Banks back to work in domestic market

Despite ructions, bond issuance activity still continued apace in the domestic market. Kangaroo issuers continued to add to existing lines; the Australian branch of Rabobank became the first non-kangaroo issuer for the year and was followed by Bank of Queensland; AMP Bank opened the RMBS market; and government and semi-government issuance got under way.

Kommunalbanken added A$275 million, priced at 55 basis points over swap, to its October 2014 line to take outstandings to A$625 million.

European Investment Bank added A$650 million, priced at 15 bps over swap, to its August 2013 line to take outstandings to A$3.15 billion.

And KfW added A$450 million, priced at swap plus 12 bps, to its January 2012 line to take outstandings to A$2.1 billion.

Rabobank raised three-year funds: A$350 million of fixed-rate bonds at 75 bps over swap; and A$550 million of floating-rate notes at 75 bps over bank bills. The next day it added another A$150 million to the FRNs.

Late on Friday, Bank of Queensland added A$125 million to both of its October 2012, government-guaranteed fixed- and floating-rate lines, to take outstandings to A$475 million and A$525 million, respectively. The top-ups were priced at 30 bps over swap and bank bills.

At the same time, Inter-American Development Bank priced a new May 2013 line. IADB issued A$500 million of bonds, priced at 15 bps over swap and 60 bps over CGS.