EIB

Several issuers are preparing dollar deals in the wake of a popular five year global from the European Investment Bank on Tuesday afternoon.

The International Finance Corporation (IFC) will price a $2bn June 2018 bond later on Wednesday afternoon at mid-swaps less 3bp, which will be the tightest supranational five year deal so far this year. It is also flat to the IFC’s outstanding 2017s and 3bp inside the trading level of the outstanding Inter-American Development Bank (IADB) five year.

L-Bank priced a £250m December 2017 note on Wednesday afternoon, while the European Investment Bank also looked to sterling to raise funds in the belly of the curve, pricing a tap of January 2018 paper.

The lack of yield on offer in dollars and euros is encouraging investors to look towards niche and local currencies in an effort to maximise the return on their investment. With the EBRD selling its first ever Vietnamese dong bond this week, niche currency bankers are confident in the outlook for emerging market currencies.

The European Investment Bank sold its second Swiss franc trade of the year on Friday, tapping 11 year debt. The EIB has been forced to be flexible in its funding in Swiss francs, with the small deal size reflecting the tight pricing for high grade international credits in the currency.

Export-Import Bank of Korea (Kexim) has mandated banks for a roadshow ahead of what would be its debut deal in the sterling market. The European Investment Bank also launched a tap of five year sterling debt on Thursday.

The European Investment Bank has taken full advantage of an otherwise quiet issuance week to print a new €4bn seven year EARN.

The EIB mandated banks for a new seven year EARN on Tuesday, which is expected to price on Wednesday. The issuer plumped for a seven year maturity to catch a wide investor base while also offering a smidgen more yield than a five year. The Bank of England has also mandated banks for a new three year dollar bond.

The European Investment Bank broke records on Monday as central banks and official institutions led the charge for a tap of its 1.375% January 2018 bonds which took its quarterly sterling volume to an all time high.

The euro market was easily outshone by dollars this week. While it produced a pair of benchmarks that were comfortably oversubscribed, the concession that issuers had offered contrasted sharply with dollars, where three issuers priced $13bn of debt in just 48 hours at levels right on top of their curves. But that’s no reason for despair, the euro market is still robust.

The Kingdom of Sweden is set to price its largest ever dollar bond on Wednesday afternoon, a $3bn five year as SSA borrowers revel in the strength of the primary market in dollars. The trade comes on the same day as KfW and a day after the EIB priced $5bn three year global deals each.

The European Investment Bank (EIB) has attracted a hefty order book to a three year global deal as it latches on to the rampant interest in short-dated deals among investors.