The transaction has become the largest inaugural Senior-Preferred "kangaroo" bond issue denominated in Australian dollars for a debut issuer in the Australian market
CaixaBank has completed its inaugural debt issuance in the Australian market under its “A$ Note Issuance Programme,” registered in February of this year, with the issuance of two Senior-Preferred bonds. The transaction was structured in two tranches, both with a 5-year maturity and bullet format, without an early redemption option.
The first tranche, at a fixed rate, reached an amount of 400 million Australian dollars (A$), with a final price of 107 basis points over the Australian benchmark (SQ ASW), after starting from an initial indicative price of 115 basis points. The coupon for this tranche was set at 5.801%.
The second tranche, at a floating rate, was also issued with a 5-year maturity for an amount of 600 million A$, with a final price of 107 basis points over the 3mBBSW, from the same initial level of 115 basis points. Combined demand, with the strongest interest in the floating-rate tranche, exceeded A$3 billion and peaked at over 80 investors, allowing the spread to compress to a final level of 107 basis points.
This transaction represents the largest inaugural Senior-Preferred “kangaroo” bond issue denominated in Australian dollars for a debut issuer in the Australian market, as well as the largest order book ever recorded for an inaugural issue of this type.
This transaction reinforces CaixaBank's strategy of diversifying its investor base beyond the euro market, facilitating access to a growing source of liquidity in Australia and Asia. Likewise, with this issue, the bank consolidates its presence in international funding markets, adding the Australian dollar as the fifth market in which it has successfully executed public issuances, alongside its established markets in euros, US dollars, British pounds, and Swiss francs.
Read the news on the CaixaBank website
