World Bank

The World Bank’s return to the benchmark dollar market on Wednesday after a year’s absence is a tale of two fortunes. The borrower is set to price a three and a 10 year deal in a double tranche pricing seeing solid demand in the shorter deal but underwhelming with size in the longer trade.

BNP Paribas, Goldman Sachs, HSBC and JPMorgan have been mandated for a two tranche dollar deal by the World Bank. The deal will be priced tomorrow.

The World Bank priced its first syndicated trade of the year on Tuesday, plumping for a five year Australian dollar deal in Kangaroo format. The bond follows KfW’s largest ever Aussie last week, also a five year. A shallow yield curve and favourable basis swap are contributing towards the depth of demand for five year Aussie deals.

The World Bank opened its funding for the year on Thursday afternoon, tapping three year Mexican peso bonds. The trade came in response to high investor demand for the agency’s outstanding debt in the currency.

The Inter-American Investment Corporation (IIC) has mandated four banks for its debut offering which will be a dollar-denominated floating rate note.

The European Investment Bank (EIB) and the World Bank both jumped into the Russian rouble market on Wednesday to capitalise on the recent strong flows of non-domestic demand for high quality SSA names in the high yielding currency.

World Bank is eyeing up sterling investors in a bid to further diversify an already broad investor base. The Washington supranational revealed its plans after printing a £50m two year privately placed MTN on Monday.

World Bank raised eyebrows among MTN dealers as it printed its first sterling floating rate note in 20 years on Monday. Commercial paper issuers have also been busy in the currency this week.

The World Bank found yet more demand for a 6.25% July 2014 Russian rouble line on September 14, allowing it to print a Rb425m ($13.9m) increase of a Rb750m tap it priced the previous Tuesday. The line now stands at Rb5bn.

The World Bank and KfW capitalised on strong momentum in the Russian rouble Eurobond market to tap an existing line and print a new issue, respectively.

With a large NZ$500m redemption due on Thursday, International Finance Corp (IFC) entered the Kauri market on Monday pricing a new NZ$300m ($242.55m) 3.5% five year line – a tenor that has dominated SSA issuance this summer.

The World Bank returned to the Mexican peso market for the second time this year when it priced a MP800m ($60.9m) two year trade on Tuesday, which it increased by a further MP200m the following day.