Kangaroo sector waking up
Asian Development Bank became the next supranational to re-enter the kangaroo market last week. ADB sold $375 million of bonds, opening a new May 2014 line, rather than topping up an existing line. Again, following the recent pattern for such issues, the bonds priced at swap plus 75 basis points (or Commonwealth government bonds plus 117.25 bps).ADB pipped Council of Europe Development Bank, which after having met with investors only the week before last on a "non-deal" road show, had plans of issuing $200 million of bonds with a four-year maturity, at 80 bps over swap. As it was, the bank saw sufficient demand for a $300 million issue a day later.German development bank KfW ended the week by adding another $250 million to its January 2012 line. This is the line it tapped just over two weeks ago when it re-started agency issuance for the year. This latest tap takes KfW's outstandings to $1.65 billion and was priced at CGS+94 bps compared with a spread of 109 bps previously, although it is understood the spread to swap remained at 75 bps.