Asian Development Bank ADB

Public sector bond market participants are growing increasingly frustrated at the pace of the implementation of Ester, the alternative euro risk-free rate to replace Euribor. Borrowers are unable to plan for, let alone issue, a bond linked to the benchmark without the rate being published by the European Central Bank. That leaves the euro far behind other markets where Libor is being replaced, writes Burhan Khadbai.

Asian Development Bank was aggressive with the pricing of its inaugural Sonia-linked floater on Tuesday by offering no new issue premium, according to SSA bankers. Nevertheless, the supranational was able to attract more than ample interest, allowing it to increase the size of the deal.

Asian Development Bank is set to become the third supranational to issue a Sonia-linked floater, after mandating banks on Monday for a new five year.

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Signs emerged in the SSA market this week that not all SRI bonds are equally worthwhile as far as investors are concerned, particularly when market conditions are not ideal. A series of bonds with a green label went through with little difficulty but a pair of social bonds were undersubscribed. Craig McGlashan reports.

More supranational banks will use synthetic securitization and other risk transfer techniques, specialists believe, after the African Development Bank’s trailblazing $1bn deal, revealed this week, writes Jon Hay.

Dollar investors gave public sector issuers something to think about on Wednesday, as a pair of SRI bonds had very different receptions. One aggressively priced deal struggled to reach full subscription while another offering some concession grew by a half. World Bank is up next in the currency, though in conventional format, and bankers believe the trade will indicate the market’s direction.

Public sector borrowers were able to tighten pricing and achieve well oversubscribed books for socially responsible investment bonds on Tuesday, as investors took advantage of the flood of issuance in the sector. The momentum is likely to continue with more deals expected over the coming weeks, according to SSA bankers.

The Asian Development Bank hit screens for a new 10 year green bond on Tuesday, an area of the dollar curve that has seen only a handful of trades in 2018.

Cambodian microfinance institution Hattha Kaksekar (HKL) is poised to sell the country’s first bond later this year.

The Asian Development Bank mandated banks for a new seven year sterling benchmark on Thursday, as issuers pile into the maturity amid strong bank treasury demand.

Asian Development Bank has become the second ever borrower to sell Armenian dram denominated paper.