World Bank

The Inter-American Development Bank (IADB) sold 10 year bonds on Friday, putting the finishing touch on a hectic week of dollar supply. Some bankers were surprised by the issuer’s choice of duration, but the deal grew smoothly and priced with a small oversubscription.

Province of Ontario is the latest issuer expected to bring a five year dollar deal next week, adding to a hefty SSA pipeline. There are also thought to be opportunities for long dated euro deals, with the Federal Reserve’s unexpected decision not to slow its asset purchasing programme causing a steepening in the euro curve.

Dollar issuance could take on a supranational and French flavour next week, if this Wednesday’s Federal Reserve Open Markets Committee meeting leaves markets in a decent state, SSA Markets understands.

The World Bank sold its debut floating rate Kangaroo bond on Friday, with strong investor demand allowing the deal to become the largest floater in the format from an SSA issuer. World Bank also tapped three year fixed rate bonds on the same day.

This week's funding scorecard focuses on some of the major supranational borrowers, some of which have just announced new funding programmes. Next Friday's scorecard will give take a look at the funding progress of several major European supranationals and agencies.

Corporacion Andina de Fomento (CAF) is preparing to sell its debut Kangaroo bond on Wednesday, opting for a three year note. The World Bank is also set to price a tap of five year Kangaroo debt on the same day, following on from a Kauri increase on Tuesday.

The World Bank is set to price a tap of five year Kauri bonds on Tuesday, continuing a busy year of New Zealand dollar issuance from supranationals and agencies. The Inter-American Development Bank also turned its gaze south this week, selling a tap of 10 year Kangaroo bonds on Monday.

Rentenbank has made its first foray into the world of socially responsible securities, printing a €50m seven year renewable energy bond on Monday — and declaring itself open for more.

The World Bank sold its largest ever Green bond on Friday, taking advantage of growing investor interest in the asset class. While the issuer had originally planned for a smaller deal by targeting specialised investors, the demand was high enough for leads to more than double the final deal size from the initial expected outcome.

This week's funding scorecard focuses on some of the major supranational borrowers, some of which have just announced new funding programmes. Next Friday's scorecard will give take a look at the funding progress of a number of European supranationals and agencies.

A golden opportunity to lock in cheap duration funding over the summer may go begging if SSA borrowers ignore the Kangaroo market, said senior SSA bankers. A growing bid from Japan for long-dated paper and the biggest month for Kangaroo bond redemptions since 2011 is set to leave a bumper bundle of cash looking for a place to be invested.

The World Bank became the latest SSA name to price a dollar floating rate bond this week, with a $500m reverse enquiry-driven print sold with Citi as sole lead manager.