Germany
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Scrabble expected to sign deals before summer -
Fresh Nato commitments will test bond market capacity as major issuers reveal funding updates
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Investor relations efforts and euro demand help issuer price at ‘ambitious but not unrealistic’ level
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◆ Largest deal and book sizes ◆ Strong demand for German SSAs ◆ Fairly priced after 2bp tightening
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The loan was provided by a triumvirate of banks
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◆ First €1bn three year Länder since end-2023 ◆ Deal prices in line with recent EIB, ESM in primary ◆ Secondary spread pick-up still attracted €1.5bn book
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Market still 'hot and busy' as borrowers line up
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◆ Market's 'green light' buoys long end deal ◆ Sizeable books sticks together during pricing ◆ Attractive pick up offered to sub-sovereigns
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Further covered deals expected but demand could skew towards riskier paper
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New 10 year deal was oversubscribed as geopolitical risks intensify
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◆ Deal attracts strong real money demand ◆ Minimal drops as accounts stick with price move ◆ Low single digit premium needed
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◆ NordLB achieves price with capped size ◆ Commerzbank squeezes €750m from slim book ◆ Low single digit premiums paid
