KommuneKredit

Japan Bank for International Co-operation (JBIC) was set to become the first issuer to access 10 year dollars since February and the first to print a five year benchmark in over a month on Tuesday. The issuer’s reward for paying a decent new issue premium was strong demand. JBIC was joined in the dollar market that day by KommuneKredit, came with a three year.

A pair of issuers were collecting indications of interest for dollar benchmarks on Monday afternoon. Japan Bank for International Cooperation (JBIC) was in the market with a government guaranteed dual tranche issue that will test market depth at the long end of the curve. Kommunekredit, meanwhile, stuck to a tried and tested shorter maturity.

KommuneKredit sold its debut sterling MTN last week, following a protracted period of reverse enquiries. The issuer has long been a sought after name by sterling investors but has held back on printing a deal until the levels on offer were in line with its with euro and dollar pricing.

The Inter-American Development Bank (IADB) and the Asian Development Bank (ADB) are set to answer the burning question in the SSA dollar market on Tuesday as they attempt to find the price at which the apparently rampant appetite for SSA dollar paper extends to tightly priced supranational credits.

Several supranational borrowers are eyeing dollar issuance after a blockbuster start to the market this week, SSA Markets understands. Denmark’s KommuneKredit capped off a week of oversubscribed trades from Libor plus issuers when it sold its first ever five year.

KommuneKredit became on Thursday the third borrower this week to issue a five year dollar trade following successes from the EIB and KBN. But no matter how the Danish agency fares, it will face a tough task snatching the glory away from KfW’s 10 year blowout which was priced on Wednesday.

Nordic municipal financing agencies are targeting sterling issuance in 2013, having held their first joint roadshow to meet the sterling investor base last week.

KommuneKredit will use privately placed euro medium term notes and Uridashi to raise the remaining €500m of its funding target for 2012.

Tight swap spreads ticked even tighter on Friday, a day after the Federal Reserve unveiled QE3. The swap will make it hard for sub-Libor issuers to offer an attractive spread over Treasuries.