European Bank for Reconstruction and Development EBRD

Supranationals are making the most of demand in Romanian lei, picking up short dated funding in the currency.

Public sector bankers lined up to laud a new SSA borrower this week, as the International Development Association (IDA) surpassed expectations on its bond debut. Now, many are eager to see the its next move, with many anticipating a Washington supranational with greater currency flexibility, writes Craig McGlashan.

The European Bank for Reconstruction and Development on Thursday achieved what on-looking bankers called a “fantastic” result as it sold its largest ever deal and matched the lowest spread on a three year dollar benchmark of the year so far — despite tightening swap spreads.

The European Bank for Reconstruction and Development (EBRD) has introduced a new theme to the market for socially responsible investments, printing a “health bond” in Polish zloty on Tuesday.

The European Bank for Reconstruction and Development (EBRD) has introduced a new theme to market for socially responsible investments, printing a “health bond” in Polish zloty.

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Public sector borrowers hit new mid-swap spread tights for the year in dollars this week, but despite the enviable pricing on offer, bankers said that the currency was not offering the kind of super strong conditions that had been on offer last year. That might play in the mind of issuers lining up deals for next week — which is expected to be busy — with bankers saying borrowers might need to offer a little more concession than they have been used to.

Yapi Kredi has privately placed Turkish mortgage backed covered bonds to the European Bank for Reconstruction and Development (EBRD) and Clean Technology Fund (CTF) to promote energy saving improvements in the financial sector.

The European Bank for Reconstruction and Development set a new pricing bar for 2018 in five year dollars on Wednesday as it equalled its largest ever dollar benchmark size. Municipality Finance was also out in the same tenor, with a trade that leads said had a concession of 2bp-3bp.

FMS Wertmanagement on Tuesday took advantage of widening swap spreads to equal the tightest spread to mid-swaps on a five year benchmark so far this year — a level that was “very tight” to KfW, said bankers on the trade. Two other borrowers are lining up to try their luck in the tenor — including one that is aiming for an even tighter spread.

The Turkish lira’s value has been battered by a chaotic political and economic backdrop but, with yields at their highest level since 2007, some MTN investors are opting to take the plunge.

The nascent social bond market is keeping the primary public sector debt market ticking over as the end of the year approaches. Demand for the new asset class is swelling, and investors are beginning to make their preferences known.