SSA - Article Archive

  • Madrid ratchets in spread

    Two SSA borrowers hit screens on Wednesday with green euro benchmarks, following a successful outing by Madrid, which saw the bond’s sustainability feature driving the spread to the tightest achieved at reoffer by a Spanish region.

    • 20 Feb 2020
  • Euros going strong, but hints of price push-back emerge

    The euro market, unlike the quiet dollar market, is going from strength to strength for SSA borrowers. However, the tight spreads are starting to make their presence felt, with investors starting to push back.

    • 20 Feb 2020
  • Sonia gets makeover as EBRD shifts new structure

    The European Bank for Reconstruction and Development this week became the first borrower to deviate from the standardised coupon calculation method for Sonia-linked floating rates. While investors backed the new structure, with the deal receiving a huge order book from a large number of accounts, there are some market participants who believe the disruption was unnecessary, writes Burhan Khadbai.

    • 20 Feb 2020
  • EBRD: futureproofing Sonia

    The European Bank for Reconstruction and Development made a bold move this week by rewriting the rulebook for how coupons of Sonia-linked floating rate notes should be structured. It annoyed some, but it’s hard to argue against the logic.

    • 20 Feb 2020
  • Council of Europe grabs $1bn at five years

    One of February’s few dollar issuers hit screens on Thursday, raising $1bn of five year cash at an impressive spread.

    • 20 Feb 2020
  • Aussie state duo debut in euros

    A pair of Australian sub-sovereigns have made their debuts in the euro market in recent days. An attractive basis swap helped to encourage issuers to sell into unusually strong demand for long dated euro paper.

    • 20 Feb 2020
  • Ontario TFT mandates for euro investor meetings

    Ontario Teachers’ Finance Trust has chosen four banks to organise a series of meetings with euro fixed income investors, ahead of what will be the issuer’s first bond in the currency.

    • 20 Feb 2020
  • ESM to go for short to medium part of curve

    The European Stability Mechanism sent out a request for proposals on Wednesday informing banks that it is targeting a bond in the short to medium of the euro curve, according to sources who have seen the RFP.

    • 20 Feb 2020
  • CEB out in dollars following FMS-W

    The Council of Europe Development Bank has picked the banks to lead its first dollar benchmark of the year, in what will only be the second public deal in the currency this week.

    • 19 Feb 2020
  • SNCF and Kommuninvest go head to head in green

    A pair of SSA borrowers hit screens on Wednesday for green euro benchmarks. However, one has decided that its marketing process will be entirely conducted over the phone.

    • 19 Feb 2020
  • EBRD attracts big demand for Sonia ‘shift’ but no unanimous approval

    The European Bank for Reconstruction and Development took a huge order book for its Sonia-linked floating rate note on Wednesday, which introduced a new coupon calculation methodology for the sterling risk free rate. But market participants away from the deal said the demand did not reflect broad approval of the new format among investors.

    • 19 Feb 2020
  • Madrid gets biggest book and tightest spread with sustainable bond

    Madrid hit the market with a 10 year sustainable bond on Tuesday, raising €1.25bn at its tightest ever spread to the Spanish sovereign, selling into its largest ever book.

    • 18 Feb 2020
  • Belgium gets €5bn with 3bp NIP

    Belgium was able to print a large 20 year benchmark bond on Tuesday, pulling in a book of €27bn. But despite the size of the demand, investors were reluctant to follow the price more than 1bp from initial guidance.

    • 18 Feb 2020
  • Local bonds for local people

    By opening up its debut social bond to retail investors, Munich highlighted an often overlooked strength of the socially responsible investment (SRI) market. Distributed correctly, these funding tools demonstrate the true impact of ethical investing.

    • 18 Feb 2020
  • EBRD to bring new coupon structure for Sonia FRNs but questions linger on rationale

    The European Bank for Reconstruction and Development will be introducing a new coupon calculation methodology for Sonia-linked floating rate notes with its deal on Wednesday. The trade will use the structure that it pioneered for its Sofr debut last summer. The leads say this new format will be helpful should Sonia move towards a single index, like Sofr will in March. But some bankers away from the deal are unconvinced that the new method will appeal to investors.

    • 18 Feb 2020
  • SSA secondary pricing update: SGP 50 year green tightens 4bp

    Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark and bid-yields from the close of business on Monday, February 17. The source for secondary trading levels is ICE Data Services.

