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Following a 10-day lull in Kangaroo issuance around the Easter holiday, exacerbated by a highly volatile AUD basis swap market, Instituto de Crédito Official (AAA/Aaa/AAA) (ICO) reignited the primary market with a March 28 tap of its 2011 line.

A further sign of interest in longer-dated Kangaroos came on March 18 as EUROFIMA (AAA/Aaa) priced a A$250 million (US$230.5 million) increase to its 2018 bond. The deal follows European Investment Bank's recent increase to its 2017 Kangaroo line.

The bailout of Bear Stearns (BBB/Baa1/A-) by J.P. Morgan Chase (AA-/Aa2/AA-) (J.P. Morgan) will have a direct impact on over A$3 billion (US$2.76 billion) of Kangaroo bonds from the two issuers, although Bear Stearns' paper may emerge from the trauma with an upgraded rating.

Nordic Investment Bank (AAA/Aaa) (NIB) returned to the Kauri market on March 14 with a new deal, a NZ$100 million (US$81.51 million) 2015. The transaction priced at 120.5 basis points over the benchmark 6 per cent 2015 sovereign bond, equating to 22 basis points below swap according to lead manager ANZ.

European Investment Bank (AAA/Aaa/AAA) (EIB) has reinforced its position as the leading Kangaroo issuer of 2008 to date with a further increase of A$400 million (US$374.2 million) to its 2017 line – the second time it has tapped the A$1.6 billion bond this year.

Asian Development Bank (AAA/Aaa/AAA) (ADB) priced its third Kangaroo transaction of the year on March 12, a A$300 million (US$279.4 million) five-year bond which is also its first new Kangaroo line since November 2006.

Canada’s Province of Manitoba (AA/Aa1) (Manitoba) roadshowed in Australia on March 10-12 and, while representatives emphasised that no deal is imminent, says that it wants to become a regular issuer in the Kangaroo market.

Rentenbank (AAA/Aaa/AAA) has continued its recently announced strategy of only bringing larger-sized increases to the Kangaroo market in 2008 with the March 11 increase of A$250 million (US$232.1 million) to its 2011 bond.

Following the March 6 A$200 million (US$185.8 million) increase to its 2011 Kangaroo bond Nordic Investment Bank (AAA/Aaa) (NIB) says it is observing the proportion of its deals which is bought by offshore investors and has a clear idea of the maximum level it is happy to see.

Triple-A borrowers speaking at the KangaNews/Westpac Speed-Meeting Summit in Sydney have said it has been possible to exploit a flight to quality by issuing Kangaroos but confirmed their belief that the market will remain challenging for some time.

The conveyor belt of triple-A Kangaroo deals continued on February 27 as Asian Development Bank (AAA/Aaa/AAA) priced a A$150 million (US$140.2 million) increase to its 2011 line, which now totals A$1.15 billion.

CADES (AAA/Aaa/AAA) has priced its third Kangaroo bond, a A$300 million (US$276.8 million) 2013 transaction, after ANZ Banking Group (ANZ) left the deal’s syndicate between launch and pricing.