KfW

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.

Transport for London (TfL) was set to print its first bond since 2006 on Thursday afternoon — a £500m 30 year print that the issuer was able to increase from the original minimum size of £300m.

While the Kangaroo market awaits a much-rumoured return of Washington supranationals as soon as next week spurred by the Asian Development Bank’s A$1.1bn ($1.1bn) blowout priced on June 26, KfW once again proved to be one of the most resilient Kangaroo borrowers when it priced a A$300m tap of its 6% 2016s on Wednesday.