What is ‘Kangaroo Bond’
Unlisted foreign bonds are bonds that are issued on the Australian market by non-Australian companies and are denominated in the local currency of Australia. The bond is subject to all applicable laws and regulations in Australia.
A “matilda bond” is another term for this kind of relationship.
Explaining ‘Kangaroo Bond’
Foreign bonds, such as kangaroo bonds, are primarily utilized to offer issuers with access to a capital market outside of their own country in order to obtain funds for their businesses. Furthermore, significant enterprises and/or financial organizations seeking to diversify their holdings and increase their total currency exposures might obtain cash in Australian dollars via the issuance of kangaroo bonds. The United States, Germany, and other countries have traditionally been the primary issuers of kangaroo bonds. Samurai bonds and bulldog bonds are examples of other international bonds.
Further Reading
- Kangaroo bond issuance in Australia – opus.lib.uts.edu.au [PDF]
- The role of foreign bond issuance: The case of Australia – onlinelibrary.wiley.com [PDF]
- Kangaroo bond issuance in Australia – search.informit.com.au [PDF]
- Financial market innovation in Australia: implications for the conduct of monetary policy – papers.ssrn.com [PDF]
- A History of Australian Corporate Bonds – onlinelibrary.wiley.com [PDF]
- Foreign bond markets and financial market development: International perspectives – www.elgaronline.com [PDF]
- Kangaroo market looks to another record year – heinonline.org [PDF]
- Interest-Free Treasury Bonds (IFTB): Islamic Finance and Legal Clarifications – www.cribfb.com [PDF]
- Regulation of Bond/Debenture Market in Australia – papers.ssrn.com [PDF]
