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First Canadian province to visit euros in 2026
◆ Cautious start after spreads moved around ◆ KfW's spread tightens, but Länder unmoved ◆ ‘Real’ Länder-KfW spread yet to be established
German sovereign goes for conventional over green as smaller peers join a crowded Tuesday
Primary market shows strength but pockets of weakness a reminder that ‘1bp could make all the difference’
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Province of Ontario has mandated banks for its debut green bond, which is set to come to market this week.
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The Province of Ontario is attracting offshore investor interest to its green bond debut — which is set to be priced this week — despite the choice of currency meaning demand will be dominated by Canadian buyers.
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Read on to see how selected benchmarks are faring in secondary. Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark as of Thursday's close. The source for secondary trading levels is Interactive Data.
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Finnish municipality, City of Turku made a rare appearance in the capital markets on Tuesday, printing its second bond issuance of the year. It funded at a cheaper level by avoiding fees it would usually pay to fund through Finnish government lender Municipality Finance.
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Luxembourg will launch its debut sukuk next week at the earliest, according to a banker on the deal. The issuer’s prospective five year transaction could be priced flat to or even through mid-swaps, but unlike the UK’s inaugural sukuk, Luxembourg is likely to have to offer a premium to its conventional curve, leads admitted.
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Seven German regions enjoyed super tight pricing versus swaps when clubbing together for a Joint Laender deal this week. The issuers priced a no-grow €1bn September 2024 on Wednesday morning at the tightest spread to Bunds for a Joint Laender deal in more than seven years — and the tightest ever spread over mid-swaps for a 10 year.