Public sector issuance is expected to resume at pace on Tuesday, after a handful of borrowers announced mandates on Monday.
“I wouldn’t say it’s from issuers that have postponed their deals,” said one SSA banker. “It’s more that they’ve been watching out for good windows, and last week’s deals showed there is demand out there.”
The banker felt that SSA bonds offered in the primary market would continue to find good reception, despite a reescalation in the Iran war after US forces attacked and seized an Iranian cargo ship in the Strait of Hormuz.
European Investment Bank (Aaa/AAA/AAA) was among those to announce deals on Monday. The bank plans to sell a no-grow €4bn three year EARN benchmark bond. Commerzbank, Goldman Sachs Bank Europe SE, HSBC and NatWest are lead managers.
The transaction will be EIB’s third benchmark in two weeks. On Tuesday, the issuer broke several records when it priced a no-grow $4bn 3.75% May 2029. On Wednesday, it increased the size of its April 2023 floating rate sustainability awareness bonds to £1.5bn.
French agency Caisse des Dépôts et Consignations (Aa3/A+/A+) plans to sell a no-grow €1bn five year sustainable bond. BNP Paribas, Crédit Agricole, La Banque Postale, Natixis and Santander will lead CDC’s transaction.
Two German states have also mandated banks for euro benchmark bonds.
Schleswig-Holstein (—/—/AAA) appointed BayernLB, Danske Bank, DekaBank, Goldman Sachs and UniCredit as lead managers for its 10 year euro benchmark bond.
Meanwhile, North Rhine-Westphalia (Land NRW) has mandated Barclays, BNP Paribas, Danske, ING, Nomura and NordLB for a euro benchmark 10 year sustainability bond. The issuer, which is rated Aa1/ AA/AAA, will be available for investor meetings until Friday, April 24.
In dollars, Tokyo Metropolitan Government hopes to build on the success several other public benchmark issuers had last week.
The Japanese sub-sovereign announced initial price thoughts on a no-grow $1bn April 2031 bond at Sofr mid-swaps plus 67bp, equivalent to 39.4bp over US Treasuries, via Barclays, Crédit Agricole, Morgan Stanley and Daiwa.
