EIB

The EIB priced a long-dated EARN on Tuesday afternoon, its longest dated new issue in the format since 2010. The long tenor enabled the issuer to hit the 3% yield bogey that gets German insurance companies hot under the collar, but volatility around the euro swap rate meant that the borrower had to pay a decent new issue premium to be sure it could get the required size away.

The EIB has hired four banks to run a syndication of an October 2033 EARN in a week which looks set to be dominated by dollar supply — three other borrowers having hired for dollar deals by Monday afternoon.

Plenty of SSA issuers took a big bite out of their funding targets in the short window of issuance between the end of the summer and this week's FOMC meeting. Here we provide updated figures on selected European supranationals and agencies.

The European Investment Bank sold a tap of a 10 year EARN on Tuesday, with the increase falling slightly short of full subscription as investors proved reluctant to commit large amounts of cash to the deal. The City State of Berlin also came to market, opting for eight year debt.

The European Investment Bank tapped its 1.375% November 2019 Climate Awareness Bonds for €250m on Monday, taking the amount outstanding to €900m. The tap was driven by reverse enquiry from socially responsible investors in Europe.

The European Investment Bank was set to price a three year dollar global deal on Wednesday afternoon, following in the footsteps of the International Finance Corporation which sold its largest ever deal in the currency the day before. More supply could follow the EIB — another supranational name is rumoured to be looking at a mandate for a deal as early as tomorrow.

The International Finance Corporation was set to price the first five year benchmark in dollars since the European Bank for Reconstruction & Development came a month ago as SSA Markets went to press. A barnstorming investor response has enabled the issuer to set the size for its largest deal ever.

Finland has hired five banks to run a five year syndication, making it the first borrower to tackle a new euro benchmark in the belly of the curve since the summer break. KfW, meanwhile, priced an oversubscribed 10 year on Tuesday afternoon while Rentenbank got a short dated print away.

Ahead of an expected flood of issuance kicking off in the last week of August, here are the updated funding scores for selected European supranational and agency borrowers.

The biggest supranational and agency issuers have had a tough choice to face this year: front-load like crazy because 2010-2012 has taught us that the markets can get horrendously volatile at any time, or, mindful of the costs of holding cash on balance sheet, slow down their funding schedules to a more stately pace. By the end of September some will be sitting smugly and some left with red faces.

The European Investment Bank took advantage of insurance company demand to place a long dated deal late last week.

A golden opportunity to lock in cheap duration funding over the summer may go begging if SSA borrowers ignore the Kangaroo market, said senior SSA bankers. A growing bid from Japan for long-dated paper and the biggest month for Kangaroo bond redemptions since 2011 is set to leave a bumper bundle of cash looking for a place to be invested.