EGB Supply

Austria, the Netherlands, Finland, Greece, Germany, Spain, France, Italy and potentially Belgium all still look to sell bonds this week while the EFSF Slovakia and the EU all came to the market yesterday. We pencil in gross nominal issuance of E49.3bln, around double last week’s E24.0bln.

• Austria will come to the market in the “near future” to launch a new 6-year May-29 Green RAGB for E3bln WNG alongside a new 30-year Oct-53 RAGB. MNI expects the transaction to take place on today and looks for a size of E2.5-4.0bln for the 30-year RAGB.
• This morning will see the Netherlands come to the market to issue E1-2bln of the 0% Jan-52 DSL (ISIN: NL0015614579) via auction.
• Today will also see Finland hold a 5/25-year RFGB auction for up to E500mln of the 0.50% Sep-28 RFGB (ISIN: FI4000348727) and up to E1.0bln of the 1.375% Apr-47 RFGB (ISIN: FI4000242870).
• Belgium did not announce the details of its auction next week which can often be an indication of an upcoming syndication. Belgium has already launched 10-year and 30-year OLOs so far this year and has plans for three syndications in total, with the maturity of the third to be “determined by the market” according to the 2023 issuance plan. The syndication could be announced as soon as today to be held tomorrow.
• Germany will hold investor meetings starting today to present its Green Bond presentation (that was released yesteday). We would expect a syndicated transaction to follow, potentially as early as tomorrow. We pencil in a transaction size of E4-5bln. Germany’s 2023 funding plan included two green syndications this year: a 10-year transaction and a longer-maturity transaction. The next Green auction is not due to be held until 7 June.

EZ230418.pdf