Currencies

The Swiss franc bond market saw its first Matterhorn –– a foreign deal of Sfr1bn ($1.02bn) or more — of the year on Wednesday, and the first from a BBB issuer, as Verizon Communication raised Sfr1bn with its debut. It was a sign that Switzerland has once again become an attractive destination for international borrowers, writes Silas Brown.

US cloud and physical data manager Iron Mountain’s €300m deal proved European investors can give US IT company debt a chance despite some troubled recent deals.

The Kangaroo market witnessed a flurry of deals this week as issuers dipped into an investor base starved of paper. The rush of deals follows a period of inactivity during which pricing –– compared with other niche currencies –– had been unfavourable, forcing issuers to wait until costs worked for them again.

KfW has raised the threshold of sustainability it requires as an investor, as part of a growing trend for bond buyers to focus on the impact of their investments.

Industrial and Commercial Bank of China (ICBC) Dubai sold a dual tranche $700m floating rate deal on Monday, followed by a €500m floater on Wednesday.

The European Financial Stability Facility confounded the expectations of syndicate bankers by opting to print €6bn of 16 year paper, despite having completed its second quarter funding programme.

The SSA market has played host to a series of strong deals this week and shows no signs of fatigue, as investors flock to make the most of the glut of supply.

BOC Aviation is out with a five year bond while Industrial and Commercial Bank of China Dubai branch is making a swift return to the market with a euro offering following a dollar outing on Monday. More deals are also in the pipeline.

The European Financial Stability Facility is lining up a 16 year euro benchmark for Wednesday, following a blow-out €7bn 30 year OAT.

The Nordic Investment Bank is raising funds in the middle of the Kangaroo curve, as a scarcity of mid-curve issuance allowed the leads to circulate tight pricing guidance.

Verizon Communications will meet Swiss investors on Tuesday afternoon to discuss an inaugural Swiss franc bond.

Industrial and Commercial Bank of China Dubai sold a dual tranche $700m deal on Monday, and is looking to quickly follow it up with a planned euro-denominated bond.