News
International Finance Corporation (IFC) (AAA/Aaa) prcied an increase to its 2026 Kangaroo bond on March 22, in the supranational's eighth Australian dollar deal of the year. According to KangaNews data, all but two of these have been in the 2026 maturity, which was introduced in January in a A$125 million (US$94.9 million) transaction and has A$275 million on issue ahead of the latest tap.
Following a mandate announcement earlier this month, CAF – Development Bank of Latin America (CAF) (Aa3/AA-/AA-) priced a new, five-year Kangaroo bond on March 22. According to KangaNews data, the supranational now has outstanding volume of A$1.05 billion (US$796.9 million) in the Kangaroo market, A$350 million of which will mature in September this year.
Issuer and lead managers on Toronto Dominion Bank (TD Bank)'s record-breaking Kangaroo transaction say the deal opens the way to additional Kangaroo market supply from Canadian banks and global financial institutions (FIs) more generally. TD Bank itself hopes to continue to be a regular issuer going forward.
ING Bank Australia (ING Australia) priced its first residential-backed mortgage securities (RMBS) transaction of 2016 on March 18. Expected ratings were assigned to IDOL 2016-1 Trust on March 14. The transaction was upsized from minimum aggregate volume of A$500 million (US$378.5 million).
Commonwealth Bank of Australia (CommBank) has accessed local residential mortgage-backed securities (RMBS) and offshore senior-unsecured markets in March. Wider margins on both transactions reflect broader market moves, but the issuer says pricing continues to follow cyclical trends – while liquidity is available in volume for well-timed trades.
Slower primary-market activity marked the last full week before the Easter holiday, though New Zealand retained its deal momentum. ANZ New Zealand priced its first deal of 2016 for NZ$625 million (US$427.1 million), and Genesis Energy returned to the domestic market, for the first time since 2013, with a NZ$100 million transaction.
Newcastle Permanent Building Society (NPBS) (BBB+/A2) priced a new senior-unsecured three-year floating-rate Australian dollar deal on March 16. According to KangaNews data, NPBS accessed the domestic market twice last year, pricing A$225 million (US$167.9 million) of three-year and A$50 million of five-year floating-rate notes in February and March respectively. Pricing was 110 and 135 basis points over bank bill swap rate.
AusNet Services (AusNet) says its ability to print US$375 million of 2071 non-call 5.5-year Reg S hybrid notes came as improving offshore markets offered some clarity around fair pricing of hybrid instruments. The deal's lead managers insist a more positive environment for credit and risk should support ongoing activity, even as markets continue to be characterised by fickle execution windows.
On March 16, Queensland Treasury Corporation (QTC) (AA+/Aa1) priced a syndicated increase to its July 2026 benchmark bond. According to KangaNews data, this will be the second public tap to this line which was introduced in October last year, and increased in January by A$1.1 billion (US$823.8 million) at 66.25 basis points over Australian Commonwealth government bond.
On March 16, ANZ New Zealand (ANZ NZ) (AA-/Aa3/AA-) priced a new dual-tranche domestic deal. An announcement lodged with the NZX on March 10, revealed the issuer was seeking to raise NZ$100 million (US$66.6 million) of March 2019 floating-rate notes (FRN) and the same volume of March 2021 fixed-rate bonds. The transactions are being targeted at institutional and retail investors in New Zealand, and ANZ NZ adds that it has the ability to accept unlimited oversubscriptions on both deals.
Toronto-Dominion Bank (TD Bank) (AA-/Aa1) priced its new senior-unsecured December 2020 maturity transaction in the Australian market on March 15, a day after the deal was mandated. The transaction is TD Bank's fifth Kangaroo, after it issued a covered bond in October 2014 and three senior-unsecured deals in 2015 and 2016.