Asian Development Bank ADB

Nederlandse Waterschapsbank is likely to issue a three year next week to capitalise on strong demand from reserve managers and bank treasuries for short dated dollar assets. The appetite for three year dollars was unabated on Wednesday with FMS Wertmanagement receiving $2.6bn of orders for a $2bn deal in just under two hours of formal bookbuilding, and this despite $4.5bn of similar supply from the Bank of England and Asian Development Bank in the past two days.

Germany’s FMS Wertmanagement mandated banks to run a three year global on Tuesday, joining the Asian Development Bank and Bank Nederlandse Gemeenten in the hunt for dollars this week.

A quiet dollar market left space for sterling issuance on Monday, with both the European Investment Bank (EIB) and the Asian Development Bank (ADB) launching deals. The former plumped for a five year floater while the latter priced a tap of three year notes.

The European Bank for Reconstruction & Development (EBRD) opened a long-awaited dollar trade on Monday afternoon, following a rise in Treasury yields late last week. However the book build on the seven year deal was slow, which bankers attributed to investors expecting yields to back up further.

The Asian Development Bank priced its first Kangaroo deal of 2013 on Tuesday — a long five year trade. The Nordic Investment Bank also capitalised on investor demand for niche currency debt to sell a New Zealand dollar tap.

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.