News
Inter-American Development Bank (IADB) (AAA/Aaa) priced a new May 2021 Kauri bond on January 15. According to KangaNews data, IADB has previously issued three Kauri bonds – in 2007, 2008 and 2009. Only the most recent of these, a NZ$100 million (US$64.9 million) transaction printed in July 2009, is currently outstanding. This bond will mature in December 2017.
The solid pace of deal flow in Australia continued into the second week of January with more than A$3 billion (US$2.1 billion) of new issuance priced. It also shows little sign of abating, with the Australian Office of Financial Management revealing plans to syndicate a new nominal bond. In New Zealand, World Bank placed 43 per cent of its NZ$550 million five-year Kauri with domestic investors.
On January 15, ABN AMRO Bank (ABN AMRO) (A/A2/A) disclosed plans to carry out an investor update in Australia and Asia commencing during the week of January 18. According to KangaNews data, the borrower last visited the Kangaroo market in April 2015. That A$225 million (US$156.9 million) fixed-rate transaction had pricing of 115 basis points over semi-quarterly swap.
International Finance Corporation (IFC) (AAA/Aaa) launched and priced a new 10.5-year Kangaroo bond on January 14. The transaction is IFC's second Australian deal of 2016 after it priced a A$300 million (US$208.2 million) increase to its February 2021 line on January 8.
Commonwealth Bank of Australia (CommBank) (AA-/Aa2/AA-) launched and priced a new self-led, five-year, senior-unsecured transaction on January 12, in what is the bank's first public deal in the domestic market this year.
KfW Bankengruppe (KfW) (AAA/Aaa/AAA) became the latest top-tier supranational, sovereign and agency issuer to return to the Kangaroo market in 2016 pricing a new five-year transaction on January 13.
After pricing the Kangaroo market's first new deal of the year on January 6, World Bank (AAA/Aaa) launched and priced a new five-year Kauri bond on January 13. International Finance Corporation priced the Kauri market's first deal of 2016 on January 7 in tap format, adding NZ$325 million (US$212.5 million) to its May 2020 line.
Asian Development Bank (ADB) (AAA/Aaa/AAA) priced its first Kangaroo deal of 2016 on January 12. According to KangaNews data, ADB issued A$1.55 billion (US$1.08 billion) into the Kangaroo market in each of 2014 and 2015.
The issuer and leads on the first Australian major-bank benchmark issuance of 2016 say the transaction clearly demonstrates that substantial demand can be found in global markets despite growing turbulence. But they counsel caution as volatility shrinks execution windows and necessitates careful action.