Nederlandse Waterschapsbank

A pair of issuers raised €3bn at the mid to long end of the curve on Tuesday, ahead of potential volatility at the end of the week caused by central bank meetings, US holidays and data releases.

Bank Nederlandse Gemeenten (BNG) may lead a small handful of issuers looking to print deals before investors pack their buckets and spades and head to the beach for the summer. The Dutch agency joins its compatriot Nederlandse Waterschapsbank (NWB) among the names that may well access public markets before August.

SSA bankers predicted that the week’s new issue supply could be confined to sovereign borrowers, as the volatility which engulfed markets late last week shows little sign of abating.

This week's funding scorecard focuses on some of Europe's key supranational and agency borrowers. Forthcoming editions will bring updates from other French, German, Spanish and Scandinavian names.

Bank Nederlandse Gemeenten is looking to diversify its short term funding sources with a new US commercial paper programme, the agency told SSA Markets this week.

Export Development Canada (EDC) sold five year Kangaroo debt on Tuesday, attracting strong interest from central banks and bank treasuries. The deal reassured syndicate bankers that demand is strong in the currency despite falling yields. The deal is expected to be followed by taps of 10 year debt from the Nordic Investment Bank (NIB) and Rentenbank on Wednesday.

The Inter-American Development Bank (IADB) and Nederlands Waterschapsbank (NWB) both sold 10 year bonds on Thursday, ending a brief quiet spell in the maturity for Kangaroo debt.

Nederlandse Waterschapsbank made a storming start to a new investor diversification play as it printed nearly $2bn of US commercial paper over its first two days of business.

Nederlandse Waterschapsbank sold its first three year dollar trade since 2011 on Tuesday, pricing a $1bn note that paid a premium of just 1bp-2bp over its curve, according to the leads.

Europe’s sovereign, supranational and agency markets balked over a bailout package for troubled eurozone sovereign nation Cyprus on Monday, but market participants were confident that supply would get back on track once the surprise news was digested. This was backed up by Nederlandse Waterschapsbank announcing a dollar mandate on Monday afternoon [see separate story].

Nederlandse Waterschapsbank mandated three banks to run a three year dollar deal on Monday, thumbing its nose at any volatility caused by a bailout package for Cyprus announced at the weekend [see separate story].

Nederlandse Waterschapsbank is likely to issue a three year next week to capitalise on strong demand from reserve managers and bank treasuries for short dated dollar assets. The appetite for three year dollars was unabated on Wednesday with FMS Wertmanagement receiving $2.6bn of orders for a $2bn deal in just under two hours of formal bookbuilding, and this despite $4.5bn of similar supply from the Bank of England and Asian Development Bank in the past two days.