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Instituto de Crédito Official (AAA/Aaa/AAA) (ICO)’s November 19 increase of A$200 million (US$179 million) to its 2011 Kangaroo demonstrated how far spreads have continued to widen over recent weeks.

GE (AAA/Aaa) will be roadshowing in Australia and New Zealand at the beginning of December via nabCapital and Bank of New Zealand. The Stamford, Connecticut-based issuer has visited Australia annually for the last five years, but this is the first time New Zealand investors have been added to the schedule.

After a month-long issuance hiatus, the triple-A Kauri market has reopened with Export Development Canada (AAA/Aaa) (EDC) pricing a NZ$375 million (US$285 million) three-year bond on November 21.

In highly volatile market conditions, KfW Bankengruppe (AAA/Aaa/AAA) (KfW) increased its 2012 Kangaroo bond by A$200 million (US$185 million) on November 8. Although demand was largely international, unusually high yield pickup between government bonds and triple-A securities is leading to optimism that the domestic investor base may soon return.

Citigroup has become the latest US bank to have its credit rating downgraded following the firm’s announcement that it will lose US$8 billion–11 billion in the fourth quarter as a result of its US$55 billion sub-prime exposure.

The three Australian banks to have issued annual results in the past week all avoided most of the negative consequences of the sub-prime fallout and subsequent credit crunch.

Two more triple-A rated issuers, both based in the US, are to visit investors in New Zealand by mid-November following the increase in activity in the supranational, semi-government and agency Kauri market.

Australian banks appear to be bucking the trend for reduced headcounts in credit operations among international institutions, citing a strong domestic market as the reason behind key hires in Europe and the US.

KfW Bankengruppe (AAA/Aaa/AAA) (KfW) and Eurofima (AAA/Aaa) have both priced taps, on October 18 and October 19 respectively, on the back of continued demand for triple-A Kangaroo paper from offshore.

The A$300 million (US$268 million) increase to Council of Europe Development Bank (AAA/Aaa/AAA) (CEB)’s 2012 Kangaroo was driven by demand from domestic investors, according to lead manager TD Securities (TD).

Rentenbank (AAA/Aaa/AAA) launched its inaugural Kauri deal on October 16 after roadshowing in both New Zealand – for the first time ever – and Australia at the end of September.

Spain's Instituto de Crédito Oficial (AAA/Aaa/AAA) (ICO)'s A$200 million tap to its March 2011 bonds is only the second Kangaroo deal priced in the period from September 17 to mid-October.