    • 18 Feb 2020
  • Belgium and Madrid get ready for 10 and 20 year deals

    Two public sector borrowers hit screens with new issues on Monday, with Belgium choosing a 20 year and Madrid opting for a 10 year sustainable bond.

    • 17 Feb 2020
  • Italy ‘analysing’ Enel’s sustainability-linked format

    Italy is considering the sustainability-linked bond format pioneered by Italian electricity and gas company Enel, but Davide Iacovoni, head of Italy’s debt management office, thinks the structure may not suit the sovereign’s priorities of ensuring liquidity and maximising reach.

    • 17 Feb 2020
  • UK MBA finalises syndicate for debut bond

    The UK Municipal Bonds Agency has chosen a syndicate of three banks to arrange a series of investors meetings starting on Tuesday for its first bond, a five year Sonia-linked floater for Lancashire County Council.

    • 17 Feb 2020
  • Rose to prune NatWest Markets, take secateurs to rates

    Royal Bank of Scotland — or NatWest Group, as it plans to rebrand itself later this year — is set to cut back risk-weighted assets in the investment bank, particularly in rates. The bank also committed to stricter lending and underwriting criteria for fossil fuel companies.

    • 14 Feb 2020
  • EU to discuss candidate for EBRD head

    EU member states plan to agree on a common candidate to succeed the UK’s Suma Chakrabarti as president of the European Bank for Reconstruction and Development after his term ends in May. France, Italy and Poland have each put a name forward.

    • 13 Feb 2020
  • Hot demand for short and long in euros

    Borrowers hit screens in euros from three to 50 years this week, all enjoying heavily subscribed books and pricing with skinny new issue premiums thanks to investors’ confidence in consistent support from the European Central Bank.

    • 13 Feb 2020
  • Ontario prints its first DMTN green bond

    Ontario printed a first green bond off its domestic medium term note programme this week, and the deal was over six times covered. Demand for green provincial paper is high, with Ontario coming a week after neighbouring Quebec.

    • 13 Feb 2020
  • BMW rolls into empty MTN market for €500m

    BMW issued the largest unsecured MTN of the year on Wednesday — outstripped in size only by a €700m privately placed covered bond from UniCredit, according to Dealogic. The trade was BMW’s largest since 2016.

    • 13 Feb 2020
  • Norway ticks all the boxes with bumper book

    It was third time lucky for Norway this week as it rocketed to a Nkr65bn ($7.0bn) order book with its third syndication. There was a marked increase in real money participation, meeting one of the Norges Bank’s main aims for its syndication programme.

    • 13 Feb 2020
  • SGP locks in ‘strategic’ 50 year green as SSAs pile into SRI

    Société du Grand Paris hoovered up strong demand this week to sell the longest ever public syndicated green bond. The French agency was joined by three other public sector borrowers in raising socially responsible bonds this week, including the first European city to issue a social-labelled bond.

    • 13 Feb 2020
  • EDC readies dollar deal ahead of busy pipeline

    Export Development Canada has mandated banks for its first dollar benchmark of the year in what has been a quiet week in the currency for public sector borrowers. SSA bankers expect activity in dollars to pick-up next week, despite a US public holiday on Monday.

    • 13 Feb 2020
  • World Bank shows off sterling credentials with super 10 year

    World Bank cemented its status as one of the leading sterling issuers in the public sector bond market with a record-breaking 10 year deal on Thursday.

    • 13 Feb 2020
  • UK fiscal splurge cemented as ‘last Mohican’ is ousted

    The ousting of Sajid Javid as the UK's chancellor of the exchequer has been interpreted in financial markets as a power grab by prime minister Boris Johnson. Javid's removal is likely to strengthen the government’s bias towards populist economics, “rewriting the Treasury’s fiscal rules”, according to one investor.

    • 13 Feb 2020
  • MuniFin coming for debut social bond in 2020

    Municipality Finance will look to issue a debut social bond in the second half of this year, having just become the first borrower in Finland to publish a framework for the format.

    • 13 Feb 2020
  • World Bank to bring super-rare sterling 10 year

    World Bank mandated banks for a 10 year sterling deal on Wednesday — an extremely rare trade from a non-UK public sector borrower, but in line with the trend of issuers going out longer in the sterling curve.

    • 12 Feb 2020
  • AFD aiming for social bonds

    Agence Française de Développement is looking to expand its thematic bond framework to include the issuance of social-labelled debt.

