Australian dollar

KfW tapped its July 2020 Australian dollar green bond for A$200m ($156.9m) on Wednesday, pricing well inside its existing Kangaroo curve — an illustration of the developing maturity of green markets down under.

Abu Dhabi Commercial Bank issued a A$400m ($315.5m) triple tranche Kangaroo bond last Friday, following a similar deal from Emirates NBD in late September — a promising sign for prospective GCC banks looking to return to the Australian dollar market.

Abu Dhabi Commercial Bank is set to come to market for a potential triple tranche kangaroo bond on Friday, following a deal from Emirates NBD that, according to a banker at one of ADCB’s leads, showed the market was still accessible to Middle Eastern borrowers.

A flurry of large trades from the European Investment Bank (EIB), the International Finance Corporation (IFC) and the World Bank helped push overall Kangaroo volume so far this year higher than those seen for the whole of 2016.

Bank of Montreal (BMO) raised A$800m selling Australian dollar bonds for the first time on Wednesday. The rising flows of Asia Pacific investors is making the Australian dollar market a useful source of diversification for financials and corporates alike.

Bank of Montreal launched an inaugural Australian dollar benchmark on Wednesday. As the fanfare for other Canadian financials has demonstrated, the Asian Pacific buyers are likely to come out in full force.

Deutsche Bahn raised A$600m ($475.4m) with its debut Kangaroo bond on Thursday, making it the first German corporate to issue in the market.

The European Investment Bank tapped its January 2028 Australian dollar Climate Awareness Bond on Wednesday. The bond’s green credentials attracted investors rarely seen that far along the credit curve, a promising sign of the market’s maturity.

The European Investment Bank opened a tap to its January 2028 Australian dollar Climate Awareness Bond on Tuesday.

Deutsche Bahn is soft-sounding investors about a lengthy Kangaroo bond, with an eye on Australian and Asian buyers.

World Bank raised A$850m ($678.7m) in the Kangaroo market this week by printing a new September 2022 line, the largest Australian dollar SSA bond in the last three years.

Lloyds Bank issued its first Australian dollar bond through its senior holding company on Wednesday. As the Kangaroo market shows itself receptive to loss-absorbing products, bankers expect more financial institutions to diversify down under.