IFC

The received wisdom in the SSA world is that pulled deals — like Madrid’s abortive attempt to come to the market this week — cause lingering investor distrust and make it hard for borrowers to return to markets when next they need to. But Madrid’s circumstances were as much to blame for this week’s mishap and SSA issuers should still see this autumn as a chance to drive down costs of funding.

Rentenbank reopened the benchmark market for SSA borrowers on Monday with the first of a possible quartet of dollar trades that bankers expect to see in the near future.

The Inter-American Investment Corporation (IIC) has mandated four banks for its debut offering which will be a dollar-denominated floating rate note.

The International Finance Corp (IFC) this week paid more for its return to the dim sum bond market than it did in its debut last year. Investors are seeking higher yields to compensate for diminishing expectations of the appreciation of the renminbi.

With a large NZ$500m redemption due on Thursday, International Finance Corp (IFC) entered the Kauri market on Monday pricing a new NZ$300m ($242.55m) 3.5% five year line – a tenor that has dominated SSA issuance this summer.

A lack shortage of supply in secondary is driving investors into private placement markets. Washington supranationals raised funds through innovative methods this week, including Uridashi and private placements in unfamiliar currencies.

Export Development Canada (EDC) and the Province of Manitoba entered the Kangaroo market on Thursday, the first offerings in Australian dollars from a Canadian borrower since July 2011.

Two chunky redemptions from the International Finance Corp (IFC) and the European Investment Bank (EIB) might bring the pair back into the Kauri market soon. Although the IFC is likely to be well bid a by the market’s conservative investor base, the EIB may struggle to refinance its deal directly at an acceptable price.

The International Finance Corp (IFC) answered investors’ prayers on Tuesday when it sold the second largest Kangaroo bond of the year.

The International Finance Corp (IFC) made a much awaited return to Kangaroo issuance on Monday, when it launched a A$300m ($306.8m) five year note via Deutsche Bank, TD Securities and Westpac.

The Inter-American Development Bank (IADB) got into the Kangaroo market early on Friday when it priced a A$200m no grow 3.75% 10 year stealth issue ahead of what is expected to be a busy week of issuance in the sector.

The Kangaroo market is set to host a streak of deals from Washington supranationals as soon as next week. With these borrowers having just entered a new financial year, SSA supply having bounced back in the last two weeks and Kangaroo investors desperate to buy lower-yielding but safer assets detached from Europe, rumoured issuers including the International Financial Corp and the World Bank are primed for success if and when they decide to print Australian dollar paper.