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Kommunalbanken Norway (KBN) (AAA/Aaa) priced a new, 10.5-year Kangaroo transaction on June 2. According to KangaNews data, KBN was most recently in the Kangaroo market in March this year when it added A$100 million (US$72.5 million) to its July 2025 line at 68 basis points over semi-quarterly swap.
On June 2, Western Australian Treasury Corporation (WATC) (AA+/Aa2) priced a new fixed-rate, 2027 maturity A$700 million (US$506.8 million) transaction. According to KangaNews data, WATC most recently brought a syndicated deal to the domestic market in April this year when it issued A$1.1 billion of six-year notes. This transaction priced at 55 basis points over Australian Commonwealth government bond (ACGB) and was WATC's second benchmark deal for 2016.
The latest Kangaroo corporate deal to price demonstrates the growing faith global issuers have in the Australian dollar market even in the near absence of domestic supply, its leads claim. Meanwhile, investors say the A$1 billion deal printed by the Coca-Cola Company (Coca-Cola) on June 1 offered fair value. They also hail the emergence of Kangaroo deal flow to fill the domestic corporate gap.
On June 1, the Coca-Cola Company (Coca-Cola) (AA-/Aa3/A+) priced a new four-year and eight-year, senior-unsecured Kangaroo transaction. According to KangaNews data, the forthcoming transaction will be Coca-Cola's debut deal in the Kangaroo market. Coca-Cola Amatil (A-/A3) has a single, 2019 maturity, line outstanding for A$150 million (US$107.8 million).
On June 1, La Trobe Financial (La Trobe) priced its third-ever nonconforming residential mortgage-backed securities (RMBS) transaction. La Trobe Financial Capital Markets Trust 2016-1 has an aggregate volume of A$250 million (US$181.6 million) and an eight-tranche structure.
Commonwealth Bank of Australia (CommBank) priced a new, self-led subordinated notes offer in the domestic market on May 31 following a launch announcement the same day. According to KangaNews data, CommBank priced its most recent previous domestic subordinated issue in October 2014. The A$1 billion (US$716.2 million) tier-two notes were issued at 195 basis points over bank bills and, according to Yieldbroker ratesheets, were indicated at 188 basis points over bank bills at the close on May 27.
In the wake of the first Reg S-only transaction issued off its newly signed EMTN programme, Lendlease tells KangaNews that execution was based on a desire to widen investor access ahead of future funding needs rather than a one-off judgement on pricing or other factors. Asian Reg S demand is solid, Lendlease's lead managers add, but conducive conditions in competing markets lead them to believe a significant step up in Australian-origin Reg S deal flow is unlikely.
The latest launch of a tier-one securities offer by an Australian major bank means three of the big four are in the market for hybrids at the same time – two domestically and one offshore. National Australia Bank (NAB) announced the latest domestic retail launch on May 31, disclosing plans to print an indicative A$750 million (US$538.7 million) of additional tier-one qualifying securities.
It was a huge week for jumbo corporate Kangaroos in the Australian market, as the Coca-Cola Company priced A$1 billion (US$725.1 million) on June 1 and Apple issued A$1.425 billion on June 3. Meanwhile, L-Bank returned to the Kauri market, printing NZ$125 million (US$85.3 million) of December 2017 notes.
The first Asian bank to issue a covered bond in the Kangaroo market says it sees Australian dollars as one of three currencies on which it will focus covered-bond issuance going forward. DBS Bank (DBS) has a strong deposit-funding base and consequently a limited call on wholesale markets, but it says Australian issuance is a logical component of its programme and expects more to come in both covered and senior-unsecured format.
Lack of deal flow, new protocols around pre-deal disclosure, single-name exposure limits and execution risk: all factors that Australia's latest corporate issuer and its lead managers insist are categorically not barriers to large, cost-effective domestic deals. Port of Brisbane printed A$250 million (US$179.3 million) of new seven-year paper with an oversubscription of more than two times.