EIB

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.

A quiet dollar market left space for sterling issuance on Monday, with both the European Investment Bank (EIB) and the Asian Development Bank (ADB) launching deals. The former plumped for a five year floater while the latter priced a tap of three year notes.

Barclays, Deutsche Bank and Goldman Sachs have been mandated by the European Investment Bank to lead manage a new three year benchmark. The deal is expected to appeal to bank treasuries and central banks looking to pick up short dated paper.

The European Investment Bank is likely to settle for $1bn at a sale of a new seven year RegS/144A benchmark having attracted a $900m over the course of Monday morning, a banker close to the trade said.

The EIB sold a tap of 12 year bonds on Monday morning to a muted investor reception. While the deal reached the minimum size, tight pricing and a focus on longer dated maturities prevented the deal from growing.

The European Investment Bank and Municipality Finance both tapped a sterling market hungry for deals on Wednesday. The EIB was able to seize on investor demand to price a deal with very little new issue premium over their sterling curve, despite already having raised £1.75bn in the currency already this year.

The Nordic Investment Bank and the European Investment Bank snapped up opportunities in niche currencies on Friday — NIB sold its first Brazilian real deal in almost two years and the EIB tapped a five year Norwegian krone deal. The deals are likely to be the first of a rush — niche currency markets will be a hotbed of activity in the coming weeks, said bankers.