    • 12 Feb 2020
  • Monetary policy outweighs virus fears

    Investors in the SSA market are piling into long dated bonds, leaving aside any coronavirus-driven fears and swelling the order books on 30 year and 50 year paper to record breaking levels, in what bankers are calling a 'one way market'.

    • 12 Feb 2020
  • €14bn floods EIB’s order book

    The European Investment Bank raised €3bn on Tuesday with a five year deal, receiving €14bn of orders for a deal capped at €3bn.

    • 11 Feb 2020
  • IFC hits market alongside UK in sterling

    Two sterling public sector bond issues were announced on Tuesday, but aside from timing, the trades had little in common. The UK Debt Management Office printed £2.5bn at 50 years, while the International Finance Corp raised £350m with a seven year.

    • 11 Feb 2020
  • BMO hires Muscatt for SSA and covered trading

    Luis Muscatt, formerly of NatWest Markets, has joined BMO Capital Markets as a covered bond and SSA trader.

    • 11 Feb 2020
  • Norway out with IPTs for its yearly syndication

    The Kingdom of Norway hit screens on Tuesday with initial pricing thoughts on its yearly syndicated benchmark.

    • 11 Feb 2020
  • Italy smashes newly minted order book record with 15 year

    Italy printed €9bn with a 15 year benchmark on Tuesday, wowing onlookers with a new Italian order book record and a 4bp move from initial price thoughts.

    • 11 Feb 2020
  • SGP takes size with 50 year green as Munich brings city first

    Société du Grand Paris impressed the SSA market on Tuesday with a series of superlatives. It sold its biggest ever bond with the longest ever maturity for a syndicated green bond in any asset class. The City of Munich hit another landmark with the first social bond from a European city.

    • 11 Feb 2020
  • Big demand for new World Bank Kauri

    The World Bank on Tuesday brought a new five year Kauri bond — the largest since August — at a “pretty aggressive” level to its Australian dollar curve.

    • 11 Feb 2020
  • SSA secondary pricing update: JFM green debut tightens 5bp

    Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark and bid-yields from the close of business on Monday, February 10. The source for secondary trading levels is ICE Data Services.

    • 11 Feb 2020
  • World Bank comes to market with new five year Kauri

    The World Bank is looking to New Zealand for a new five year. The deal will be its first bond in the Kauri market since January 2019.

    • 10 Feb 2020
  • Italy to get in ahead of Spain as peripherals go long

    Italy is on screens with a 15 year benchmark, opting for the long end of the curve in spite of the concern some bankers have expressed about the difficulty of selling long dated debt.

    • 10 Feb 2020
  • SSA cluster finds fertile ground at short end

    Two European borrowers hit screens on Monday morning at the short end of the euro curve, with a third set to follow suit on Tuesday as issuers. Both of Monday’s deals received extraordinarily strong demand.

    • 10 Feb 2020
  • IFC preps seven year sterling bond

    The International Finance Corp is set to become the latest public sector borrower to head to the seven year part of the sterling bond curve, in an attempt to achieve a more attractive funding cost when swapping out of the currency.

    • 10 Feb 2020
  • SGP and Munich to set new landmarks in SRI bond market

    Société du Grand Paris and the City of Munich will break new ground in the socially responsible bond market this week as the pipeline for green and social debt from public sector borrowers builds.

    • 10 Feb 2020
  • Norway readies Nokkie syndication

    The Kingdom of Norway is eyeing the international investor base as it prepares to launch its yearly Norwegian krone bond syndication — a new 10 year benchmark, set to mature in August 2030.

    • 10 Feb 2020
  • SSAs make most of good mood and booming dollar market

    Five SSA issuers brought dollar deals to market this week, hitting screens in a variety of formats and tenors. With investors undeterred by volatile government bond yields, issuers made the most of excellent conditions to pull off impressive deals.

    • 06 Feb 2020
  • Spain to test ultra-long demand as market wobbles

    Cracks started to appear in demand for long-dated rates products this week, even as riskier credit markets went gung-ho in the face of the coronavirus outbreak. Now Spain could be set to test how bad the damage has been, as it is rumoured to be readying a 30 year syndication for next week. Burhan Kahdbai, Lewis McLellan and Bill Thornhill report.

    • 06 Feb 2020
  • Bumper demand for Quebec green deal

    Demand for Quebec’s latest green bond was high with investors pouring into the C$500m ($376.2m) no-grow deal, leading to the books closing after only 20 minutes.

