EIB

After several weeks of focusing on conventional bonds in core currencies, SSAs popped back into the socially responsible investments (SRI) market this week. Nederlandse Waterschapsbank (NWB) is laying the ground for an affordable housing bond in euros, while the European Investment Bank found a solid reception for a Climate Awareness Bond that came in rare seven year dollar form.

The European Investment Bank is set to plug a gap in its dollar Climate Awareness Bond curve after mandating banks on Tuesday for a June 2025 trade, opting for a rare seven year dollar bond.

The European Investment Bank is preparing a new product: Sustainability Bonds, which will complement its Climate Awareness Bonds.

Rating: Aaa/AAA/AAA

Sterling seemed to be the only game in town this week. Two SSA issuers printed in the currency on Wednesday, taking advantage of a favourable basis swap.

As negotiations over the future of Italy’s government begin in earnest, investors appear to be betting that political risk for the country has been overestimated.

The Japan Fair Trade Commission (JFTC) has closed an investigation into market manipulation by Bank of America Merrill Lynch and Deutsche Bank without taking action, because the five year limit on prosecutions has elapsed.

Despite what one banker called a “disaster” of an Italian election result, the euro market for public sector debt proved enormously resilient this week. Just as well, as the ECB made it clear at its meeting on Thursday that the market will receive no additional monetary stimulus.

Rating: Aaa/AAA/AAA

The European Investment Bank sold Z1.5bn ($439.6m) of seven year notes on Wednesday. It was the first time the supranational has issued a benchmark sized floating rate note in the currency as it bids to attract a new group of investors.

Rating: Aaa/AAA/AAA

A new study of green bond pricing has stopped short of saying that green bond issuers can generally expect to get tighter new issue premiums. But the report’s lead author did say: “Green bond buyers can’t expect to receive a new issue premium — that is itself quite a bold statement.”