Nederlandse Waterschapsbank

The Inter-American Development Bank (IADB) and Nederlands Waterschapsbank (NWB) both sold 10 year bonds on Thursday, ending a brief quiet spell in the maturity for Kangaroo debt.

Nederlandse Waterschapsbank made a storming start to a new investor diversification play as it printed nearly $2bn of US commercial paper over its first two days of business.

Nederlandse Waterschapsbank sold its first three year dollar trade since 2011 on Tuesday, pricing a $1bn note that paid a premium of just 1bp-2bp over its curve, according to the leads.

Europe’s sovereign, supranational and agency markets balked over a bailout package for troubled eurozone sovereign nation Cyprus on Monday, but market participants were confident that supply would get back on track once the surprise news was digested. This was backed up by Nederlandse Waterschapsbank announcing a dollar mandate on Monday afternoon [see separate story].

Nederlandse Waterschapsbank mandated three banks to run a three year dollar deal on Monday, thumbing its nose at any volatility caused by a bailout package for Cyprus announced at the weekend [see separate story].

Nederlandse Waterschapsbank is likely to issue a three year next week to capitalise on strong demand from reserve managers and bank treasuries for short dated dollar assets. The appetite for three year dollars was unabated on Wednesday with FMS Wertmanagement receiving $2.6bn of orders for a $2bn deal in just under two hours of formal bookbuilding, and this despite $4.5bn of similar supply from the Bank of England and Asian Development Bank in the past two days.

The Italian treasury has wasted no time in returning to the syndicated benchmark market this week by awarding four banks the mandate for a new bond, following a stellar opening week for SSAs. Meanwhile, the European Financial Stability Facility (EFSF) has also elected to return to the new issue market and other borrowers will not be far behind, say senior bankers.

Nederlandse Waterschapsbank (NWB) issued its first Kangaroo debt in six years on Thursday. The issuer hopes that it will be able to bring further Kangaroo bonds in 2013 on the back of investor interest in the superior yields generally on offer in Australian dollars.

Hopes that yields on callable zeros could be on an upward march after months of declines may have been dashed after 30 year dollar swap levels fell on Thursday.

Bank Nederlandse Gemeenten (BNG) priced a 10 year benchmark on Tuesday morning at a wider level than it sounded investors at a day before. The deal fell short of subscription but bankers believe investors will still welcome new issues.

Bank Nederlandse Gemeenten (BNG) is following hot on the heels of a blowout from Nederlandse Waterschapsbank (NWB), mandating four banks on Monday to run a 10 year euro trade. The leads will launch BNG’s benchmark on Tuesday morning.

Nederlandse Waterschapsbank printed a €1.5bn seven year note on Friday at the tight end of initial guidance. The deal’s reception could tempt other SSA borrowers to try benchmarks this month ahead of what could be a volatile September.