HSBC

After a barren year of sterling bond issuance from international borrowers, a dry patch that some thought would last until the Brexit referendum in June, an Australian company finally broke the silence on Wednesday.

Will euros or dollars dominate SSA bond issuance in the second quarter? Debate over the direction of primary markets broke out this week with issuers scheming arbitrage trades in euros, while others believe the dollars will win out. Craig McGlashan reports.

With the dollar market taking an early Easter holiday, the World Bank came through as the sole issuer to print in the currency, hitting $3bn in an arbitrage trade that was heralded as a “strong signal” of the health of the dollar market.

European Stability

Covered bond primary activity slowed this week with just two €500m seven year trades emerging from banks in the Netherlands and Italy.

The World Bank surpassed expectations by raising $3bn of four year cash on Wednesday, in what one banker away from the deal said was a "strong signal" for the dollar market.

SNCF Réseau became the second SSA issuer of the week to target the long end of the euro curve, printing a €500m May 2037 on Wednesday.

Dubai Islamic Bank priced the year’s first public bond from a Gulf Co-operation Council financial borrower tight to its existing curve on Tuesday thanks to strong demand from regional investors.

State Bank of India launched its $500m fundraising into general syndication on Tuesday via eight mandated lead arrangers and bookrunners.

Mercedes-Benz Auto Finance has become the latest international name to make its debut in the China auto ABS market, executing a tightly priced Rmb2.5bn ($385m) trade on Tuesday.

HSBC has made a series of senior appointments in India, including promoting Hitendra Dave to head of global banking and markets for the country.

China's Fosun International is planning to spin off and list wholly-owned insurance subsidiary Ironshore, according to a filing with the Hong Kong Stock Exchange.