commonwealth government bond (ACGB). The line has been subsequently tapped several times since and most recently in June, for A$30 million at 54 basis points over ACGB.
The issuer of the latest Australian-origin high-yield bond transaction in the US dollar market highlights a developing Australian bid as a notable element of its return to issuance. TFS Corporation (TFS) says it hopes the complementary local bid may signal the potential for a domestic high-yield option to emerge, but it also notes the ongoing dominance and supportive nature of US-based investors.
Deal flow was moderate in the last week of July. World Bank printed a total of A$850 million (US$640.4 million) in taps to its January 2021 and October 2026 Kangaroo bonds and Commonwealth Bank of Australia topped up its August 2017 domestic line by A$500 million. Meanwhile, Wellington International Airport printed a new curve-extending domestic deal.
On July 29, Nederlandse Waterschapsbank (NWB) (AAA/Aaa) priced an increase to its September 2026 Kangaroo bond. According to KangaNews data, the line was introduced in February for volume of A$50 million (US$37.6 million) and pricing of 77 basis points over Australian Commonwealth government bond (ACGB). It was most recently tapped by A$55 million on July 1, at 79.5 basis points over ACGB.
On July 28, World Bank (AAA/Aaa) priced taps to its January 2021 and October 2026 Kangaroo bonds. According to KangaNews data, the 2021 line was introduced in January for volume of A$550 million (US$413.8 million) and pricing of 59 basis points over Australian Commonwealth government bond (ACGB). The October 2026 line was issued in April this year for volume of A$150 million. This transaction priced at 58 basis points over ACGB.
KommuneKredit (AAA/Aaa) priced an increase to its outstanding 2.9% November 2026 Kangaroo bond, a July 27 announcement revealed. According to KangaNews data, the line was introduced in May this year for volume of A$50 million (US$37.5 million) and pricing of 75.5 basis points over Australian Commonwealth government bond (ACGB). The bond was most recently tapped on July 25 by A$30 million at 77 basis points over ACGB.
Wells Fargo & Company printed a jumbo A$1.4 billion (US$1.04 billion) five-year deal in global format on July 20. Hard on the heels of this issue, the same issuer priced A$250 million of 10-year global notes the following day. Meanwhile, Export-Import Bank of Korea printed the first increase to its debut Kauri line and Columbus Capital printed its first securitisation deal since 2014.