Icelandic renewable-energy company Landsvirkjun sold its first bonds without a government guarantee this week and is keeping an eye out for further opportunities to build its unguaranteed presence.

Euro funding agencies found their sterling commercial paper in heavy demand this week, as a favourable euro/sterling basis swap helped the issuers print £2.7bn by 12pm London time on Thursday — adding to what has already been a record breaking year for public sector borrowers in the currency.

Zambia is set to become the latest country to benefit from Washington supranationals’ diversification into local and offshore African currencies, after the International Finance Corporation became the first foreign issuer to be approved to place Zambian kwacha bonds on the domestic market. Meanwhile, the World Bank returned to the Ugandan shilling market.

European Investment Bank on Wednesday sold a Climate Awareness Bond in Swedish krona, privately placing a seven year floating rate note. Climate awareness bonds are becoming popular with Swedish buyers, who have been providing an increasing share of the investor base of such issues.

KfW is looking for more non-core currency opportunities after returning to the Swedish krona market for the first time in a year this week. But dealers said it might struggle as investors attempt to adapt to a “new normal” on pricing.

European sovereigns and agencies have been enjoying heavy demand for dollar private placements in a variety of formats this week — and this is expected to last over the coming months.

The Kingdoms of the Netherlands and Sweden are looking towards the money markets to tackle increased funding requirements for 2013.

Medium term note dealers had two reasons to celebrate this week as one sovereign issuer showed it was keen to increase its flexibility while another launched a new programme.

French, Spanish and Irish yields rose sharply at auctions on Thursday, after the US Federal Reserve unveiled plans for an exit from its quantitative easing programme.

The Republic of Latvia has become the latest issuer to enter the warm embrace of a medium term note programme. With central and eastern European credits offering an enticing prospect for private placement investors, other countries from the region should follow suit.

The Republic of Latvia is set to take a more sophisticated approach to the capital markets after launching a new global medium term note programme.

Privately placed euro medium term notes from SSAs are down on last year amid buoyant demand for public deals. But there are still opportunities in an evolving market, as investors and issuers remain flexible, new names launch programmes and traditional euro commercial paper buyers pick up longer dated EMTNs, reports Craig McGlashan.