SSAR
US DOLLARS
IFC PREYS ON LACK OF DOLLAR
COMPETITION
The INTERNATIONAL FINANCE CORPORATION took
ADVANTAGEûOFûANûABSENCEûOFûCOMPETINGû33!û
SUPPLYûTOûBRINGûITSûlRSTû53ûDOLLARû'LOBALû
BENCHMARKûOFûITSûlSCALûYEAR ûHITTINGûTHEû
53BNûMARKûWITHûAûlVE
YEARûOFFERING
4HEû4RIPLEû!ûRATEDûISSUER ûAûMEMBERûOFûTHEû
7ORLDû"ANKû'ROUP ûSTARTEDûITSûlSCALûYEARûINû
*ULYû)TûEXPECTSûTOûISSUEûATûLEASTûONEû'LOBALû
BENCHMARKûINûTHEûCURRENCYûEVERYûYEAR û
ACCORDINGûTOû&LORAû#HAO ûGLOBALûHEADûOFû
FUNDINGûATû)&# ûANDûAûNUMBERûOFûFACTORSû
PLAYEDûINTOûTARGETINGûAûlVE
YEARûDOLLARûBOND
h4HEûlVE
YEARûTENORûWASûSELECTEDûFORû
SEVERALûREASONSûASSET
LIABILITYûMATCHING ûITû
HADûBEENûTWOûYEARSûSINCEûOURûLASTûlVE
YEARû
53ûDOLLARû'LOBALû
ûEXCLUDINGûTHEû53BNû
'REENû;BOND=ûWEûDIDûINû/CTOBERûû
û
INVESTORûINTERESTûANDûLACKûOFûlVE
YEARû
SUPPLY vûSAIDû#HAO
“We were looking to add some liquidity to
our balance sheet and with the markets
CONDUCIVE ûWEûDECIDEDûTOûMOVEûFORWARDv
$EMAND ûEXCLUDINGûLEADûMANAGERû
INTEREST ûWASûOVERû53BNû4HEû)&#ûWASûABLEû
TOûRATCHETûINûPRICINGûBYûBPûFROMû)04S û
printing the notes at swaps plus 2bp.
h)NûGENERAL ûTHEûFEEDBACKûWASûPOSITIVEû7Eû
WEREûGRATEFULûTOûSEEûINVESTORSûCOMINGûINû
WHOûAPPRECIATEDûOURûRARITYûVALUEûANDû
SUPERIORûCREDIT vûSAIDû#HAOûh4HEûNEGATIVEû
feedback naturally centred around the tight
PRICINGv
#ENTRALûBANKSûANDûOFlCIALûINSTITUTIONSû
TOOKûûOFûTHEûNOTES ûBANKSûûANDûASSETû
MANAGERSûû"YûGEOGRAPHY ûûWENTûTOû
!SIA ûûTOûTHEû!MERICASûANDûûTOû%-%!
The offering came after the IFC sold a
53BNûTHREEûYEARû'LOBALûATûSWAPSûLESSûBPû
INû*ANUARY ûINûITSûLARGESTû53ûDOLLARûDEBTû
offering since 2016. The issuer also placed a
US$350m FRN due March 2019 in February.
Barclays ûJP Morgan ûMizuho and TD led the
latest transaction.EUROS
ESM CUTS SWATHE THROUGH FUNDING
TARGETThe EUROPEAN STABILITY MECHANISM took out
half of its funding needs for the quarter in
ONEûGO ûASûITûPRINTEDûAûõBNûlVE
YEARûONû
Tuesday.
4HEûDEAL ûTHEû%3-SûlRSTûNEWûlVE
YEARû
BONDûSINCEû/CTOBERû ûGAINEDû
momentum from orders which peaked
ABOVEûõBNû4HEû%3-ûPLANSûTOûISSUEûõBNûthis quarter and has a further €5.5bn to raise
INûTHEûlNALûQUARTERûOFûTHEûYEAR
h4HEûDIFlCULTYûWITHûSHORT
ENDûPAPERûHASû
BEENûTRYINGûTOûlNDûTHATûSWEETûSPOT vûSAIDû
+ALINû!NEVû*ANSE ûSECRETARYûGENERALûATûTHEû
%3-ûh"UTûTHEûBREAKûFROMûNEGATIVEûTOû
POSITIVEûYIELDSûHASûBEENûMOVINGûDOWNûTHEû
CURVEûWITHûINTERESTûRATESûCHANGING ûANDûWEû
SAWûTHISûPOSSIBILITYûTOûPRINTûTHEûlRSTûPOSITIVE
YIELDINGûDEALûINûTHEûlVE
YEARûAREAûSINCEû
v
One of the leads said the trade was
helped by a lack of competing names in the
market.
