US investors welcome IBRD and KfW

The richening of US agencies is opening doors for the SSA community to print dollar FRNs targeted to US investors. The European Investment Bank started the trend last week and now the World Bank is in the market with a $1bn plus two year floater likely price tomorrow in the three month Libor plus high teens area. Export Development Canada is expected to follow with a similar deal next week, when the Bank of England will launch a $2bn three year fixed rate bond. Meanwhile, KfW’s $4bn five year achieved the borrower’s biggest US distribution yet at 62%. KfW went for size over price, adjusting its mid-swaps plus 90bp area price guidance to plus 95bp to accommodate a significant order from a fund manager that allowed the deal to be increased from $2bn. Read EuroWeek on Friday for the full story of the US market’s new appetite for SSA borrowers.