For many supranational, sovereign and agency (SSA) borrowers, providing credit to aid economies through the COVID-19 crisis goes to the core of their purpose. Even those experiencing little impact on the lending side are now dealing with substantially changed capital markets.
Kauri issuance rebounded in May-June as more than NZ$2.6 billion (US$1.7 billion) priced, including a rare 10-year transaction of record volume for the tenor. Technical demand drivers are at play but intermediaries suggest positive conditions could remain even as a supply gap closes in the second half of 2020.
Late in the Sydney day on 6 May, Rentenbank (AAA/Aaa/AAA) launched a minimum A$100 million (US$64 million) increase to its January 2025 Kangaroo bond. The forthcoming deal has indicative price guidance of 50 basis points area over semi-quarterly swap and 45.75 basis points area over Australian Commonwealth government bond. Pricing is expected on 7 May, according to lead managers J.P. Morgan and TD Securities.
SSA Yearbook 2020
The annual guide to the world's most significant supranational, sovereign and agency sector issuers.