Wholesale funding contributes to Moody's BOQ downgrade review [UPDATED]
Moody's Investors Service (Moody's) placed its A2 rating on Bank of Queensland (BOQ) on review for downgrade on October 20, citing the bank's degree of reliance on wholesale funding – especially in short-term markets – as one of two key reasons for the review. BOQ is already rated BBB+ by both the other two main rating agencies.
APRA gives covered bonds regulatory rubber stamp, with full rules to follow
The Australian Prudential Regulation Authority (APRA) sent a letter to all Australian authorised deposit-taking institutions (ADIs) on October 20, confirming the removal of the regulatory prohibition on their issuance of covered bonds. APRA expects to produce a new prudential standard for covered bonds, but confirms in its letter that issuance will be allowed in advance of that standard being finalised.Woolworths launches A$500 million domestic hybrid offer
A prospectus for Woolworths' (A-/A3) offer of an indicative A$500 million (US$509 million) hybrid security was lodged with the Australian Securities Exchange on October 18. The transaction includes a specifically-targeted institutional offer, although fund managers contacted by KangaNews in advance of the official launch say they have yet to draw conclusions on their likely level of interest.Kangaroo deal flow returns after two months with KfW tap [UPDATED]
KfW Bankengruppe (KfW) (AAA/Aaa/AAA) launched and priced an increase to its May 2021 Kangaroo maturity on October 19. The A$250 million (A$257.6 million) tap adds to a line which was introduced in May this year and has been increased twice already, with the amount outstanding in the line after pricing on the increase being A$1.65 billion.More Kauris as ADB completes second-ever deal [UPDATED]
Asian Development Bank (ADB) (AAA/Aaa/AAA) priced a new NZ$150 million (US$118.8 million) five-year Kauri transaction on October 18. The new deal is ADB's second-ever Kauri transaction. It is the third Kauri issue within three weeks, with the most recent issue being the largest of the year: a NZ$350 million (US$281.1 million) tap from International Finance Corporation (AAA/Aaa).