    • 06 Feb 2020
  • US Treasury to send RFI for Sofr FRN, unveils plans for 20 year bond

    The US Treasury is to send out a request for information (RFI) to market participants to sound out interest for a floating rate note linked to the Secured Overnight Financing Rate (Sofr), the Federal Reserve’s recommended replacement for Libor. The US has also disclosed further details of its plans to bring back a 20 year line.

    • 06 Feb 2020
  • Spain's funding chief promoted: deputy takes reins

    GlobalCapital understands that Spain has appointed a new head of funding and debt management to take over from Pablo de Ramón-Laca, who has been promoted.

    • 06 Feb 2020
  • Slew of dollar paper hits SSA market

    Three SSA issuers brought dollar deals to market on Wednesday, hitting screens in a variety of formats and tenors, making the most of excellent conditions to pull off impressive deals. A fourth is lined up for Thursday.

    • 05 Feb 2020
  • KfW achieves a ‘blowout’ in sweet spot as ESM posts RFP

    KfW gathered strong demand for its bond issue on Wednesday — the third seven year euro deal from an SSA issuer this week — as investors saw relative value in it. The European Stability Mechanism is looking to follow with a similar tenor after sending banks a request for proposals for its first benchmark of the year.

    • 05 Feb 2020
  • AFD readies green bond return

    Agence Française de Développement is preparing to issue its first green bond since September 2018.

    • 05 Feb 2020
  • SSAs get to work as virus fears recede

    Government bond yields are climbing from the lows they touched last week, thanks to an orderly reopening of the Chinese equity market. SSA borrowers are hard at work with deals and investors, though concerned, are still participating in them.

    • 05 Feb 2020
  • Generali, BNY Mellon launch ESG bond funds

    Generali Investments and BNY Mellon have both set up new funds to invest in green and sustainable bonds, in euros and sterling respectively.

    • 05 Feb 2020
  • Quebec readies Canadian dollar green bond

    The Province of Quebec has hired banks to lead a new Canadian dollar green bond — its first since the start of last year.

    • 04 Feb 2020
  • Finland smashes book record with positive-yielding 16 year

    Finland received record demand for its first syndication of the year on Tuesday. The sovereign was joined in the long end of the curve by the State of North Rhine Westphalia as it tapped its February 2038s.

    • 04 Feb 2020
  • EIB and Quebec open the floodgates for dollar SSA market

    The European Investment Bank and the Province of Quebec were well subscribed as they re-opened the dollar SSA market following the extended Lunar New Year holiday. Two more public sector borrowers will follow with dollar bonds on Wednesday, ahead of what is expected to be a busy month in the currency.

    • 04 Feb 2020
  • Agencies score with ESG paper

    The Japan Finance Organisation for Municipalities printed the first deal from its budding green bond programme on Tuesday, impressing onlookers with a large book and aggressive price move. The trade shared the market with a social housing bond from Cassa Depositi e Prestiti.

    • 04 Feb 2020
  • SSA secondary pricing update: Big fat Greek rally

    Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark and bid-yields from the close of business on Monday, February 3. The source for secondary trading levels is ICE Data Services.

    • 04 Feb 2020
  • CDP lining up social housing bond

    Cassa Depositi e Prestiti will come to market on Tuesday with a 10 year euro benchmark financing social housing projects in Italy.

    • 03 Feb 2020
  • EIB to reopen dollar SSAs following Asian hols

    The European Investment Bank will bring the first dollar deal from a public sector borrower following the extended Lunar New Year holiday, with SSA bankers expecting plenty more supply to follow in the currency.

    • 03 Feb 2020
  • Finland and Land NRW jump to long end amid Coronavirus rally

    The Republic of Finland and the State of North Rhine Westphalia hired banks on Monday to prepare syndicated bonds at the long end of the euro curve. Yields of eurozone haven assets remain compressed while fears of the coronavirus outbreak intensify.

    • 03 Feb 2020
  • BofA makes Gilts trader head of rates

    Bank of America has appointed Snigdha Singh to head up its rates trading team for Europe, the Middle East and Africa.

    • 03 Feb 2020
  • JFM coming to euros for green debut

    The Japan Finance Organisation for Municipalities has picked banks for its first ever green bond, opting to print in euros for only the second time in the borrower’s history.

    • 03 Feb 2020