LONDON, Nov 7 (IFR) - SSA US dollar issuance, estimated at US$10bn, is being met with solid investor interest, allowing issuers to tighten guidance on all deals.

Rare names such

as the Government of Canada are leading the pack this week with books of over US$5.7bn, including US$200m joint lead manager interest.

BMO, Citigroup, HSBC, Scotiabank and TD set the spread at 9bp over Treasuries for the US$3bn five-year Global benchmark, an uncommon opportunity for investors to take on a high-quality name.

“It’s one of few sovereign issuers and the pricing makes sense if you look at the spread to Treasuries,” said a lead.

Rentenbank, Germany’s development agency for agribusiness, tightened the spread for its 10-year via Barclays, BMO, Bank of America Merrill Lynch and TD to swaps plus 23bp, from initial price thoughts of plus 25bp area.

“It has rarity value and trades in line with KfW, although KfW has not done a 10-year in dollars. When you’re going to gauge investor interest, it’s also worth considering that this is a smaller benchmark,” said a banker away from the deal.

The order book was last heard at US$1.65bn at 10am.

A banker said the SEC-registered Global transaction added that the deal size will probably be over US$1bn.

“Pricing is in line with what we expected, with good demand out of Asia and the US alike. There’s not a huge amount of 10-year supply,” he said.

Asian Development Bank, which issued a 10-year two weeks ago, swaps plus 22bp was trading 4.5bp tighter at the time the mandate was announced.

Caisse des Dépôts et Consignations set the final spread for its US$1bn three-year at 17bp over mid-swaps via BNP Paribas, Goldman Sachs, Morgan Stanley and Societe Generale, from IPTs of 20bp area over mid-swaps.

It is CDC’s first dollar issue of the year, and looks to tap into investors demand for French agency paper, particularly given that the sector is underrepresented in the secondary market.

“There’s a nice pick-up over other agencies as it trades around 5bp wider than Cades’ 2019s and 2020s. It’s hard to pinpoint fair value, but if you look at where the line of the 2019s mature and then move outwards, you arrive at 18bp-19bp,” said a lead.

Cades’ recent US$3bn 1.75% Sep 2019s were trading around 10bp over swaps, according to Tradeweb data.

Books for the Reg S transaction were over US$1.8bn, excluding lead manager interest.

Green, Social and Sustainability issuance is expected to take off beginning this week, led by Nederlandse Waterschapsbank’s US$500m Green bond due Nov 2021 - the first of five issuers in the pipeline.

“After a quiet euro period, issuers are looking to profit from unique conditions in spreads,” said a banker. “Many are meeting investors now that they’re coming to the end of funding programmes.”

Guidance for NWB was set at 16bp area by leads Bank of America Merrill Lynch, Daiwa and Nomura, and indications of interest were over US$600m.

Japan Bank for International Cooperation went head-to-head with Rentenbank marketing a 10-year - as well as a three- and a five-year - albeit with different spread dynamics as it is around 25bp on the back of Rentenbank due to the latter’s rarity value.

JBIC’s spreads were set at swaps plus 26bp, plus 35bp, and plus 47bp for the three- five- and 10-year respectively, with lead managers JP Morgan, Barclays, Daiwa and Goldman Sachs seeing demand of over US$2.3bn, US$2.9bn, and around US$4bn.

African Development Bank is coming to market with a new five-year Global US dollar transaction. It is simultaneously marketing a Social bond in euros with a six-year tenor.

“Liquidity across both euro and dollar markets is extremely strong. AfDB always had the plan to come to the dollar market now,” said a lead on the trade.

Barclays, BNP Paribas, Citigroup, JP Morgan and Wells Fargo are lead managing the US dollar issue, with initial marketing at 12bp area over mid-swaps.

The International Finance Facility for Immunisation and KfW are two additional names eyeing the dollar market.

IFFIm has lined up a Reg S, US dollar-denominated three-year FRN, via Citigroup, Credit Agricole and Goldman Sachs, who are organising a global investor call on November 8.

KfW has mandated BMO, JP Morgan and TD to lead manage its upcoming three-year US$3bn no-grow Global benchmark.

Away from dollars, the European Financial Stability Facility is closing its funding programme for the year with dual-tranche taps of the 0.875% Jul 2027 and 1.8% Jul 2048.

Final terms for the €1.5bn, Jul 2027 tap was set at 20bp through mid-swaps, and for the €1.3bn Jul 2048 tap at 3 through mid-swaps. Barclays, DZ Bank and Nomura are joint lead managers.

“The market tone is constructive following the ECB announcement (of a draw-down of its asset purchasing), and there’s an ongoing need for duration,” said a banker away from the deal.

The UK Debt Management Office launched its new 0.125% index-linked Treasury Gilt maturing Aug 2048. Final terms were £3bn at 1bp over the 0.75% November 2047 linker, and books closed at around £25bn.

“It’s a regular operation, they tend to syndicate twice a year and have quite a strong need for UK inflation,” said a lead. (Reporting by Melissa Song Loong; editing by Ian Edmondson, Alex Chambers)