EIB

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.

The European Investment Bank sold its third Climate Awareness Bond denominated in Swedish kronor on Tuesday, tapping a seven year floater originally sold last week. Investors, particularly in Sweden, are showing an increased focus on Socially Responsible Investment (SRI) bonds, but are also unwilling to take a hit on pricing to fill out their portfolios with the paper.

The State of Hessen sold a five year floater on Monday, targeting demand from German bank treasuries looking for floating rate debt though the trade fell slightly short of full subscription. The European Investment Bank also came to market on Monday, tapping 12 year debt in response to a reverse inquiry.

The European Investment Bank was able to tap into Swedish demand for sustainable investment last week by selling a new krona denominated Climate Awareness Bond. Demand for Socially Responsible Investment (SRI) bonds is growing in Sweden and could provide an opportunity for SSAs willing to meet the pricing demands of the local investors.

The European Investment Bank (EIB) sold its first new Climate Awareness Bond in Swedish krona this year on Wednesday, privately placing a seven year floating rate note. Climate awareness bonds are becoming popular with Swedish investors, who have been providing an increasing share of the investor base of such issues.

Following an unexpectedly heavy week of issuance from European supranationals and agencies, here are the updated funding scores for selected borrowers in the category.