News
On July 19, Treasury Corporation of Victoria (TCV) (AAA/Aaa) priced a new fixed-rate, five-year green bond transaction. The transaction is the first green bond to be issued by an Australian semi-government issuer according to KangaNews data. The A$300 million (US$225.4 million) transaction follows a series of debt investor meetings undertaken by TCV in the week of July 11 in Australia.
Toyota Motor Credit Corporation (TMCC) (AA-/Aa3) priced a new, five-year Kangaroo transaction on July 19. The transaction was priced in line with guidance at 100 basis points over semi-quarterly swap. The mandate announcement, from July 18, followed a series of Australian investor update calls undertaken by TMCC and Toyota Finance Australia (TFA) on July 7.
Newcastle Permanent Building Society (NPBS) (BBB+/A2) has priced an increase to its April 2020 domestic line on July 19. The issue was for minimum volume of A$50 million (US$37.9 million). According to KangaNews data, the line was introduced in March last year in a A$50 million. transaction that priced at 135 basis points over bank bills.
On July 19, South Australian Government Financing Authority (SAFA) (AA/Aa1) launched a syndicated re-opening of its July 20 2026 select line, for up to A$500 million (US$375.9 million). At the same time, New South Wales Treasury Corporation (TCorp) mandated a new, minimum A$500 million, February 2030 nominal syndicated benchmark bond.
Export-Import Bank of Korea printed the second Kauri bond without a triple-A rating since 2010 during the second week of July. Meanwhile, EMTN proved to be a compelling option for Société Générale and Coca-Cola Amatil, as they issued Australian dollar transactions in subordinated and senior format respectively.
Following its return to Kangaroo issuance after almost a decade out of the market, NRW.BANK says it hopes to build on the small, 10.5-year deal it printed on July 14. Having expended significant energy on the Kangaroo market over the years, the German agency hopes to grow its new line and, subject to investor support, establish more in time.
The latest Australian-origin corporate issuer to plump for the EMTN option over the domestic market says this was based on a range of factors including strong demand from European and Asian investors in particular. The transaction also brings back into the spotlight discussions around pricing and execution certainty in the Australian domestic market.
Market conditions, demand dynamics and relative pricing are creating a compelling case for the EMTN – rather than Kangaroo – format to be used by international banks for Australian dollar tier-two issuance. Leads on the latest Australian dollar EMTN tier-two deal say both formats have their place, but if issuers are prepared to be flexible on volume the EMTN option can be appealing.
NRW.BANK (AA-/Aa1/AAA) priced its first Kangaroo transaction for almost a decade on July 14, following a mandate announcement the same day which revealed the issuer planned to print a new long 10-year deal. The German agency roadshowed in Australia and Japan in mid-January to discuss Australian dollar appetite.