EIB

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.

Socially responsible investment (SRI) bonds are making a splash. The IFC, IFFIm, and the EIB have brought deals this year and the African Development Bank has plans to sell its inaugural international trade this year. Principally an SSA product, bankers in the market are split as to whether this is a genuine good thing or a whole heap of greenwash. A market this immature will have anomalies, but that should not stop its development.

The African Development Bank (AfDB) has announced that it plans to issue a Green Bond in the autumn. Meanwhile the EIB was putting the final touches on a €650m Climate Awareness Bond as SSA Markets went to press.

Bank Nederlandse Gemeenten (BNG) may lead a small handful of issuers looking to print deals before investors pack their buckets and spades and head to the beach for the summer. The Dutch agency joins its compatriot Nederlandse Waterschapsbank (NWB) among the names that may well access public markets before August.

The European Investment Bank (EIB) tapped 10 year Swiss franc debt on Wednesday, adding to a string of high-grade issuance in the currency this week. Oesterreichische Kontrollbank Aktiengesellschaft (ÖKB) has already accessed the market, selling a new seven year line on Tuesday, leaving Swiss franc syndicates sanguine on the market’s prospects.

KfW took advantage of a clear issuance window on Tuesday to bring a long-awaited euro benchmark, shrugging off uncertainty over how fast rates will rise in the run up to the Federal Open Market Committee’s meeting on Wednesday. The result was hailed as “encouraging” by market participants who also had the spectacle of a €1bn tap of the EIB’s recent 10 year EARN to take comfort from.

This week's funding scorecard focuses on some of Europe's key supranational and agency borrowers. Forthcoming editions will bring updates from other French, German, Spanish and Scandinavian names.

With sentiment turning against new issues this week after a prolonged rates sell-off, the benefit of front-loading issuance programmes is there for all to see. There has been nothing as drastic as markets shutting down to contend with, but a spate of weak deals this week has proven that the relentless bid that had sustained the new issue market for over six months was not indefatigable.