Canada, Nordics and wider Europe focus of predicted covered Kangaroo growth
The Kangaroo covered bond market could see a leap in issuance in 2011 with supply expected to come from a similar range of borrower jurisdictions as has been seen in the US, according to HSBC Bank (HSBC). At a covered bond forum the bank hosted in Sydney on February 23, it predicted Kangaroo issuance for the current year could reach A$12 billion (US$12.2 billion), up from A$750 million – in a single deal – in 2010.Non-major FIs receive strong support while investors wait for diversification
A number of transactions from financial institutions (FIs) outside the Australian big four have hit the domestic market in the past few weeks, accompanied by reports of price tightening and large levels of oversubscription. Some market participants believe investors are simply chasing yield while waiting for more corporate issuance to emerge, but others believe there is reasonable demand for FI product in its own right.AMP Group Finance Services issues new A$200 million domestic four-year [UPDATED]
AMP Group Finance Services (A/A2), which is guaranteed by AMP Group Holdings, issued a new fixed rate domestic bond. The deal has a March 2015 maturity, achieved its target volume of A$200 million (US$200.5 million) and priced at 155 basis points over semi-quarterly swap.KfW prices increase to new 2016 Kangaroo [UPDATED]
On February 24, KfW Bankengruppe (KfW) (AAA/Aaa/AAA) launched and priced an increase to the January 2016 Kangaroo it introduced in a A$600 million (US$600.8 million) transaction a month earlier. The A$400 million tap is the German's agency's fifth Kangaroo transaction of 2011 and adds to the A$2.1 billion it has already issued this year; KfW sold a total of A$6.3 billion of Kangaroo bonds in 2010, its record issuance year in the market.Kommuninvest returns to Kangaroo market with three-year FRN [UPDATED]
On February 23, Kommuninvest (AAA/Aaa) mandated and priced its second ever Kangaroo, a new A$200 million (US$200.3 million) three-year floating rate line. After completing an Australian roadshow in March last year, Kommuninvest debuted in the Kangaroo market in August, issuing a A$200 million five-year deal.