IFR 03.21.2020

In addition, the EIB president Werner

Hoyer has called for member states to set up

AûhSIGNIlCANTûANDûSCALABLEvûADDITIONALû

guarantee for the EIB and national

DEVELOPMENTûBANKSûhTOûENSUREûTHATûACCESSûTOû

lNANCEûFORû3-%SûANDûMID

CAPSûREMAINSû

open”.

“The guarantee would offer a pan-

European solution of credible size and [be]

usable immediately. This would help

reassure markets and citizens at this time of

unprecedented uncertainty.”

The EBRD has announced an “emergency

solidarity package”. Limited to existing

CLIENTSûITûWILLûPROVIDEûANûINITIALûõBNûOFû

emergency liquidity, working capital and

TRADEûlNANCEû)TûSTANDSûREADYûTOûEXPANDûTHISû

“resilience framework”.

The supranational expects economic

output to be affected across its regions of

operations – especially in Central Asia.

Countries that are highly integrated into

global supply chains, especially those

directly dependent on China and Europe,

AREûLIKELYûTOûSUFFERûMOSTûFROMûTHEûVIRUSû4HEû

tourism industry is likely to be affected in

many of its countries, the EBRD added.

The ESM will explore ways of deploying

its €410bn of unused borrowing capacity to

support euro area economies, managing

director Klaus Regling said.

h7EûHAVEûAûNUMBERûOFûFACILITIESûANDû

SEVERALûOFûTHEMûHAVEûNEVERûBEENûUSEDû3OûWEû

will think, and we could do that with the

Commission, whether and how these

facilities could be useful under current

circumstances,” Regling said, noting that

THEû%3-SûUNUSEDûCAPACITYûISûEQUIVALENTûTOû

around 3.4% of euro area GDP.

Regling argued that the situation is

DIFFERENTûFROMûTHEûSOVEREIGNûDEBTûCRISISûTHATû

led to the ESM’s creation – not least as all of

ITSûMEMBERûSTATESûSTILLûHAVEûMARKETûACCESSû

unlike in 2010–12.

“I don’t think it’s a question of expanding

THEûROLEûOFû%3-ûBECAUSEûWEûDOûHAVEûOURû

UNUSEDûLENDINGûCAPACITYû!NDûWEûDOûHAVEû

our instruments, our toolbox. And most of

THOSEûHAVEûNOTûBEENûUSEDûINûTHEûPASTûû7Eû

were asked, rightly so, by the Eurogroup, to

look at what we can do, how we can

CONTRIBUTEûUNDERûTHESEûVERYûDIFFERENTû

circumstances, and that’s what we will do.”

Greece – a key recipient of past ESM

lending – is struggling with the combined

CHALLENGEûOFûBOTHûTHEûCORONAVIRUSûANDû

migrants seeking to enter the EU through

the country, Regling noted. He described the

GOVERNMENTSûCOMMITMENTûTOûREFORMûASû

“encouraging”, but said nothing about new

ESM lending to Greece.

(OWEVERû'REEKûGOVERNMENTûBONDSûWILLû

be eligible for the ECB’s new Pandemic

Emergency Purchase Programme, which

was announced on March 18.

“[In] close coordination with the banking

sector,” KfW “will be the principal institution

to implement the third pillar” of Germany’s

FOURûNATIONALûCORONAVIRUSûINITIATIVESûTHEû

agency said. This is ‘liquidity aid for

companies through additional loan facilities’.

First, it will expand three existing

programmes to ease companies’ access to

loans. These comprise ‘KfW-

Unternehmerkredit’, ‘ERP-Gruenderkredit’

and ‘KfW Kredit fuer Wachstum’.

Second, it will launch at least two special

loan programmes for companies facing

ECONOMICûDIFlCULTIESûFROMûTHEûCRISISû4HEû

agency has not yet stated the likely size of

these facilities or the impact on its €75bn

borrowing programme for this year (of

which it has completed €23.4bn so far).

“The coming weeks and months will show

how great the demand for the additional loan

facilities will be,” a spokesperson said. “On

this basis, KfW will determine any necessary

ADJUSTMENTSûTOûTHEûRElNANCINGûVOLUMEûINû

debt capital markets for 2020.

h+F7ûWILLûPROVIDEûREGULARûINFORMATIONû

both on commitments and disbursements

under the additional loan facilities, as well

as on adjustments to its funding

programme. Currently, no adjustment to

the funding programme has been made.”

