Currencies

A busy Tuesday for dollar supply in Asia DCM is continuing unabated with a handful of launches and mandates, including one in euros, announced on Wednesday.

Euro conditions are excellent for public sector borrowers, with Spain pulling in a nearly €30bn book for an €8bn 10 year — which bankers away from the trade said indicated a high presence of quality investors — and KfW raising €5bn after picking a seven year deal over a shorter tenor. Another pair of issuers are now looking to take advantage.

Four European agencies, and a New Zealand sub-sovereign found funds in the Kangaroo market this week. Nederlandse Waterschapsbank (NWB) on Tuesday priced a 10 year tap of a Kangaroo bond some 10bp tighter than where the original issue priced in January. Bankers said the pricing was an indication of the sheer levels of demand for long dated Kangaroo paper.

Greece’s bond yields tumbled to their lowest levels in years after Moody’s upgraded the sovereign last week, and talk of a second market comeback is of the more optimistic kind than just a few months ago. But Greece’s government — which wants to return to bond issuance this year — and its creditors would do well to remember that we’ve been here before. As always, Greece will never enjoy a full market presence without some real debt relief.

The euro market for public sector borrowers looks set to kick back into action after a quiet last week, with a pair of big borrowers mandating for trades to come on Tuesday.

Ireland has printed just shy of the 50 year part of the euro curve using a pair of private placements, a market it has used with increasing frequency over the last year.

The sub-underwriting phase of a HK$28bn ($3.6bn) financing to support the take private of Hong Kong-listed footwear company Belle International Holdings has wrapped up, with nine lenders joining original mandated lead arranger and bookrunner (MLAB) Bank of America Merrill Lynch (BAML).

US vehicle parts manufacturer Federal-Mogul cruised through its second fixed rate deal in the euro high yield market this week.

Chinese real estate developer Times Property has hit the loan syndications market for a dual currency financing, about two months after issuing an offshore bond.

Turk Eximbank, which wrapped up a €412m refinancing in March, has turned its attention to the Asian loan market for a fresh money €300m borrowing.

Samvardhana Motherson Automotive Systems Group is seeking €300m from a seven year bullet.

Market participants are clamouring for sovereigns to join France and enter the green bond market. It would likely help the market, but would it help the environment?