Bank Nederlandse Gemeenten

Bank Nederlandse Gemeenten (BNG) and the Grand Duchy of Luxembourg have both mandated banks for new benchmark deals expected to launch on Tuesday. BNG has plumped for a five year dollar deal, with Luxembourg targeting a curve extension through a 15 year euro issuance.

Bank Nederlandse Gemeenten (BNG) sold a new Kangaroo bond on Wednesday, challenging investor nervousness on European borrowers. While the issuer was forced to make concessions on its minimum targeted size, Japanese investors buoyed by a strengthening yen proved keen to buy the paper.

The International Finance Corporation (IFC) sold the largest ever Kauri bond by an SSA issuer on Tuesday, capturing a record set just a fortnight before. Activity in New Zealand dollars has also been brisk in Eurokiwi format, with investors drawn in by attractive yields compared to Australian dollars.

Bank Nederlandse Gemeenten launched its first Swiss franc trade since August on Tuesday, opting for a long 10 year bond. The issuer was able to exploit a low yield environment in the Swiss market, coupled with its popularity with investors, to put out guidance at what bankers away from the deal called aggressive levels.

The future looks set to be one of smaller but more frequent deals for supranational borrowers if Tuesday’s prints from the Inter-American and Asian Development Banks are anything to go by. Both borrowers opened books on new global format benchmarks in the morning with pricing expected later in the day. Meanwhile, Bank Nederlandse Gemeenten tested the notoriously tricky 10 year maturity following KfW’s success with a similar deal last week.

German agency, KfW on Tuesday followed Monday’s prelude from Bank Nederlandse Gemeenten with the first full orchestra euro benchmark of the year. The deal will be €5bn in size but will still be priced at the tight end of guidance.

Bank Nederlandse Gemeenten (BNG) attracted upwards of €1.8bn of orders to a long seven year note on Monday afternoon that marked the first euro benchmark of 2013. The demand was strong enough for the issuer to print with a new issue premium of just a couple of basis points.

Bank Nederlandse Gemeenten (BNG) took advantage of a favourable euro/sterling basis swap to sell its largest ever sterling denominated euro commercial paper deal on Thursday. With positive subscription data expected for sterling money market funds expected next week, dealers are hopeful that the trend will continue.

Dutch agency Bank Nederlandse Gemeenten (BNG), is taking advantage of its low funding needs to ratchet in the pricing of new debt. The agency is within spitting distance of its annual funding target, expects to have to raise even less next year and is looking for keenly priced reverse enquiries.

The European Investment Bank and Republic of Austria are considering dollars deals this week, SSA Markets understands. The deals will test demand for more expensive names in dollars, after blow-outs from a pair of European agencies and a Canadian province last week, as ultra low swap levels squeeze spreads over Treasuries.

Bank Nederlandse Gemeenten was set to price a $2.25bn five year at the tight end of guidance on Thursday afternoon, marking another blow-out for a European agency in a market where investors are falling over themselves to buy high quality credits that offer a spread over US Treasuries.

Norway’s Kommunalbanken (KBN) sold a $1.25bn five year note on Wednesday, having started out with a $1bn no grow trade. The issuer faced overwhelming demand from investors and said the deal has re-priced its dollar curve. That spurred two more borrowers into mandating deals.