Barclays

John Deere Bank, the financing arm of the agricultural machinery group, launched a rare five year floating rate note yesterday that found strong demand, as European investors warmed to a structure that will protect them against interest rate rises.

LatAm syndicate bankers say they believe this week’s three deals from financial issuers is a sign of more supply to come from the sector as Brazil’s Banco Daycoval received such strong demand that it printed $500m having originally been intending to sell a below benchmark size deal.

Attractive pricing, a core group of interested investors and a desire to carry out a transaction to consolidate Mexico’s strength as a new A-rated issuer drove the sovereign to go for an ambitious 100 year sterling bond, the country’s director public credit told GlobalCapital.

China Development Bank has priced an Asean-targeted three year dim sum at 3.35%, with investors piling in to benefit from the pick-up over what are seen as expensive dollar credits. GlobalRMB understands that the borrower had considered a smaller deal to get cheaper funding, as tight pricing was its priority. But it chose a benchmark size to ensure a more diverse investor base.

Mexico surprised the market with a 100 year sterling transaction on Wednesday morning, becoming only the second borrower ever to launch such a long dated bond in that currency. However, a rival banker deemed the deal an ‘ego trade’, and felt the issuer was paying up for both the choice of currency and tenor.

UK gas metering company Smart Metering Systems has signed a $174m-equivalent 10 year revolving credit facility.

Latin America bolstered meagre emerging market issuance this week, ignoring persistent fears about fallout from Ukraine. Petrobras pulled off an impressive $8.5bn six tranche bond and Mexico is in the market with a rare 100 year sterling deal. But Sunday's planned referendum on Crimea joining Russia is weighing on risk appetite, and could quash any potential pipeline.

Mexican microfinance company Crédito Real will buy back at least $180.7m of its $210m of outstanding bonds due 2015 after bondholders owning 86.06% of the notes tendered their debt.

China Development Bank is back in the market with a three year CNH transaction.

Energie Baden-Wuerttemberg launched a corker of a hybrid capital issue on Tuesday, raising €1bn to bolster the subordinated layer of its capital structure at blisteringly tight pricing, thanks to perfect timing after a drought of issuance.

The Republic of Azerbaijan’s debut deal was trading up on Tuesday morning after the sovereign attracted a respectable $3.25bn order book for its $1.25bn 10 year transaction. Analysts felt the final price was fair to tight, but in an environment of meagre supply buyers are happy to pay for rarity and a strong credit story.

Energie Baden-Wuerttemberg, the German electricity and gas supplier, is set to issue its second hybrid capital bond on Tuesday, after holding a conference call with investors on Monday.