News
KfW Bankengruppe (KfW) (AAA/Aaa/AAA) priced an increase to its April 2020 Kangaroo on January 15, adding yet more deal flow to a frenetic start to 2015 in Australia's supranational, sovereign and agency (SSA) market. According to KangaNews data, KfW introduced the April 2020 Kangaroo just a week before the new deal, pricing A$750 million (US$611.1 million) in the first Australian-market transaction of the new year.
Nederlandse Waterschapsbank (NWB) (AA+/Aaa) priced a new 10.5-year Kangaroo issue on January 15. The transaction is the issuer's first deal in the Australian market in 2015.
On January 15, Westpac Banking Corporation (Westpac) (AA-/Aa2/AA-) priced a new self-led five-year benchmark Australian dollar deal, in is the Australian market's first domestic transaction of 2015.
Westpac Banking Corporation kicked off domestic deal flow with a new five-year benchmark in the second week of January, while supranational, sovereign and agency (SSA) Kangaroo deal flow continued at a steady pace. On the other side of the Tasman Sea, Rentenbank priced the second Kauri deal of the year. KangaNews is delighted to announce that from January 2015 Australian and New Zealand distribution statistics will be published on the KangaNews website. These will be updated on a rolling, regular basis as data is disclosed. Click here to see the year's data so far.
Bank of Nova Scotia (BNS) (A+/Aa2/AA-) priced its new Australian dollar-denominated five-year covered bond deal on January 14. The Canadian residential-mortgage-backed deal was mandated on January 8 and launched on January 13.
On January 14, KfW Bankengruppe (KfW) (AAA/Aaa/AAA) priced an increase to its February 2025 Kangaroo. According to KangaNews data, the tap will be the third increase of a line which was introduced in August 2014 at a volume of A$450 million (US$367.0 million) and pricing of 57.5 basis points over Australian government bond (ACGB). It was later increased by A$150 million in both September and October, each time with pricing of 54.5 basis points over ACGB.
Inter-American Development Bank (IADB) (AAA/Aaa/AAA) priced an increase to its February 2020 Kangaroo bond on January 13. The increase is the first tap to a line which was originally launched, for volume of A$350 million (US$287.6 million), at 40.25 basis points over Australian government bond in July last year.
On January 13, Province of Manitoba (Manitoba) (AA/Aa1) priced an increase of its March 2025 Kangaroo bond. According to KangaNews data, the line was introduced in August last year at volume of A$100 million (US$82.3 million) and pricing of 71 basis points over Australian government bond. That transaction is also the borrower's most recent visit to the Australian dollar market.
On January 13, Rentenbank (AAA/Aaa/AAA) priced a new five-year benchmark Kangaroo line. This is the second time the borrower has visited the Australian dollar market in 2015, following closely behind a A$150 million (US$123.2 million) increase to its January 2025 line on January 7. That transaction had pricing of 54.5 basis points over Australian government bond.
The Australian dollar market opened for business at the earliest opportunity in 2015 as a supportive basis swap facilitated a swathe of Kangaroo deals from supranational, sovereign and agency (SSA) borrowers. A marked upsurge in interest in SSA Kangaroos from a notable investor sector leads market participants to ponder the extent to which SSAs could substitute for potentially lower supply in other high-grade asset classes in 2015.