Currencies

KfW is set to make a return to the Canadian dollar bond market on Tuesday, marking its first appearance in Maples since February 2019, when it sold a C$1bn three year.

Relief swept through secondary bond markets when Mario Draghi agreed to form a new government to steer Italy through the pandemic. But he must tread a narrow and treacherous path if he is to succeed and primary capital markets are to feel any lasting benefits. As Lewis McLellan and Tyler Davies report, next week will show whether Thursday’s burst of optimism was justified.

Fonplata, the South American supranational development bank, raised Sfr200m of 5.5-year bonds in the Swiss franc market on Wednesday, increasing the size of the deal from an initially planned Sfr150m. Alongside this, a clutch of domestic borrowers also tapped the market this week.

The Province of Alberta made a rare appearance in the Kangaroo market on Wednesday, printing A$100m with a February 2046 bond. Daiwa Capital Markets ran the books.

Fonplata, the South American supranational development bank, raised Sfr200m ($222m) of 5.5-year bonds in the Swiss franc market on Wednesday, increasing the size of the deal from an initially planned Sfr150m.

The possibility that former ECB chief Mario Draghi may become the next Italian prime minister has caused excitement among bond market participants and a sharp rally in risky assets.

The Hong Kong Mortgage Corp (HKMC) made a rare public appearance in the debt market this week with a dual-currency transaction worth $1.29bn-equivalent. Featuring a Hong Kong dollar portion and an offshore renminbi tranche, the deal helped the issuer get ‘competitive’ pricing levels, said bankers.

Cyprus attracted sold demand when it hit the market for a new five euro benchmark on Tuesday. The trade was priced with a positive yield – a rarity for a eurozone sovereign bond in this part of the curve.

Portugal mandated banks on Tuesday to lead the sale of a new 30 year bond as it looks to pounce on the strong investor appetite in the long end of the euro curve.

The Singapore Exchange has sold a €240m zero coupon convertible bond, its debut equity-linked issue and the first CB from a stock exchange globally in eight years.

India’s NTPC, formerly known as National Thermal Power Corp, is making a rare venture into the euro loan market.

German politicians are planting their flags, preparing for the leadership tussle that is set to follow chancellor Angela Merkel's departure from the post later this year. Low rates have increased debt's popularity as the means to fund economic stimulus but Germany’s frugality is legendary and now a fight is brewing over relaxing its famous debt brake, writes Lewis McLellan.