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Sub-sovereigns

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◆ No book update for €500m no-grow deal ◆ Surprising lack of demand for defensive trade ◆ Investors continue to cherry pick in big week for supply
◆ Spread to Land Hessen key to pricing ◆ Leads thought long and hard on whether to tighten ◆ 1bp move the right amount as book grew
◆ Three German states brought a new Joint Länder bond ◆ No book update, KfW curve guides pricing ◆ Flemish Community prints new 15 year
Second digital project won’t be the issuer’s last, Länder peers may be ‘interested and willing’ to join in
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  • SSA
    A German region managed to raise €500m via a tap and a supranational is lining up a euro deal, despite the Greek debt crisis limiting benchmark opportunities in the currency.
  • SSA
    The depth of the dollar market for public sector borrowers was showcased by a trio of deals this week, as even those that aimed for tight pricing rather than size overshot volume targets.
  • SSA
    A pair of public sector borrowers were able to place larger than planned dollar benchmarks on Thursday.
  • The Flemish Community of Belgium has hit the market with a quartet of private medium term notes — a rare appearance from a public sector borrower in the currency this week.
  • The Mongolian sovereign has issued its debut dim sum bond — the first from a non-Chinese Asian sovereign — raking in Rmb1bn ($161.1m) from a three year offering. The move saw strong support from the issuer’s Chinese neighbours and ended up becoming the largest high yield issue in the offshore renminbi market so far this year.
  • The Belgian city of Mechelen returned to the capital markets with a pair of private medium term notes, amid a flow of investor-driven MTNs from Belgian sub-sovereigns. And there is more to come, as issuers look to lock in cheap funding.