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Kangaroo funding from Australia

Municipality Finance (MuniFin) returned on March 10th to the Australian Kangaroo market by issuing a 10 year AUD 125 million (EUR 80 million) public note.

The last Kangaroo trade was issued in 2007 and it matured in 2011. The joint lead managers for the new transaction are Commonwealth Bank of Australia (CBA), Deutsche Bank and Toronto Dominion Bank. The note pays a fixed coupon of 5 %, which translates to 60 basis points over the Australian 10 year swap rate (BBSW). Approximately 50 % of the transaction was sold to domestic Australian investors and 50 % to the international investors.

“Initially our aim was to issue AUD 100 million note, but we decided to increase the size to AUD 125 million due to the strong investor demand”, says Joakim Holmström, Head of Funding at MuniFin. According to him, the Australian Kangaroo market fits well for MuniFin’s funding strategy as the average maturities on that market are long. At the same time MuniFin was once again able to diversify the funding base.

More information:

Joakim Holmström, Head of Funding, tel. +358 9 6803 5685