EIB

Blow-out dollar deals by the European Investment Bank and Network Rail, which were priced on Wednesday afternoon, have demonstrated the rampant appetite for SSA paper. And now more issuers look set to take advantage of the conditions.

The European Investment Bank and Network Rail both have both mandated banks to lead new dollar transactions, the former looking at a three year global and the latter a five year RegS/144A trade. Leads announced initial price thoughts for both trades on Tuesday afternoon, with pricing expected on Wednesday.

The European Investment Bank (EIB) and Kommunalbanken (KBN) accessed the sterling market on Monday afternoon, selling taps of three and four year debt respectively. The deals follow a roadshow by Transport for London (TfL) ahead of a possible bond from the issuer.

The EIB sold a tap of 15 year Swiss franc debt on Thursday afternoon, taking advantage of keen investor appetite stimulated by a lack of international issuance in the currency. A difficult basis swap kept the size of the trade small, despite healthy demand.

NRW.Bank sold long four year sterling debt on Thursday afternoon, taking advantage of investor appetite for sterling paper at that part of the curve.

The European Investment Bank returned to the Canadian dollar market for the first time since 2007 on Wednesday, selling a five year global bond. The deal proved popular with investors looking for a premium over domestic SSA issuance in the currency.

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.