Rentenbank

A new explicit guarantee from the German government propelled Rentenbank’s first dollar benchmark of the year to success on Wednesday. The German agency was able to price around flat to KfW, a feat that bankers involved with the trade attributed to the new guarantee.

Rentenbank and World Bank are set to sell dollar benchmarks on Wednesday, building on a successful three year trade from Bank Nederlandse Gemeenten the day before. The Dutch agency was able to sell an oversubscribed trade in spite of clashing with a public holiday in Japan.

Eurofima opened books on its first Australian dollar deal in 18 months on Monday, attracted by the Kangaroo market’s receptiveness to small trades. Kommunalbanken is also set to price a 10 year tap in the format, with more issuers expected to follow later in the week.

More issuers could look at the Kauri market in coming weeks following the rousing success of Export Development Canada’s deal in the format on Friday, syndicate bankers predict. Kauri bonds are enjoying a strong bid from international investors, with Asian central banks leading the way.

Export Development Canada is set to sell the first Kauri bond of the year on Friday. A strong bid from central banks for the five year paper has the leads confident of surpassing the issuer’s size goals, getting the Kauri market off to a strong start following a record breaking 2013.

The Inter-American Development Bank and Rentenbank are both set to sell Kangaroos bonds on Thursday, looking to appeal to a receptive investor base that allowed KfW to more than double its target size with a five year trade on Wednesday.

Kommunalbanken is expected to sell the first new Kangaroo bond of 2014 on Tuesday, opting for a long 10 year deal. Long dated notes are expected to make up a greater part of Kangaroo issuance over the coming year, with 12 and 15 year syndications possible.

Rentenbank seized upon Japanese interest to tap April 2024 Kangaroo paper on Thursday. The tap pushed the deal’s size into benchmark territory, which will boost its appeal for further reopenings next year.

The Kangaroo market is expected to remain active throughout this week as Rentenbank considers a tap of long dated paper. At least two other issuers are also considering selling Aussie dollar debt, according to syndicate bankers.

Land NRW was the only issuer out with a benchmark mandate on Monday afternoon as SSA Markets went to press, but a few more issuers are waiting in the wings to pull the trigger before new issue markets begin to shut down ahead of year end.

Read this week's funding scorecard to see which European supranationals and agencies are nearly done for the year, and which have already begun prefunding.

A pair of euro benchmarks in the belly of the curve fell short of full subscription on Tuesday, as a combination of tight pricing and the arrival of the European Stability Mechanism’s second ever benchmark on the same day served to dampen investor demand.