Rentenbank

Ahead of an expected flood of issuance kicking off in the last week of August, here are the updated funding scores for selected European supranational and agency borrowers.

A golden opportunity to lock in cheap duration funding over the summer may go begging if SSA borrowers ignore the Kangaroo market, said senior SSA bankers. A growing bid from Japan for long-dated paper and the biggest month for Kangaroo bond redemptions since 2011 is set to leave a bumper bundle of cash looking for a place to be invested.

Syndicate bankers are predicting a lively August for the Kangaroo market, with a high volume of redemptions freeing up investor cash and a stabilising currency buoying sentiment. Rentenbank was the first SSA name to move this week, tapping January 2023 notes on Tuesday. Kommunalbanken has also mandated banks for a tap of 10 year debt, expected to be priced on Wednesday.

Rentenbank, which priced a $200m tap of its June 2018 floating rate notes on Monday afternoon, is open to tapping existing issues maturing between two years and 10 years time over the summer, provided the price is right. Australian dollars is one of the currencies it could be active in, according to Stefan Goebel, head of treasury at the agricultural development agency.

Export Development Canada (EDC) sold its first sterling bond of the year on Thursday, placing a three year note. The issuer was able to increase the deal beyond its minimum size even with a volatile sterling market on Thursday morning.

Bank Nederlandse Gemeenten (BNG) may lead a small handful of issuers looking to print deals before investors pack their buckets and spades and head to the beach for the summer. The Dutch agency joins its compatriot Nederlandse Waterschapsbank (NWB) among the names that may well access public markets before August.

Rentenbank tapped seven year floating rate debt on Thursday afternoon, selling euro-denominated paper for just the second time this year. The issuer plans to round out its funding in the second half of this year with both euro and dollar benchmarks, as well as accessing a variety of niche currencies.

This week's funding scorecard focuses on some of Europe's key supranational and agency borrowers. Forthcoming editions will bring updates from other French, German, Spanish and Scandinavian names.

Export Development Canada (EDC) sold five year Kangaroo debt on Tuesday, attracting strong interest from central banks and bank treasuries. The deal reassured syndicate bankers that demand is strong in the currency despite falling yields. The deal is expected to be followed by taps of 10 year debt from the Nordic Investment Bank (NIB) and Rentenbank on Wednesday.

Bank Nederlandse Gemeenten (BNG) sold its first Norwegian krone bond in around a year on Wednesday, responding to investor interest generated by an upcoming redemption. The issuer follows Rentenbank, which sold its own new krone line on Tuesday.

Rentenbank returned to the Australian dollar market on Tuesday, selling a tap of 10 year debt. The deal saw good demand from Japanese investors prompted to look abroad by the low yields on government debt.

Rentenbank has mandated banks for a tap of 10 year Australian dollar debt, which is expected to be priced on Tuesday. The deal adds to a busy year so far from Rentenbank in Australian dollars, with the currency amounting to almost a third of the issuer’s borrowing so far.