KfW

Three public sector borrowers tapped the sterling market this week in a late spurt of issuance driven by the basis swap and a move in outright yields and, with 2017 brimming with political risks, borrowers might be advised to look for opportunities in the currency next year.

The public sector market is awaiting the final big event of 2016 in the shape of the US Federal Reserve’s rate decision later on Wednesday. But while a US rate rise looks all but a certainty, some funding officials are anxious about the potential for volatility in the dollar market next year from a different source — politics.

KfW tapped a December 2019 sterling line on Tuesday, printing £200m to round off the agency's strongest year in sterling since 2008.

On the day that KfW released its funding target for 2017, GlobalCapital caught up with Petra Wehlert, the agency’s head of capital markets, and Alexander Liebethal, head of new issues, capital markets, to find out more about its issuance strategy for next year.

The African Development Bank printed the longest green bond in the history of the Kangaroo market this Tuesday.

KfW was able to increase from its original size target and tighten pricing on Tuesday with the first public sector dollar bond of over $1bn since the election of Donald Trump as US president.

FMO is set to raise a minimum of Skr500m ($54.25m) with a seven year sustainability bond on Tuesday, while KfW plans to bring a dollar green bond.

Oesterreichische Kontrollbank printed a Nkr500m ($59.2m) four year note on Thursday. After a month when KfW, Nordic Investment Bank and Rentenbank placed bonds in the Nokkie market, OeKB knew there were investors prepared to fund European agencies.

Oesterreichische Kontrollbank mandated Danske Bank to raise a minimum of Nkr500m ($59.2m) for a four year Nokkie note on Tuesday.

BHP Billiton’s partnership with the IFC for the world’s first ‘forests’ bond has inspired others to look at similar projects.

As the end of 2016 approaches, borrowers are turning to the green market for their remaining funding, with a pair of SSA borrowers returning to the syndicated market for socially responsible investment products on Thursday.

Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark as of Thursday's close. The source for secondary trading levels is Interactive Data.