Asian Development Bank ADB

The Asian Development Bank (ADB) launched its first Australian dollar bond of 2013 on Monday morning, Sydney time, taking advantage of good investor appetite for the currency. The opening weeks of the year have seen good interest in the Aussie dollar owing to the high yields on offer and positive sentiment regarding the currency.

The African Development Bank (AfDB) will become the third supranational borrower this week to price a dollar benchmark trade proving that there is adequate appetite for rich paper from top quality borrowers despite the meager yields and tight spreads on offer.

The future looks set to be one of smaller but more frequent deals for supranational borrowers if Tuesday’s prints from the Inter-American and Asian Development Banks are anything to go by. Both borrowers opened books on new global format benchmarks in the morning with pricing expected later in the day. Meanwhile, Bank Nederlandse Gemeenten tested the notoriously tricky 10 year maturity following KfW’s success with a similar deal last week.

Several supranational borrowers are eyeing dollar issuance after a blockbuster start to the market this week, SSA Markets understands. Denmark’s KommuneKredit capped off a week of oversubscribed trades from Libor plus issuers when it sold its first ever five year.

The Asian Development Bank (ADB) sold a four year Brazilian real note on Tuesday afternoon, expanding the ADB’s limited footprint in the currency. The deal drew investor attention by offering a healthy premium over Brazilian sovereign debt.

Investors piled into a Kangaroo issue from the Asian Development Bank on Tuesday, enabling it to price a deal A$200m ($207.0m) larger than the original minimum target size and flat to its curve.

With a large NZ$500m redemption due on Thursday, International Finance Corp (IFC) entered the Kauri market on Monday pricing a new NZ$300m ($242.55m) 3.5% five year line – a tenor that has dominated SSA issuance this summer.

Asian Development Bank (ADB) sold its first Norwegian krone print in over a year on Thursday, establishing its second line in the currency.

KfW priced a five year NZ$100m ($81.26m) bond on Thursday. Although the tenor follows a trend of recent Kauri deals, the German agency opted for the less familiar Eurobond format.

Hurrah! So the EIB, the one borrower that’s been put in the corner for most of the year, finally managed to tap the Kangaroo market this week. This is a positive sign for not just the EIB but for European SSAs in general but one mustn’t forget the mid-part of the curve still remains a no-go area for the EIB.

The World Bank priced a new 2017 Kauri bond on Tuesday. Growing from just NZ$200m, bankers expect this to start a new trend for Washington supranational Kauri bonds.

Export Development Canada (EDC) and the Province of Manitoba entered the Kangaroo market on Thursday, the first offerings in Australian dollars from a Canadian borrower since July 2011.