SYDNEY, May 27 (IFR) - Price guidance for Corporación Andina de Fomento’s offering of 10-year Kangaroo bonds is for a yield of asset swaps plus 140bp area, according to Australian investors.
Deutsche Bank and Westpac are joint lead managers for Latin American development bank’s third Kangaroo bond, having also arranged its previous issues in Australia. Pricing is expected this afternoon.
CAF, rated Aa3/AA-/AA-, issued a debut A$275m (US$213m) 4.25% three-year bond on August 21 2013, priced to yield 175bp over Australian Commonwealth Government bonds. Six days later, a reverse enquiry-driven addition of A$75m lifted the issue size to A$350m.
On October 30 2013, CAF sold a A$225m 6.25% 10-year at a yield of 244bp over ACGBs. (Reporting By John Weavers, editing by Dharsan Singh and Daniel Stanton)