EGB Supply

The EFSF, Finland, Germany and Italy all still look to issue in the week ahead while Belgium came to the market on Monday. We pencil in gross nominal issuance of E15.6bln, down from E20.1bln last week.

• The EFSF has issued a mandate for an upcoming 3/15-year transaction to take place in the “near future”, we expect a transaction today. On offer will be the 3-year 2.75% Aug-26 EFSF (ISIN: EU000A2SCAF5) for an undefined amount – MNI expects between E1.0-2.5bln – alongside E2bln WNG of the new 15-year bond. The EFSF has already raised E13bln of its E20bln funding target ahead of the upcoming transaction.
• Finland has also announced a mandate for its “upcoming” new 5-year RFGB syndication. We also expect the transaction to take place today. The size has already been set at E3bln WNG and the maturity date will be 15 April 2029.
• This morning, Germany will look to sell E3bln of the 7-year 2.40% Nov-30 Bund via auction (ISIN: DE000BU27006).
• Italy will look to hold a BTP Short Term auction on Friday, with a reopening of the 3.60% Sep-25 BTP Short Term (ISIN: IT0005557084) which was launched in July for E2.25-2.75bln (in line with MNI expectations). The BTPei auction that was due to be held simultaneously has been cancelled.

EZ230823.pdf