Rentenbank

Rentenbank is set to price a four year Kauri bond this week, the latest in a spate of issuance in the format. Kommunalbanken has also seized on investor demand for antipodean currencies, pricing a tap of nine year Kangaroo bonds on Wednesday.

The Nordic Investment Bank has mandated banks for a five year Kangaroo deal, its first new line in the currency since July 2012. Rentenbank also tapped its 10 year debt, benefiting from the currency’s steep yield curve.

Rentenbank priced its first new Kangaroo line of 2013 on Thursday — a 10 year deal. The healthy yield on offer sparked interest from offshore investors, and suggests that there is room for further issuance in Australian dollars at the far end of the curve.

Rentenbank is considering rounding out its funding for the year with taps of outstanding dollar and Australian dollar notes. It is eyeing an increase of its 2022 Kangaroo notes or a tap of a dollar issue.

Rentenbank was set to price on Tuesday afternoon what is likely to be its last dollar global before it receives an explicit government guarantee from Germany. The deal was a complete blow out and looks set to be priced on top of fellow German agency KfW’s secondary curve, according to the leads.

Rentenbank reopened the benchmark market for SSA borrowers on Monday with the first of a possible quartet of dollar trades that bankers expect to see in the near future.

German development banks are mulling dollar issues before the end of the year, SSA Markets understands. Rentenbank is likely to come with a trade this week or next, while NRW.Bank will consider a dollar benchmark before the end of the year if the euro/dollar basis is favourable enough.

Rentenbank priced its first new dollar deal in a year on Wednesday which attracted a large order book, tightened in secondary markets, and looks set to tighten even further once the German parliament approves the borrower's new explicit sovereign guarantee.

A number of borrowers announced benchmark mandates in the dollar markets following Monday’s Labor Day holiday.

A queue of SSA issuers is forming to take advantage of an under supplied dollar market with a flood of supply in September, according to bankers. Although tight spreads and low yields will make conditions tough for the very best credits in shorter dates, duration and cheaper names should be able to take advantage of a hungry investor base.

Germany plans to give Rentenbank an explicit and direct guarantee, putting the issuer on a par with KfW. Renten’s secondary levels will tighten as a result, but it won’t threaten KfW’s status in capital markets, said market participants.

Rentenbank tapped an eight year Kangaroo bond on Friday, rounding off an already busy week for Aussie dollars. However, the deal failed to reach full subscription at the time of pricing.