SP AusNet prefers the Euromarket
Commonwealth Bank was, however, also active in the domestic market last week. Reuters reported that the bank raised A$250 million for ten years and the bond will pay a coupon of 7.25 per cent. No other details were forthcoming.Otherwise domestic issuance was limited to you-know-which sector. World Bank equalled the record set by European Investment Bank in November for the largest single tranche issue by a Kangaroo issuer.The bank issued a A$1.5 billion, five-year bond priced at 24 basis points over swap and 69 bps over Commonwealth government bonds.On Friday, KfW added A$350 million to its December 2019 line to take outstandings to A$1.0 billion. This is the second addition to the line with KfW having added A$350 million in early January. Both taps were priced at 50 bps over swap.In the structured finance sector, Bank of Queensland is set to become the second issuer for the year with the launch of its prime RMBS issue via Series 2010-1 REDS Trust. BOQ is seeking to raise A$500 million through the sale of A$462.5 million of Class A notes, rated 'AAA'; A$30.0 million of Class AB notes, rated 'AAA'; and A$7.5 million of Class B notes, rated 'AA-'. Pricing of the notes, which have a final maturity date of May 2040, will take place this week.In offshore issuance, Australian borrowers raised almost A$3.0 billion.