EIB

Supranational and agency borrowers have long anticipated a wave of demand from American investors as US government sponsored enterprise issuance dwindles. But this week there were concrete signs that the dollar bond market has shaken off the problems that prevented the big switch. Craig McGlashan reports.

Public sector borrowers enjoyed a storming sterling market this week and, with many of the supporting factors still in place, SSA bankers are confident that more deals will follow.

The green bond wave is set to rise higher in 2016, but as before, most of the deals will not help the environment much. One bond that did was sold in the closing days of 2015 — but such deals are still bought only by a small fraction of investors.

Last year’s difficult dollar conditions looked firmly in the past on Tuesday as a pair of issuers tapped different parts of the curve for big deals — and other issuers readied themselves for trades.

The European Investment Bank blew the doors off the sterling market with a record breaking deal on Tuesday, and two other issuers quickly followed.

Despite the currency tanking against the dollar in 2015, investment in Brazilian real denominated medium term notes is at a healthy level.

A pair of SSA heavyweights are limbering up for the first public sector dollar benchmarks since the US Federal Reserve raised rates late in 2015 — and plenty more could follow ahead of the next Fed conflab.

European Investment Bank has launched its first equity index-linked bond dedicated exclusively to renewable energy and energy efficiency projects as the Climate Bond Initiative begins a public consultation on a proposed standard for water bonds.

European Investment Bank has launched a rare, privately placed index-linked Climate Awareness Bond, while World Bank is offering retail investors the chance to buy similarly structured green paper.

Public sector borrowers are looking for opportunistic deals in niche currency medium term notes as the year draws to a close.

European Investment Bank has launched a rare, privately placed index linked Climate Awareness Bond, while World Bank is offering retail investors the chance to buy similarly structured green paper.

Public sector borrowers are looking for opportunistic deals in niche currency medium term notes as the year draws to a close.