Munich Re, Swiss Re, GC Securities and AIR
Worldwide.
The bonds were issued under the World
Bank’s “capital at risk” programme. Holders
risk losing capital at maturity in July if an
epidemic triggers payouts to eligible
countries covered under the PEF.
Payouts depend on an outbreak reaching
pre-determined levels of contagion,
including number of deaths, as well as the
speed of its spread and whether it crosses
international borders. Determinations are
based on publicly available data reported by
WHO.
However, only IDA’s low-income
members are eligible. Few of IDA’s 76
borrowing countries have reported cases of
coronavirus so far. Those that have include
Afghanistan, Cambodia and Senegal (one
case each), plus Nigeria – a so-called “blend”
borrower eligible for IDA under some
circumstances.EBRD TOILS TOWARDS SOFR BENCHMARKThe EUROPEAN BANK FOR RECONSTRUCTION AND
DEVELOPMENT opted for intraday execution to
INSULATEûITSûTHREE
YEARû53ûDOLLARûmOATERû
against volatility, although a lack of investorengagement saw the issuer labour towards a
benchmark size.
EBRD began marketing at the 26bp area
over SOFR via BMO, Citigroup, Standard
Chartered and TD. A lead and banker away
SAWûTHATûASûATûLEASTûmATûTOûTHEûlXED
RATEû
curve.
“In fact it looks very much through that,”
said a banker away. “It’s a punchy level and I
think it’s what hurt the growth of the
books.”
0RICINGûmATLINEDûWITHûTHEûSPREADûSETûATû
26bp. Books were over US$400m at that
stage, although the trade subsequently
picked up additional interest, taking
demand to US$560m.
The interest, which came from 16
investors, was translated into a US$550m
size. Bank treasuries played the most active
role.
“We were very happy with being able to
price an oversubscribed SOFR FRN even
after the upsizing under current market
conditions, with very high quality accounts
participating,” said Isabelle Laurent, deputy
treasurer and head of funding at EBRD.
A second banker said when the spread
was set that the trade was looking like it
would disappoint.“That’s terrible,” he said. “They
announced a benchmark and 26bp was
reasonable. I guess when the Fed is expected
TOûDOûMOREûCUTS ûmOATING
RATEûNOTESûAREû
probably not really what you want to buy.”
!ûLEADûSAIDûTHEûRESULTûHADûBEENûhlNEv û
while the intraday execution had started
early enough to allow accounts across Asia,
Europe and the US to see the trade.
“It’s a quiet day, with people choosing to
sit on the sidelines or frankly just sitting at
home with everything going on,” he said.
“The most important thing is that the trade
is placed and the market is shown to be
liquid.”
Intraday execution was a sensible
APPROACH ûTHEûlRSTûBANKERûSAID ûGIVENûTHEû
volatility gripping the market and EBRD’s
small size target.
The EBRD was also embracing the move
towards a shift coupon convention in SOFR.
Like a US$1bn no-grow four-year from EIB
in February, EBRD’s deal will not reference
overnight rates directly. Rather it will carry
the coupon convention: “SOFR Index Start
and SOFR Index End will be 2 days prior to
Interest Period”.
The New York Fed began publishing SOFR
averages and a SOFR index from March 2.28 International Financing Review March 7 2020ALL US DOLLAR FIXED-RATE GLOBALS
BOOKRUNNERS: 1/1/2020 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)Excluding equity-related debt, ABS/MBS.
Source: Refinitiv SDC code: O51 Citigroup 32 12,647.83 9.8
2 JP Morgan 30 10,552.46 8.2
3 Goldman Sachs 21 8,037.72 6.3
4 Barclays 16 7,993.14 6.2
5 BofA 29 7,991.89 6.2
6 Morgan Stanley 16 7,806.46 6.1
7 TD Securities 16 7,206.16 5.6
8 Wells Fargo 19 6,189.99 4.8
9 Deutsche Bank 15 5,461.97 4.3
10 HSBC 9 4,368.01 3.4
Total 77 128,404.29ALL 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: O11 JP Morgan 165 39,948.13 8.8
2 Citigroup 160 37,818.56 8.4
3 BofA 135 29,352.70 6.5
4 Morgan Stanley 84 27,785.70 6.1
5 Goldman Sachs 110 26,839.69 5.9
6 Barclays 111 25,819.29 5.7
7 Wells Fargo 71 17,388.99 3.8
8 Deutsche Bank 95 17,259.01 3.8
9 HSBC 90 15,370.76 3.4
10 TD Securities 45 13,481.05 3.0
Total 512 452,110.32ALL 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: N41 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 79,852.58ALL AGENCY BONDS IN EUROS
BOOKRUNNERS: 1/1/2020 TO DATE
Managing No of Total Share
bank or group issues €(m) (%)Excluding equity-related debt. Including publicly owned institutions.
Source: Refinitiv SDC code: N61 Barclays 10 4,003.01 12.9
2 HSBC 10 3,827.67 12.4
3 JP Morgan 7 3,638.02 11.8
4 BofA 5 2,956.79 9.6
5 Commerzbank 5 2,603.59 8.4
6 Credit Agricole 10 2,379.17 7.7
7 Deutsche Bank 3 1,924.71 6.2
8 SG 6 1,818.79 5.9
9 BNP Paribas 7 1,776.23 5.7
10 Natixis 7 1,615.10 5.2
Total 31 30,947.46ALL SUPRANATIONAL 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: N51 Goldman Sachs 5 3,232.60 12.1
2 JP Morgan 5 3,083.30 11.5
3 Deutsche Bank 6 3,003.72 11.2
4 BofA 3 2,534.24 9.5
5 UniCredit 3 2,498.62 9.3
6 SG 5 2,281.46 8.5
7 BNP Paribas 4 2,035.03 7.6
8 Credit Agricole 3 1,763.08 6.6
9 Barclays 3 1,562.25 5.8
10 HSBC 2 1,513.69 5.6
Total 17 26,806.77MUNICIPAL, CITY, STATE, PROVINCE ISSUES 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: N71 UniCredit 9 2,267.66 17.5
2 DGZ-DekaBank 9 1,159.84 9.0
3 Nord/LB 8 1,113.13 8.6
4 Barclays 4 727.09 5.6
5 Deutsche Bank 6 636.10 4.9
6 HSBC 5 625.03 4.8
7 JP Morgan 3 599.47 4.6
8 LBBW 4 578.69 4.5
9 Natixis 4 524.10 4.0
10 DZ Bank 5 512.11 4.0
Total 25 12,943.386 IFR Bonds 2323 p 25 - 53 .indd 28 06 / 03 / 2020 19 : 18 : 06