News
KangaNews is pleased to present the results of this year's Fixed-Income Research Poll: the only independent poll of fixed-income investors' views on relevant research in the Australian market. This year's poll saw a record response from qualifying institutional investors, and a strong degree of consistency in the results.
Australian buy-side demand for higher-yielding debt has been evident for some time but market technicals have inhibited participation, market participants insist. The presence of a substantial local bid for the first local-currency denominated term loan B (TLB) facility for an Australian issuer could see this change.
On June 4, Rabobank Nederland (A+/Aa2/AA-) disclosed that it is preparing to embark on a series of debt investor meetings in Australia and Asia commencing on June 8. The meetings will explore a potential tier-two transaction which, if it comes to fruition, would likely be the first such deal in the Kangaroo market since Wachovia Bank priced A$400 million (US$311.2 million) of 10-year bullet subordinated bonds in May 2007.
The attractiveness of the New Zealand market to offshore buyers enabled Rabobank Nederland New Zealand Branch (Rabobank New Zealand) to issue its first local deal in listed format. As the first financial institution to execute a deal in this way in New Zealand, the issuer reveals the extent to which this execution method unlocked demand.
Rabobank Nederland New Zealand Branch (Rabobank New Zealand) (A+/Aa2/AA-) priced a new five-year issue of up to NZ$200 million (US$142.4 million) in the New Zealand market on June 3. The transaction is in listed format, and as such it was eligible for marketing to offshore investors without the approved issuer levy.
A lack of any explicit forward guidance by the Reserve Bank of Australia (RBA) at its May monetary policy meeting defied widespread expectations for the reintroduction of an easing bias. The bank changed firmly into neutral gear, analysts say, when it left the cash rate on hold at 2 per cent at its meeting on June 2.
Dexus Wholesale Property Fund (DWPF) (A) is exploring a return to Australian dollar issuance via National Australia Bank and Westpac Institutional Bank, the arrangers disclosed on June 2. According to KangaNews data, DWPF last issued 12 months ago when it priced a A$100 million (US$76.3 million), five-year deal.
Corporación Andina de Fomento (CAF) (AA-/Aa3/AA-) mandated and priced an increase to its June 2025 Kangaroo line on June 1. According to KangaNews data, the deal is a quick market return for the issuer which introduced the line on May 27 at volume of A$150 million (US$114.6 million) and pricing of 165.25 basis points over Australian government bond.
Investor and intermediary participants in the Australian domestic market's latest green-bond transaction identify increasing demand for deals beyond specialist socially responsible investment (SRI) portfolios. Nor should it be necessary for green bonds to price tighter than vanilla bonds to grow the green bond market – in fact, one investor insists this is a product in which the buy side should have skin in the game.
The trend of Australasian corporate borrowers opting to raise funds offshore – namely Europe and the US – continues. Meanwhile Australian dollar and securitisation deal flow maintains a steady pace.