News
KfW Bankengruppe (KfW) (AAA/Aaa/AAA) launched its 12th Kangaroo transaction of 2011 on June 7, pricing a A$450 million (US$480.3 million) increase to the February 2018 line it introduced earlier this year. The agency has now sold A$5 billion of Kangaroos in 2011, trailing only the A$6.3 billion it placed in 16 deals in 2010 as its record Kangaroo year.
Commonwealth Bank of Australia (CommBank) (AA/Aa2/AA) completed its first Samurai transaction in three years on June 3 in what was also the largest Australian bank Samurai to come to market this year. The bank says it will continue to monitor opportunities in Japan following its ¥101 billion (US$1.3 billion) dual-tranche five-year deal, while market participants say the other major Australian banks may potentially strike while conditions remain favourable.
The New Zealand Debt Management Office (NZDMO) (AAA/Aaa/AAA) confirmed the initial volume of the new June 2023 benchmark government bond it will introduce via tender on June 10, with NZ$100 million (US$82.3 million) of the new bond to be placed. The new line, the introduction of which comes on the back of what the agency calls strong recent demand for longer-dated New Zealand government securities, will extend the issuer's benchmark curve by two years.
The second covered bond from a New Zealand bank has been announced, with ANZ National Bank (ANZ National) (Aa3/AA-) launching its inaugural issue in the format. The deal will be issued as part of ANZ National's €5 billion (US$7.3 billion) covered bond programme. Moody's Investors Service and Fitch Ratings have assigned the forthcoming issue preliminary long-term triple-A ratings.
Citigroup (Citi) (A/A3/A+) has completed its buyback of both the fixed and floating rate note (FRN) tranches of its government-guaranteed August 2012 maturity. It bought back A$262.4 million (US$277.4 million) of the A$450 million fixed rate piece at a price of 100.582 per cent plus 1.584 accrued, and A$798.7 million of the A$800 million FRN at a price of 100.535 per cent plus 0.491 accrued.
On June 8 Bank of New Zealand (BNZ) (AA/Aa2) issued its inaugural Kangaroo covered bond issue via the London branch of its subsidiary BNZ International Funding. The fixed rate, five-year transaction reached a final volume of A$700 million (US$746.9 million) in what is also the first deal in Australia from BNZ in any format.
New South Wales Treasury Corporation (TCorp) has revealed a projected funding requirement of A$11.5 billion (US$12.4 billion) for the 2011/12 financial year, with a slight increase in the headline total being caused by a marginal increase in maturing bond volume and a lower level of pre-funding than last year. The state treasury corporation also disclosed plans to add a new, long-dated benchmark in the next 12 months.
On June 10, Investec Bank Australia (Investec Australia) (Baa2/BBB) finalised the buyback of the fixed rate tranche of its February 2012 government-guaranteed line, repurchasing A$128.4 million (US$136.6 million) of the A$200 million volume. The buyback priced at a margin flat to semi-quarterly swap or a premium of around 16 basis points to the closest maturity Australian government bond.
ING Bank Australia (ING) completed a A$800 million (US$847.8 million) residential mortgage-backed securities (RMBS) deal on June 10. The deal was upsized from a launch volume of A$750 million, and marks ING's second foray into the domestic securitisation market.
Year to date, June will be the biggest month in terms of upcoming maturities. While most investors are not concerned regarding the outflow of bonds from their portfolios, they still express a general dissatisfaction with what is currently being offered in the domestic market.
Treasury Corporation of Victoria (TCV) (AAA/Aaa) launched and priced a new November 2026 domestic transaction inside a day on June 1. The issue has a A$220 million (US$236.3 million) volume - slightly higher than the launch size of A$200 million. The deal - which was solely led by UBS Investment Bank - will extend the state funding agency's domestic curve: its longest-dated line on issue is a December 2024 maturity issued in October 2010.
KfW Bankengruppe (KfW) (AAA/Aaa/AAA) launched and priced a A$250 million (US$268.6 million) increase of its June 2014 Kangaroo maturity on June 1. The tap takes the amount outstanding in the line to A$1.25 billion, having been inaugurated in May 2009 and tapped two months later. The top-up is KfW's third Kangaroo deal inside a month, with its most recent issue – a tap to its January 2016 maturity – pricing on May 19.