KfW

The Inter-American Development Bank and KfW drew strong demand in the dollar SSA market on Tuesday, with the former issuing just the fourth 10 year dollar benchmark from an SSA of the year.

The first busy week for benchmarks after the summer break returned a slew of solid scores for borrowers, with Finland’s 10 year euro deal the pick of the bunch.

Rating: Aaaa/AAA

KfW took advantage of the stable market backdrop to issue a new €4bn seven year euro benchmark on Tuesday, but some bankers not on the mandate questioned the degree of interest in the trade.

Finland and KfW received strong investor demand for the first sizeable deals in the euro public sector market following the summer.

Concerns over the upcoming budget from Italy’s populist government — as well as the months’ long economic crisis in Turkey — took its toll on government bond yields in the eurozone periphery this week. But a hunt for safe assets among investors did play into the hands of top tier credits.

This week's funding scorecard looks at the progress Europe's supranationals and agencies at the mid-point of the third quarter.

A pair of taps from the Council of Europe Development Bank (CEB) and KfW on Tuesday — ahead of the Bank of England’s expected rate rise later this week — ensured the non-UK sterling SSA market remains on track for a record year of issuance.

Guarantor: Federal Republic of Germany

Investor appetite remains strong for longer dated euro SSA bonds, encouraging the likes of EFSF and KfW to tap the long-end of the curve this week. But the question is: will the demand last, and for how long?

KfW on Monday priced a tap of its recent 15 year euro bond in line with guidance, doubling the overall deal size to €2bn.

A pair of European agencies have increased their funding target ranges for 2018 as they prepare for the second half of the year.