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Sub-sovereigns

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◆ German state executes intraday trade ◆ Tenor near ‘sweet spot’ on euro curve ◆ Fair value only ‘theoretical’ in current market
SSA
Recent deals showed that investor appetite for SSA credit remains
◆ 'Accelerated execution' due to market uncertainty ◆ Popular deal spotted close to fair value ◆ Momentum accounts 'less active'
SSA
Primary market for public sector unlikely to see large transactions until after Easter, reckon bankers
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  • A difficult start to 2016 has led public markets looking subdued at best. Issuers and investors alike are turning to the private placement market to get deals done.
  • The Province of Ontario last Friday took advantage of a calm end to a volatile week, pricing its second green bond in Canadian dollars at the very tight end of guidance.
  • British Columbia became the first issuer to sell a Panda with a sub-3% coupon on Thursday as its triple-A rating assured investors who were largely unfamiliar with the credit. The Canadian province is parking the proceeds offshore after failing to get tax waiver from China regulators, picking a new bank as the home for its deposit.
  • The Chinese Panda bond market has gone from strength to strength since its revival last September with the Province of British Columbia (BC) becoming the latest to issue, raising Rmb3bn ($456m) on Thursday. While plenty more sovereign and financial deals are being lined up, the future does not look bright for red chip companies. Carrie Hong and Rev Hui report.
  • The Province of Manitoba has returned to euros early in 2016, printing €45m of 25 year paper through Scotia Capital.
  • The Province of British Columbia (BC) has announced price guidance for its upcoming Panda bond, which is set to go live on Thursday.