STERLING

GILT PLAYERS LOOK LONGER AS

UK DMO SEEKS MORE

5NDETERREDûBYûTHEûCORONAVIRUSûALLûBUTû

closing primary markets, Gilt players are

focusing on longer-dated debt as the UK

GOVERNMENTûLOOKSûTOûUPûITSûBONDûSALES

The DMO raised £2bn from an auction of

THEûûûONû4UESDAYûMORNINGû4HEû

offering followed a consultation with

INVESTORSûANDû'%--SûONû-ONDAYûATûWHICHû

both groups recommended a reopening of

THEûûûFORûTHEûNEXTûSYNDICATION

OVERSUBSCRIBED 2049

4HEûûAUCTIONûATTRACTEDûaBNûOFû

DEMANDûFORûAûBID

TO

COVERûOFûû!LTHOUGHû

THATûWASûBETTERûTHANûATûTHEûPREVIOUSûTAPSûINû

.OVEMBERûANDû$ECEMBERûTHEûAUCTIONûALSOû

produced an unusually large tail of 1.8bp.

Apart from an exceptional 5.1bp on a

ûSALEûINû.OVEMBERûûITûWASûTHEû

LARGESTûTAILûINûNEARLYûFOURûYEARSûnûSINCEûBPû

ONûAûûINû*ULYûû$-/ûDATAûSHOW

Demand for shorter-dated debt was tested

on Thursday with a £3.25bn tap of the

ûûWHICHûCONCLUDEDûTHEû$-/Sû

ûREMITû4HEûTAPûWASûEXECUTEDûWITHûANû

AVERAGEûYIELDûOFûûAûBID

TO

COVERûOFû

ûTIMESûANDûAûTAILûOFûBP

The 2020/21 remit then begins with a tap

of the 1.25% 2041 on April 2.

2054 IN FOCUS

The DMO’s bimonthly consultation with

INVESTORSûANDûMARKET

MAKERSûCENTREDûONû

AUCTIONSûANDûSYNDICATIONSûINûTHEûlRSTû

quarter of its 2020/21 remit. While a mid-

-AYûOFFERINGûOFûTHEûûûWASûBOTHû

groups’ preference for the next syndication,

INVESTORSûALSOûSUGGESTEDûAûNEWû'ILTûINûAû

nûMATURITYû3OMEûDEALERSûALSOû

suggested a new 30-year.

International Financing Review March 21 2020 27

BONDS SSAR

ALL US DOLLAR FIXED-RATE GLOBALS

BOOKRUNNERS: 1/1/2020 TO DATE

Managing No of Total Share

bank or group issues US$(m) (%)

Excluding equity-related debt, ABS/MBS.

Source: Refinitiv SDC code: O5

1 Citigroup 44 15,106.30 9.9

2 JP Morgan 44 13,358.18 8.8

3 BofA Securities 48 12,017.50 7.9

4 Goldman Sachs 28 10,065.11 6.6

5 Barclays 24 9,693.61 6.4

6 Morgan Stanley 21 9,629.40 6.3

7 Wells Fargo 29 8,031.08 5.3

8 TD Securities 18 7,431.02 4.9

9 Deutsche Bank 20 6,384.85 4.2

10 HSBC 13 5,370.32 3.5

Total 96 152,167.81

ALL INTERNATIONAL US$ BONDS

BOOKRUNNERS: 1/1/2020 TO DATE

Managing No of Total Share

bank or group issues US$(m) (%)

Including Euro, foreign and global issues. Excluding equity-related debt,

US Global ABS/MBS.

Source: Refinitiv SDC code: O1

1 JP Morgan 189 45,845.94 9.1

2 Citigroup 173 40,371.18 8.0

3 BofA Securities 156 35,415.77 7.0

4 Barclays 125 33,264.36 6.6

5 Morgan Stanley 93 30,506.47 6.0

6 Goldman Sachs 121 29,739.77 5.9

7 Wells Fargo 83 21,525.41 4.3

8 Deutsche Bank 102 18,697.99 3.7

9 HSBC 99 16,872.00 3.3

10 RBC 62 14,427.77 2.9

Total 588 505,627.37

ALL SOVEREIGN BONDS IN EUROS

BOOKRUNNERS: 1/1/2020 TO DATE

Managing No of Total Share

bank or group issues €(m) (%)

Excluding ABS/MBS.

Source: Refinitiv SDC code: N4

1 JP Morgan 13 9,484.52 11.9

2 BNP Paribas 11 7,448.74 9.3

3 Citigroup 9 6,838.46 8.6

4 SG 6 5,899.53 7.4

5 Goldman Sachs 8 5,306.30 6.6

6 HSBC 7 4,978.31 6.2

7 Credit Agricole 4 4,412.84 5.5

8 Barclays 7 3,677.29 4.6

9 Nomura 3 3,447.15 4.3

10 Santander 4 3,385.77 4.2

Total 27 79,852.58

6 IFR Bonds 2325 p 23 - 45 .indd 27 20 / 03 / 2020 19 : 59 : 39