On June 9 European Investment Bank (EIB) (AAA/Aaa/AAA) announced that its funding volume target for this calendar year has been revised down to €70 billion (US$84 billion), from the previous projection of €80 billion. Eila Kreivi, head of funding for the Americas and Asia Pacific at EIB in Luxembourg, says the lower funding volume is a result of revised lending plans for EIB's clients this year and supports the supranational's contention that it will not be called upon to fund any sovereign bailouts.
Moody's Investors Service and Fitch have assigned provisional long-term ratings of (P)Aaa/AAA to the mortgage covered bonds proposed to be issued by Bank of New Zealand (BNZ) under a NZ$3 billion covered bond programme. The cover pool will comprise NZ$521,777,333 of residential assets, with a weighted-average seasoning of 25 months and a remaining term of 275 months. The weighted-average loan to value ratio is 44.8 per cent.
Bank of New Zealand (AA/Aa2) (BNZ) has signed programme documentation for New Zealand's inaugural covered bond. Moody's Investors Service and Fitch will release their rating reports on the debut issue tomorrow. Transaction details are under wraps until then, but the bonds will be issued in structured format as the Reserve Bank of New Zealand (RBNZ) has yet to finalise legislation for the product.
Export-Import Bank of Korea (A/A2/A+) (Kexim) will be visiting Australian investors from June 7 to 10 on a non-deal roadshow via Deutsche Bank, RBS Group Australia and UBS Investment Bank. Kexim, which is owned by the government of Korea and provides export credit and guarantee programmes to Korean businesses, will be the second Korean financial institution to appear in the Australian market this year.