h4HERESûNOTûBEENûMUCHûSUPPLY ûSOûIFûYOUû
HAVEûCASHûTOûSPENDûANDûNEEDûTOûBUY ûTHERESû
NOTûMUCHûCHOICE vûHEûSAIDûh0EOPLEûWEREûAû
LITTLEûBITûSURPRISEDûATûTHEûRELATIVELYû
AGGRESSIVEûOPENINGûATûSWAPSûLESSûBP ûINû
THEûCONTEXTûOFûWHEREûRECENTûlVE
YEARûTRADESû
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AFTERûTHEûlRSTûUPDATEûWEûHADûAûLOTûOFûBIGû
QUALITYûACCOUNTSûCOMEûINv
The issuer was able to set the spread at
SWAPSûLESSûBP ûMOVINGûPRICINGûBYûBPû
from guidance. Leads put the NIP at around
3bp.
h)FûYOUûGOûSHORTERûONûTHEûCURVE ûYOUûHOPEû
YOUûCANûPRINTûAûLARGERûDEAL ûBUTûWEûWEREû
looking at this more from a maturity point
OFûVIEW vûSAIDû*ANSEûh/VERûTHEûLASTûFEWû
WEEKS ûWEûHADûHEARDûDEMANDûFROMû
INVESTORSûFORûEUROûPAPERûINûTHEûSHORTERûENDû
WHICHûISûPOSITIVEûYIELDINGû-ANYûAREûNOTûBONDS SSAREUROPEAN SOVEREIGN BOND AUCTION RESULTS WEEK ENDING JULY 26 2018
Pricing date Issuer Size Coupon (%) Maturity Average Yield (%) Bid-to-cover
Jul 23 2018 Belgium €705m 0.50 Oct 22 2024 0.167 2.920
Jul 23 2018 Belgium €1.112bn 0.80 Jun 22 2028 0.691 2.660
Jul 23 2018 Belgium €1.171bn 1.45 Jun 22 2037 1.339 1.250
Jul 23 2018 Belgium €618m 2.15 Jun 22 2066 1.896 1.230
Jul 24 2018 UK £2.75bn 1.00 Apr 22 2024 1.094 2.133
Jul 25 2018 Germany €3.201bn 0.00 Oct 13 2023 –0.180 1.140
Jul 26 2018 Italy €2bn 0.00 Mar 30 2020 0.647 1.610
Jul 26 2018 Italy (€i) €1.25bn 1.30 May 15 2028 1.550 1.640
Source: IFR
ALL US DOLLAR FIXED-RATE GLOBALS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 BAML 127 48,557.02 11.9
2 JP Morgan 122 46,218.92 11.3
3 Citigroup 108 39,756.70 9.7
4 Barclays 73 39,151.48 9.6
5 Goldman Sachs 73 29,966.53 7.3
6 Wells Fargo 74 25,241.16 6.2
7 Morgan Stanley 67 21,169.54 5.2
8 HSBC 41 20,584.06 5.0
9 Deutsche Bank 44 20,085.59 4.9
10 RBC 47 18,916.34 4.6
Total 243 409,611.48
Excluding equity-related debt, ABS/MBS.Source: Thomson Reuters SDC code: O5ALL INTERNATIONAL BONDS (ALL CURRENCIES)
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 JP Morgan 647 178,843.60 7.6
2 Citigroup 612 164,354.01 7.0
3 HSBC 610 143,667.39 6.1
4 Barclays 461 143,317.06 6.1
5 BAML 499 131,155.65 5.6
6 Goldman Sachs 365 118,514.78 5.0
7 Deutsche Bank 476 112,941.29 4.8
8 BNP Paribas 400 95,997.30 4.1
9 Morgan Stanley 372 93,289.94 3.9
10 Credit Suisse 338 65,464.68 2.8
Total 3,450 2,362,693.62
Including Euro, foreign, global issues. Excluding equity-related debt,
US Global ABS/MBS.
Source: Thomson Reuters SDC code: J1
ALL BONDS IN EUROS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues €(m) (%)
1 BNP Paribas 221 53,028.13 7.2
2 SG 183 44,971.56 6.1
3 HSBC 221 43,109.72 5.9
4 Deutsche Bank 203 42,574.27 5.8
5 Credit Agricole 170 41,776.38 5.7
6 JP Morgan 159 40,018.47 5.5
7 Barclays 138 37,657.74 5.1
8 UniCredit 187 36,297.33 5.0
9 Goldman Sachs 100 31,122.43 4.3
10 Citigroup 124 30,868.77 4.2
Total 1,020 731,544.14
Including Euro-preferreds. Excluding equity-related debt,
US Global ABS/MBS.
Source: Thomson Reuters SDC code: N1