BoS Australia's new two-year domestic nets A$600 million [UPDATED]
The run of Australian market issuance from international financial institutions (FIs) continued on September 2 as Bank of Scotland Australia Branch (BoS Australia) (A+/Aa3/AA-) launched and priced a new two year transaction. After pricing on the A$600 million deal, international FIs have sold over A$8 billion (US$7.3 billion) in Australia since early August, over A$6 billion of that via local subsidiaries.EIB returns to Kangaroo market with A$600 million 2020 increase [UPDATED]
European Investment Bank (EIB) (AAA/Aaa/AAA) launched and priced its first Kangaroo in nearly a month on September 1, adding A$600 million (US$538.9 million) to the August 2020 line it introduced in a A$1 billion (US$892.8 million) transaction in late July this year. EIB's last Kangaroo deal was a A$500 million 2015 tap that priced on August 5.APRA's APS 120 clarification knocks capital status of ABS
Market sources say a recent clarification of rules covering the capital treatment of securitised assets by the Australian Prudential Regulation Authority (APRA) could further challenge their issuance by banks. While the clarification does not directly affect the use of asset-backed securities (ABS) for funding, achieving capital relief via securitisation is unlikely unless issuing banks can sell a greater proportion of subordinated tranches than is typically the case.
BoA returns to Kangaroo market with A$1.2 billion three-year
In the wake of a flurry of domestic deals from offshore banks, the financial institution (FI) Kangaroo market reignited on August 31 with Bank of America Corporation (BoA) (A/A2/A+) pricing A$1.2 billion (US$1.07 billion) in a new three-year deal. The transaction is just the third Kangaroo from a bank issuer this year and the first of its kind since a quickfire brace of issues priced in early March.
Clear strategy needed if opposition's long bond pledge comes to fruition
One of the more interesting concepts for capital markets spun off the as-yet unresolved Australian federal election campaign was an opposition promise to direct the Australian Office of Financial Management (AOFM) to explore the issuance of 30-year government bonds. While participants say extending the government bond curve could have significant benefits for the Australian market, they also say the mechanics of doing so might prove complicated.