And this week CPPIB CAPITAL, guaranteed by
the Canada Pension Plan Investment Board,
is set to come to the market, having
mandated Barclays, BNP Paribas, Citigroup and
TD to lead manage its upcoming three-year
144A/RegS benchmark.
EUROS
SWEDEN SETS TONE WITH
BLOCKBUSTER TRADES
This is a big year for SWEDEN, which in the
lRSTûTHREEûWEEKSûOFû*ANUARYûHASûALREADYû
managed to issue as much debt in January as
it did during the whole of 2017.
The kingdom is one of this year’s early
movers in the SSA market.
Less than two weeks after a blockbuster
US$3bn trade that garnered the largest
order book ever achieved for the issuer (over
53BN û3WEDENûSOLDûAûõBNûlVE
YEARû
deal.
Credit Agricole, Danske Bank, Goldman Sachs
and JP Morgan acted as leads on Sweden’s
lRSTûEURO
DENOMINATEDûTRANSACTIONûINûNEARLYû
three years.
The deal was not opportunistic, according
to a lead, but rather stemmed from a
mandate given by the country’s central
bank. It came shortly before a €4bn bond
matures.
“The Swedish economy is in good shape
and we have very little need for funding and
mainly focus on domestic funding,” said
Anna Sjulander, head of funding at
Sweden’s DMO.
“However, we have been busy at the start
of 2018, as we on-lend proceeds we raise for
the central bank and we have some
redemptions early in the year.”
3WEDENûISûRElNANCINGû3+RBNû
(US$12.7bn) this year and has another US$3bn
coming up at the end of February and
US$2.25bn in May, according to Sjulander.
4HEûREQUIREMENTSûFORûTHEûlRSTûHALFûOFûû
alone are set to outpace the total value of
trades for the whole of last year, when the
kingdom raised US$7.25bn. In 2016, the
total amount was US$7bn.
Still, Sweden remains a rare name in the
MARKET ûWHICHûMADEûITûDIFlCULTûTOûASSESSû
what fair value was for its latest deal.
The fact that Sweden is not eligible for the
ECB’s PSPP also raises question marks over
where it should be priced, said a banker
away from the deal.
“It should be in the high 20s versus Bunds,
and for investors it is very attractive to get a
Triple A at that price.”
The bonds priced at 27bp through mid-
swaps, equivalent to 22.8bp over Bunds.
A lead said there was no new-issue
premium, although another noted that its
illiquid curve made it challenging to
establish fair value.
“If there was no QE, it would be trading
much tighter to peers, as in the past it was
tighter to Germany,” said the second lead.
“If you look at comparable pricing before and
after PSPP, we now have a premium over
Finland that didn’t exist before, though the
spread to Bunds was in line with where we have
PRICEDûOVERûTHEûLASTûlVEûYEARS vûSAIDû3JULANDER
And investors were keen to buy the debt -
THEûlNALûBOOKûCLOSEDûABOVEûõBN û
excluding joint lead manager interest.One investor said that Sweden is a market
he favours within an environment of
interest rate uncertainty, as it is fairly stable,
performs well and does not suffer from
volatility.
The kingdom last issued a euro deal in
February 2015, a €1.5bn deal maturing in
February 2020.MUNIFIN SEIZES OPPORTUNITY
TO EXTENDMUNICIPALITY FINANCE seized the opportunity to
extend its curve out to the 15-year tenor as
pricing conditions in the euro market
remain supportive for issuers.
The Finnish credit institution was keen to
go longer after issuing two 10-years last year- a regular €1bn and a €500m Green bond -
ASûWELLûASûAûlVE
YEARûõMû'REENûBONDûINû
- “In 2016, we were successful building out
our dollar curve and we wanted to replicate
that in euros,” said Joakim Holmstrom, head
OFûFUNDINGûATû-UNIlN
“Our lending is very long-dated by nature -
in the social housing sector, maturities go
up to 40 years.”
ALL SOVEREIGN BONDS IN EUROS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues €(m) (%)
1 JP Morgan 4 4,257.85 14.5
2 NatWest Markets 3 3,841.36 13.1
3 Barclays 3 2,960.81 10.1
4 Citigroup 5 2,826.74 9.6
5 Goldman Sachs 4 2,711.19 9.2
6 ING 1 1,795.79 6.1
=6 Banca IMI 1 1,795.79 6.1
8 Credit Agricole 2 1,664.99 5.7
9 SG 1 1,248.51 4.2
=9 BNP Paribas 1 1,248.51 4.2
Total 8 29,434.43
Excluding ABS/MBS.Source: Thomson Reuters SDC code: N4ALL EURODOLLAR STRAIGHTS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 Citigroup 26 5,632.31 8.8
2 HSBC 21 4,765.16 7.4
3 JP Morgan 22 4,421.80 6.9
4 Goldman Sachs 19 4,200.67 6.6
5 BAML 24 3,969.25 6.2
6 Morgan Stanley 19 3,689.85 5.8
7 Deutsche Bank 15 2,563.26 4.0
8 BNP Paribas 11 2,236.27 3.5
9 Standard Chartered 9 2,133.03 3.3
10 BMO 6 2,090.73 3.3
Total 79 64,029.41
Including Euromarket preferreds. Excluding equity-related debt.
Source: Thomson Reuters SDC code: J12
ALL INTERNATIONAL US$ BONDS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 Citigroup 41 9,680.89 9.0
2 Goldman Sachs 25 8,306.35 7.7
3 HSBC 27 8,229.24 7.6
4 Deutsche Bank 24 6,992.60 6.5
5 Morgan Stanley 25 6,539.61 6.1
6 JP Morgan 30 6,466.80 6.0
7 BAML 31 5,908.46 5.5
8 Barclays 16 5,007.56 4.6
9 BNP Paribas 15 4,371.46 4.0
10 TD Securities 9 3,330.67 3.1
Total 114 107,951.95
Including Euro, foreign and global issues. Excluding equity-related debt,
US Global ABS/MBS.
Source: Thomson Reuters SDC code: O1ALL SUPRANATIONAL BONDS IN EUROS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues €(m) (%)
1 Barclays 3 2,856.94 30.3
=1 Credit Agricole 3 2,856.94 30.3
3 UniCredit 2 2,608.20 27.7
4 Goldman Sachs 1 613.36 6.5
5 Deutsche Bank 1 248.73 2.6
=5 BNP Paribas 1 248.73 2.6
Total 3 9,432.90
Excluding ABS/MBS.
Source: Thomson Reuters SDC code: N5ALL AGENCY BONDS IN EUROS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues €(m) (%)
1 BNP Paribas 2 1,779.66 11.6
2 Commerzbank 1 1,654.82 10.8
=2 Goldman Sachs 1 1,654.82 10.8
4 JP Morgan 3 1,287.37 8.4
5 UniCredit 2 1,272.62 8.3
6 Citigroup 4 1,001.77 6.5
7 Nomura 2 913.14 5.9
8 Natixis 2 748.08 4.9
=8 Credit Agricole 2 748.08 4.9
10 Davy 1 663.79 4.3
Total 12 15,369.70
Excluding equity-related debt. Including publicly owned institutions.
Source: Thomson Reuters SDC code: N6