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Sub-sovereigns

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SSA
Markets ‘not out of the woods yet’ as large sovereigns shorten execution process to de-risk issuance
Huge order book allowed the issuer to increase size of five year dollar trade
Issuer had already pre-funded in dollars earlier this year
◆ German state brings third deal of 2026 ◆ Investors appeared ‘insecure’, extra spread to KfW needed ◆ Minimal NIP paid, size target reached
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  • SSA
    Eurozone periphery sovereigns are stamping down their borrowing costs at auctions amid a wave of dovish central bank actions — but one sub-sovereign in the region stands alone in suffering a sharp rise in its yields.
  • A source on the Austrian side of negotiations concerning Heta, the State of Carinthia and the Ad Hoc Group of creditors has revealed the depth of feeling regarding a potential payout to Heta’s creditors, saying that such a payment would be “political suicide” for any politicians involved in the deal.
  • A brewing crisis over guarantees made by the southern Austrian province of Carinthia has shown little sign of resolving, with creditors drawing up parallels between the state and Argentina's spectacular default.
  • The government of Catalonia is confident that it will soon be able to complete a plan to convert some of its debt from short term to long term, a delay in which led Moody’s to place the region’s Ba2 rating on review for downgrade last week.
  • Rating: Aa1/AA-/AAA
  • SSA
    After a string of strong syndications and auctions from the eurozone periphery during the last seven days, issuers from the region could be set to enjoy even lower yields thanks to the latest monetary stimulus package from the European Central Bank.