Americas

World Bank has priced the first deal from a new retail focused socially responsible investment programme — and it could sell more notes as often as once a month.

Goldman Sachs and Sumitomo Mitsui Trust showed on Tuesday that it is possible to place bonds in the market backed by other rated debt with recourse back to the issuer – and that it was possible to do so at an advantageous spread to a differentiated group of investors. Though abhorred by some covered bond stalwarts, the deal suggests a potentially new funding avenue and a new source of highly rated debt for investors.

SSA borrowers this week provided investors with a strong line up of innovative products. A new standard was set in SRI bonds, Cyprus raised €1bn via an innovative switch offer, Italy sold two year debt at a negative yield and British Columbia is lining up its debt Panda bond.

Latin American sovereigns’ march back towards European bond markets continued on Tuesday as Peru achieved its lowest ever coupon on an international bond with its long 10 year. But opinion is split on the value of the euro market.

Procter and Gamble, the US consumer goods company, brought a €1.25bn bond issue to the European market on Tuesday, bringing life to an otherwise moribund reverse Yankee market.

Peru opened books on its first euro transaction in over a decade on Tuesday morning, while other Latin American sovereigns are eyeing deals in the currency.

Struggling Brazilian telco Oi received a welcome lift in the eyes of its bondholders on Monday after a Russian investment group proposed to invest in the company if it merges with rival Tim.

Peruvian sugar cane producer Corporación Azucarera del Perú (Coazucar) has given bondholders more time to commit to its tender offer as it looks to cut its exposure to the dollar.

The Province of British Columbia (BC) is mulling a debut Panda bond, which would set another record for the province as the first foreign government issuer in China's onshore bond market. However, to go ahead BC will need the Chinese regulator to allow sovereigns into the recently reopened Panda bond market.

Euronext has launched AtomX, a service that offers central clearing for bilaterally negotiated derivatives trades that would otherwise have been over the counter.

Trad-X, the trading platform for global interest rate derivatives, reported on Monday that is has traded more than $2.5tr of swaps since launch, with 2015 having accounted for over half this volume.

Latin America development bank Corporación Andina de Fomento (CAF) has picked leads for a euro transaction and will hold investor calls this week.