KfW jumpstarts Kangaroo market with A$250 million tap

Issuers have flooded the Aussie dollar bond market, with German bank KfW offering investors an additional A$250 million (US$235 million) subscription of its existing 3.75% Kangaroo.

KfW jumpstarts Kangaroo market with A$250 million tap
The deal was launched under KfW’s domestic Aussie dollar Medium Term Note Programme.

KfW, the German government-owned development bank, on Tuesday raised a tap issue of A$250 million from its existing A$1 billion five-year Kangaroo bond, taking the total up to A$1.25 billion, according to sources.

The tap issue a procedure that allows borrowers to sell bonds from past issues was fully subscribed, signalling increasing investor appeal for supranational, sovereign and agency SSA issuer paper in the market. The original bond had a coupon of 3.75%.


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