KfW

The European Financial Stability Facility sent out a request for proposals on Wednesday and could come with a deal as soon as next week. The bailout borrower will join several other names looking at printing in euros, but investors are cautious and borrowers could prove reluctant to test sentiment this week or next with a benchmark.

It has seemed crazy that so many issuers were prepared to sit the summer out given the benign market conditions in recent weeks.

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.

KfW sold a quartet of private placements in a range of currencies to a Swiss institutional investor on Monday. It followed up with a public Canadian deal on Tuesday.

KfW priced a five year NZ$100m ($81.26m) bond on Thursday. Although the tenor follows a trend of recent Kauri deals, the German agency opted for the less familiar Eurobond format.

Sensing an avalanche of pent-up demand that secondary markets could not satisfy, KfW waded into the Eurodollar market on Wednesday with a blowout seven year. The Eurodollar deal was heavily oversubscribed allowing the size to be increased from initial expectation and the reoffer spread to be tightened by 2bp from initial price thoughts.

Bank Nederlandse Gemeenten (BNG) tapped its 2.375% five year Canadian Eurobond on Tuesday. This marks the start of further loonie activity according to bankers.

Number one Kangaroo borrower KfW finally made an appearance in the Australian dollar market on Wednesday with a A$650m ($683.3m) August 2017 bond. The trade follows heavy Kangaroo supply from SSAs across the globe in the past month.

There was no sign of a let up in activity in the Kangaroo market this week as two issuers were understood to be considering entering the market and Nordic Investment Bank (NIB) on Monday priced a A$450m ($471.7m) five year deal.

SSA Markets understands KfW is looking to issue a new five year Kangaroo line as soon as Tuesday, and that Export Development Canada (EDC) is also monitoring the market. The African Development Bank (AfDB) capitalised on the positive market tone on Monday to tap its 5.25% 2022s.

KfW has printed in euros at a tighter level and in larger size than originally planned.

Kreditanstalt für Wiederaufbau (KfW) added SEK500m ($71.21m) worth of bonds to the unseasonally high level of activity in the Swedish krona market this week with a tap of its 2019 bond on Friday.