Inter-American Development Bank IADB

Norway’s Kommunalbanken (KBN) will sell five year Kangaroo debt on Thursday, following deals in similar maturities from the African Development Bank (AfDB) and the Inter-American Development Bank (IADB) on Wednesday.

Export Development Canada (EDC) sold five year Kangaroo debt on Tuesday, attracting strong interest from central banks and bank treasuries. The deal reassured syndicate bankers that demand is strong in the currency despite falling yields. The deal is expected to be followed by taps of 10 year debt from the Nordic Investment Bank (NIB) and Rentenbank on Wednesday.

The Inter-American Development Bank (IADB) and Nederlands Waterschapsbank (NWB) both sold 10 year bonds on Thursday, ending a brief quiet spell in the maturity for Kangaroo debt.

The Inter-American Development Bank (IADB) on Tuesday failed to silence those who thought that tight pricing on a dollar deal in the difficult seven year maturity was not the way to assure itself of a blowout book. It was set to print a $1bn trade on Tuesday afternoon where the book failed to reach full subscription. Kommuninvest, meanwhile, received a very different reaction when it went for a deal at the short end of the dollar curve.

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.

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 Inter-American Development Bank took advantage of offshore interest in Kangaroo debt on Friday, tapping four year notes flat to its curve. The deal is the IADB’s first deal in the currency since it tapped 10 year debt in the first week of the year.

The African Development Bank (AfDB) will become the third supranational borrower this week to price a dollar benchmark trade proving that there is adequate appetite for rich paper from top quality borrowers despite the meager yields and tight spreads on offer.

The future looks set to be one of smaller but more frequent deals for supranational borrowers if Tuesday’s prints from the Inter-American and Asian Development Banks are anything to go by. Both borrowers opened books on new global format benchmarks in the morning with pricing expected later in the day. Meanwhile, Bank Nederlandse Gemeenten tested the notoriously tricky 10 year maturity following KfW’s success with a similar deal last week.

The Inter-American Development Bank (IADB) and the Asian Development Bank (ADB) are set to answer the burning question in the SSA dollar market on Tuesday as they attempt to find the price at which the apparently rampant appetite for SSA dollar paper extends to tightly priced supranational credits.

Several supranational borrowers are eyeing dollar issuance after a blockbuster start to the market this week, SSA Markets understands. Denmark’s KommuneKredit capped off a week of oversubscribed trades from Libor plus issuers when it sold its first ever five year.

The Inter-American Development Bank brought its third Kangaroo deal of the month on Tuesday. The IADB managed to combine punchy pricing with an increase on the target size of the deal due to a lack of supply of Australian dollar bonds in that part of the curve.