EIB

A remarkable sterling deal from the European Investment Bank sparked off a week that could become a record opener for supranational and agency issuance in the currency.

A pair of public sector borrowers switched up their approaches in dollars on Thursday, with the European Investment Bank taking the rare move of revising pricing and Caisse d’Amortissement de la Dette Sociale bringing a trade earlier than normal.

A dual tranche global deal from the Asian Development Bank on Wednesday at least temporarily dashed hopes that this year could be strong for 10 year dollar benchmark issuance — although some bankers away from the trade felt that the problems were idiosyncratic rather than reflective of demand.

The European Investment Bank set a marker on Wednesday that sterling issuance could be just as hot this month as it was in January last year — as another pair of issuers hoped to add further evidence of that this week.

SSA borrowers have wasted no time in approaching the primary market this year and the early pipeline appears strong. But as buoyant as conditions appear, there was evidence to suggest investors will not be buying everything thrown their way at any old price.

KommuneKredit and the Asian Development Bank (ADB) will reopen the dollar market for SSA borrowers on Wednesday. Meanwhile, the EIB is lining up to perform the same service in sterling bonds.

The European Investment Bank will have a funding target of €60bn for 2017, exactly in line with its goal for this year. The figure comes despite EIB having €56.1bn of redemptions next year, down from €65.7bn in 2016.

SSAs are turning to the MTN market to meet investor requests and to pick up some pre-funding in December, with the bulk of their funding needs for the year completed.

The 28 finance ministers of the European Union are expected to approve the extension of the European Fund for Strategic Investment (EFSI) on December 6.

The European Investment Bank added a A$100m ($75.5m) tap to its August 2026 Kangaroo bond on Monday, before following up with its first Mexican peso trade since the US election.

The European Investment Bank added a A$100m ($75.5m) tap to its August 2026 Kangaroo bond on Monday.

World Bank has reopened the 10 year part of the dollar curve, with other public sector issuers keen to follow it into the tenor.