Gulf and Latam banks tap Australian debt opportunities

jueves 22 de mayo de 2014 00:25 GYT

* Middle East & Latam banks sell A$1.3 bln in kangaroo bonds this year

* Banco de Chile could be next in line to tap Australian market

* Explosion of non-G4 bond issuance since crisis

* Local funds & Asian private wealth drive demand

By Cecile Lefort

SYDNEY, May 22 (Reuters) - Australia's A$1.5 trillion bond market is attracting interest from borrowers in Latin America and the Middle East, as they seek to diversify their portfolio and lower funding costs in the world's fourth-largest pension savings pool.

National Bank of Abu Dhabi, First Gulf Bank , Emirates NBD, Abu Dhabi Commercial Bank and Banco Santander Chile raised this year A$1.3 billion ($1.20 billion) through five kangaroo bonds - Australian dollar-denominated debt from foreign issuers and there is more to come.

Banco de Chile could be next, having met Australian investors last week, according to two portfolio managers who declined to be named.

A big help to kangaroo issuance is a favourable move in the Australian-U.S. dollar cross-currency basis swap rate, an instrument that borrowers use to swap into foreign currencies.   Continuación...