A return of financial Kangaroos
The remainder of the issuance last week came from Kangaroo issuers, with the supranationals continuing to issue in volume: but the stand-out issuers were JP Morgan Chase and HSBC Bank Plc - the first Kangaroo issuers from outside of the supranational and agency sector, this year.JP Morgan Chase (rated A+) sold A$700 million of fixed and A$300 million of floating rate for five years, priced at 130 basis points over swap/bank bills. HSBC saw out the week raising A$1.5 billion for five years priced at 125 bps over swap/bank bills. The issue was sold in two tranches - A$1.0 billion fixed and A$500 million floating. This was the first time HSBC has issued in the domestic market, although its Australian subsidiary has been a frequent issuer. Inter-American Development Bank added A$375 million to its August 2019 line, taking outstandings to A$1.1 billion. The top-up was priced at 33 bps over swap and 80.5 bps over CGS. This is the second addition to the line opened in August 2009.International Finance Corp proved yet again that there really is no such thing as a non-deal roadshow and sold A$1.1 billion of March 2015 bonds at a spread of 24 bps over swap and 66 bps over CGS. IFC met with investors just two weeks before launching only its third line of bonds in this market.