New issues for the period 25 April – 1 May 2018 including: ADB, BOQ, EIB, FlexiGroup, KfW, IDB, Liberty, Quebec, Ontario
Asian Development Bank (ADB)
ADB priced an increase to its 2028 kangaroo bond on 24 April 2018.
Volume: A$100m
Total outstanding in the line: A$800m
Coupon type: fixed
Coupon rate: 3.3%
Issue/re-offer price: 99.716%
Issue yield: 3.3325%
Margin to swap: 41bps/s-q
Margin to ACGB: 46.5bps/May 2028
Maturity date: 8 August 2028
Bank of Queensland (BOQ)
BOQ issued a new, A$200m domestic Tier 2 bond on 23 April 2018.
Volume: A$200m
Total outstanding in the line: A$200m
Coupon type: FRN
Coupon rate: 3m BBSW +185bps
Issue/re-offer price: par
Margin to swap: 185bps/3m BBSW
Maturity date: 1 May 2028
European Investment Bank (EIB)
EIB priced an increase to its 2024 kangaroo bond on 27 April 2018.
Volume: A$200m
Total outstanding in the line: A$875m
Coupon type: fixed
Coupon rate: 4.75%
Issue/re-offer price: 110.083% (plus 1.181% accrued)
Issue yield: 2.9775%
Margin to swap: 41bps/s-q
Margin to ACGB: 39.25bps/April 2024
Maturity date: 7 August 2024
FlexiGroup
FlexiGroup began taking indications of interest for its asset backed securities transaction, Flexi ABS Trust 2018-1, on 24 April 2018. The transaction has an indicative total volume of A$300m and is expected to launch in the week commencing 30 April 2018.
Flexi ABS Trust 2018-1 indicative price guidance and structure:
| Tranche | Indicative volume | Expected rating (Moody's/Fitch) | Credit enhancement | Weighted average life | Indicative guidance (bps/1m BBSW) |
| A1 | A$100m | P-1/F1+ | 22.5% | 0.3 years | 65-70 area |
| A2 | A$66.5m | Aaa/AAA | 22.5% | 1.5 years | 115 area |
| A2-G | A$66m | Aaa/AAA | 22.5% | 1.5 years | 115 area |
| B-G | A$15.3m | Aa2/AA | 17.4% | 1.7 years | 180 area |
| C | A$17.7m | A2/A | 11.5% | 1.7 years
| low 200s area |
| D | A$12m | Baa2/BBB | 7.5% | 1.7 years
| 300 area |
| E | A$7.5m | Ba1/BB+ | 5% | 1.7 years
| low 500s area |
| F | A$15m | NR/NR | N/A | ND | ND |
Source: KangaNews
KfW Bankengruppe (KfW)
KfW priced an increase to its 2025 kangaroo bond on 25 April 2018.
Volume: A$100m
Total outstanding in this line: A$1.55bn
Coupon type: fixed
Coupon rate: 4%
Issue/re-offer price: 105.755% (clean)
Issue yield: 3.06%
Margin to ACGB: 36.25bps/April 2025
Maturity date: 27 February 2025
KfW priced an increase to its 2020 kangaroo bond on 27 April 2018.
Volume: A$200m
Total outstanding in the line: A$2.7bn
Coupon type: fixed
Coupon rate: 6%
Issue/re-offer price: 108.01% (plus 1.21% accrued)
Issue yield: 2.395%
Margin to swap: 22bps/s-q
Maturity date: 20 August 2020
Inter-American Development Bank (IDB)
IDB priced an increase to its 2023 kangaroo bond on 26 April 2018.
Volume: A$100m
Total outstanding in this line: A$850m
Coupon type: fixed
Coupon rate: 4%
Issue/re-offer price: 107.196% (inc 1.878% accrued)
Issue yield: 2.8575%
Margin to swap: 32bps/s-q
Margin to ACGB: 35bps/April 2023
Maturity date: 22 May 2023
Liberty Financial (Liberty)
Liberty priced an increase to its 2021 domestic bond on 30 April 2018.
Volume: A$75m
Total outstanding in the line: A$225m
Coupon type: fixed
Coupon rate: 5.1%
Issue/re-offer price: 99.56% (plus 0.348% accrued)
Issue yield: 5.2625%
Margin to swap: 300bps/s-q
Maturity date: 9 April 2021
Province of Quebec (Quebec)
Quebec priced an increase to its 2028 kangaroo bond on 24 April 2018.
Volume: A$50m
Total outstanding in the line: A$115m
Coupon type: fixed
Coupon rate: 3.25%
Issue/re-offer price: 98.493%
Issue yield: 3.4225%
Margin to swap: 50bps/s-q
Margin to ACGB: 56.25bps/November 2028
Maturity date: 18 October 2028
Province of Ontario (Ontario)
Ontario priced an increase to 2028 kangaroo bond on 24 April 2018.
Volume: A$30m
Total outstanding in the line: A$80m
Coupon type: fixed
Coupon rate: 3.2%
Issue/re-offer price: 98.037%
Issue yield: 3.425%
Margin to swap: 51bps/s-q
Margin to ACGB: 57.5bps/November 2028
Maturity date: 12 October 2028
Source: KangaNews