Municipality Finance Plc (MuniFin) increased the existing Kangaroo 2024 bond on April 17th by 75 million AUD. After this transaction the size of the bond is AUD 500 million. The original transaction was issued in March, 2014 with final maturity of 10 years and there has been three tap transactions before the most recent one.
Dealer banks for the increase were Nomura and RBC Capital Markets. The increase was priced 39 basis points over the Australian swap rate, which is in line with MuniFin’s peers.
Australian Kangaroo market is an important funding source for MuniFin due to long-term maturities. Investor base for the increase was well diversified around the world: 50 percent went to Australian investors, 27 percent to Japan, 15 percent to Europe and the remaining 8 percent to South America.