Kangaroo bonds attracting Gulf lenders

May 24, 2014 12:31 pm

Banks from the Middle East and Latin America are attracted by Australia’s A$1.5trn bond market, as they seek to diversify their portfolio and lower funding costs in the world’s fourth-largest pension savings pool, Reuters has reported. National Bank of Abu Dhabi, First Gulf Bank , Emirates NBD, Abu Dhabi Commercial Bank and Banco Santander Chile raised this year A$1.3bn ($1.2bn) through five kangaroo bonds – Australian dollar-denominated debt from foreign issuers and there is more to come. Debt issues from the Gulf and South America are very rare in Australia with the vast majority of the A$167bn kangaroo bonds coming from Western Europe and North America.