SSAs have had their best year in non-core issuance since 2012. SSA issuance (excluding euros, dollars and sterling) is up $3.83bn year on year to $82.95bn year to date. Much of this borrowing — some $32.8bn, according to Dealogic — has come through the MTN market.
Dim sum MTN issuance from SSAs reached a record high in 2019, and the growth is set to continue next year. The renminbi’s inclusion in the IMF’s special drawing rights (SDR) basket and global bond indices will ensure growing appetite for the instrument, according to one MTN desk head.
Two French public sector agencies have closed their borrowing programmes for the year below their planned size, with one agency cutting short its funding by almost a third.
The International Finance Corporation returned to the Czech koruna bond market after a 21 year absence this week to place the largest SSA deal in the currency since 2015.
The European Union felt it paid little over its benchmark curve for a €150m medium term note (MTN) that will finance the last of three disbursements to Tunisia.
The European Union sent round a request for proposals (RFP) on Tuesday to dealers ahead of a €150m 15 year trade, following on from the EU’s €20m return to the MTN market last month.
Finnish agency Municipality Finance has faced a decline in callable MTN issuance this year as investors shun the format and move “more and more towards benchmarks with greater liquidity”, according to funding manager Martin Svedholm.