Smaller is better for First Gulf’s Kanga first

UAE CORRECT SIZE
By Nathan Collins
27 Mar 2014

First Gulf Bank on Tuesday sold its inaugural Kangaroo bond, a five year deal. Despite securing an oversubscribed order book, the issuer chose to keep the size of the trade modest in order to maximise the Australian distribution of the bonds.

ANZ, HSBC and Nomura priced the A$250m ($227.6m) five year bonds at 155bp over mid-swaps, in line with guidance of 155bp area. The final order book was around A$400m, according to a syndicate banker involved with the deal.

“The book could have easily supported a A$300m or larger ...

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