Kangaroos dominated debt capital markets last week
It was another quiet week for debt issuances from Australian companies, but the stream of Kangaroo issues continued, mainly from supranationals.The European Investment Bank looks likely to set a record of its own with Kangaroo issues, making the third issue this month, to take the total raised so far to A$1.7 billion. The bank had about 10 per cent of its total issuance last year via Kangaroo bonds, and this year it has already raised 2.3 per cent of its planned issuance in Australian dollars.The EIB has also been very active in the euro bond market. It was recently over-subscribed by three times for its €5 billion issuance. In the Australian market, the EIB issued $400 million of its August 2020 bond last week, to take the total outstanding on that bond to $2.6 billion. The pricing was done at a spread of 104 basis points over the April 2020 Australian government bond.Among other multilateral development banks, the Council of Europe Development Bank issued $250 million of December 2015 notes, adding to its previous issue at a spread of 83.5 basis points over its April 2015 Australian government bond.In the lone corporate issue, Coca Cola Amatil made a $75 million addition to its May 2014 bond, at a spread of 60 basis points over mid-swap. The bond was first issued earlier this month for $175 million at a coupon of 6.125 per cent and at the same spread of 60 basis points.In New Zealand, Rentenbank has launched a NZ$50 million increase to its September 2014 Kauri, and the price guidance is reported to be set at 54 basis points over semi-quarterly swap.And Westpac New Zealand is getting closer to its maiden covered bond issuance, after the bank completed road shows in Asia and Europe last week. Westpac is targeting an issue size of up to €1 billion but hasn't indicated the term yet.