IFC

Public sector bond market participants are growing increasingly frustrated at the pace of the implementation of Ester, the alternative euro risk-free rate to replace Euribor. Borrowers are unable to plan for, let alone issue, a bond linked to the benchmark without the rate being published by the European Central Bank. That leaves the euro far behind other markets where Libor is being replaced, writes Burhan Khadbai.

The International Finance Corp has promoted internally to appoint a deputy treasurer based in London.

This week's funding scorecard looks at the progress supranationals have made in their funding programmes.

Rating: Aaa/AAA

The sterling public sector market returned from the summer with a number of issuers heading for seven year maturities. Bank treasuries were the main driver behind the move, with the tenor offering an attractive pick-up over three month sterling Libor as a result of a widening in seven year swap spreads.

There is little demand for another public sector issue referenced to Sonia, the preferred alternative to sterling Libor, in the wake of the European Investment Bank's successful deal in June, a senior SSA portfolio manager said this week.

International Finance Corporation printed a record size for its seven year on Tuesday, with huge backing from bank treasuries, despite the trade offering no new issue concession.

International Finance Corporation mandated banks for a new sterling benchmark deal on Monday, with the issuer returning to the currency for the second time this year.

The International Finance Corp drew one of the highest BondMarker scores of the year so far with its return to five year dollars after two years away. The trade came in a week of few, but very well received, deals, with the European Stability Mechanism scoring its highest average score of 2018 so far.

The International Finance Corporation this week sold its first Kazakh tenge bond in the country’s domestic market.

Rating: Aaa/AAA

Public sector borrowers could beat the summer slumber if they bring dollar deals, said SSA bankers — and they may be rewarded for doing so, with conditions unlikely to be able to get better than this week’s.