KfW

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.

KfW stepped into niche territory on Friday to increase a Rb1bn ($30.95m) 7% four year note it issued last week, taking it to Rb2bn.

Sovereign, supranational and agency issuance planning for 2012 lay in tatters after last week’s Eurogroup summit left issuers and their advisors riddled with uncertainty. Although funding volumes are known, plans of campaign are limited to taking a wait-and-see approach as issuers face up to increased scrutiny, wider spreads and smaller deal sizes.

KfW has raised its funding volume forecasts for the rest of the year to meet demand for loans.

The continuing strength of offshore demand and the fact that public borrowers face one of the biggest ever redemptions in June has pumped up SSA momentum in Australian dollars in the last month. The latest borrowers to take advantage of these positive market conditions were KfW and the Province of Ontario, which both brought Kangaroo deals this week.

KfW priced a Eu5bn seven year benchmark on Tuesday. The German agency received orders totalling just under Eu6bn for the deal, in a book dominated by banks.

KfW printed a spate of large trades in dollars and sterling this week. Although the borrower is offering low levels at the short end, volatility surrounding the foreign exchange swap allowed investors to buy the borrower’s paper at more attractive levels.

The Australian dollar sovereign, supranational and agency sector came back to life this week with its first substantial supply since Apra’s announcement on liquid assets in February.

Banks are gearing up for the second benchmark from the European Financial Stability Facility, which has circulated a questionnaire to the EFSF Market Group ahead of a deal that is expected in the second quarter.