Nederlandse Waterschapsbank

Public sector benchmark issuance snapped back after extreme volatility in credit and equity markets early this week, but bankers are concerned about the depth of demand in the currency.

Nederlandse Waterschapsbank, which raised $600m at the short end of the dollar curve on Thursday, is considering the currency for its next green effort.

The European Financial Stability Facility is set to create a new pricing benchmark on Tuesday — but the latest Greek worries could make conditions turbulent.

Nederlandse Waterschapsbank drew strong demand for its longest ever dollar benchmark on Thursday, after it joined Inter-American Development Bank in the seven year part of the curve this week.

A Dutch agency has mandated for a seven year dollar benchmark, following a deal from Inter-American Development Bank in the same tenor that drew strong demand.

A Dutch agency picked up £250m on Wednesday with its first visit to the sterling market in nearly a year.

Sovereign, supranational and agency Kangaroo issuance in 2015 so far reached over A$4bn ($3.3bn) this week, topping volumes in the format for the whole of January 2014. The news comes as Nederlandse Waterschapsbank announced a new Kangaroo line and KfW reopened a five year bond in the currency.

Read on to see how selected benchmarks are faring in secondary. Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark as of Thursday's close. The source for secondary trading levels is Interactive Data.

Nederlandse Waterschapsbank is set to sell a $1.5bn three year benchmark at the tight end of initial price thoughts — a level through its curve, according to one of the leads. Finnvera priced a straight five year having revised its maturity from a January 2020 announced on Monday.

Nederlandse Waterschapsbank and Finnvera are looking to pick up dollars in the short end to belly of the curve this week. Several other issuers are understood to be eyeing issuance in the currency to take advantage of strong demand.

A pair of mandates woke the SSA market on Tuesday following a sleepy summer for benchmark supply. FMS Wertmanagement is set to come in dollars and there will be euro supply from the Finnish sovereign — which also plans to sell a dollar benchmark later in the year.

SRI bonds have come a long way over the last 18 months, going from a somewhat esoteric asset class to being a must-issue for any agency that wants to show its commitment to green or ethical causes. But the level of demand on offer for NWB’s deal showcases how powerful the green label can be for investors.