Rentenbank

A pair of German agencies mandated for euro benchmarks this week ahead of an expected 10 year syndication from the European Stability Mechanism.

Read this week's funding scorecard to see which European supranationals and agencies are nearly done for the year, and which have room for another benchmark.

Rentenbank and the Inter-American Development Bank both sold Kangaroo debt on Wednesday, with Renten pricing long 10 year bonds and IADB choosing to sell five year debt. Both deals hit their minimum targets, but were unable to grow beyond that level with many investors waiting on the sidelines ahead of an anticipated increase in yields.

Plenty of SSA issuers took a big bite out of their funding targets in the short window of issuance between the end of the summer and this week's FOMC meeting. Here we provide updated figures on selected European supranationals and agencies.

Rentenbank has made its first foray into the world of socially responsible securities, printing a €50m seven year renewable energy bond on Monday — and declaring itself open for more.

Ahead of an expected flood of issuance kicking off in the last week of August, here are the updated funding scores for selected European supranational and agency borrowers.

A golden opportunity to lock in cheap duration funding over the summer may go begging if SSA borrowers ignore the Kangaroo market, said senior SSA bankers. A growing bid from Japan for long-dated paper and the biggest month for Kangaroo bond redemptions since 2011 is set to leave a bumper bundle of cash looking for a place to be invested.

Syndicate bankers are predicting a lively August for the Kangaroo market, with a high volume of redemptions freeing up investor cash and a stabilising currency buoying sentiment. Rentenbank was the first SSA name to move this week, tapping January 2023 notes on Tuesday. Kommunalbanken has also mandated banks for a tap of 10 year debt, expected to be priced on Wednesday.

Rentenbank, which priced a $200m tap of its June 2018 floating rate notes on Monday afternoon, is open to tapping existing issues maturing between two years and 10 years time over the summer, provided the price is right. Australian dollars is one of the currencies it could be active in, according to Stefan Goebel, head of treasury at the agricultural development agency.

Export Development Canada (EDC) sold its first sterling bond of the year on Thursday, placing a three year note. The issuer was able to increase the deal beyond its minimum size even with a volatile sterling market on Thursday morning.

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.

Rentenbank tapped seven year floating rate debt on Thursday afternoon, selling euro-denominated paper for just the second time this year. The issuer plans to round out its funding in the second half of this year with both euro and dollar benchmarks, as well as accessing a variety of niche currencies.