EGB Supply - W/C January 23, 2023

The Netherlands, Germany and Italy are due to hold auctions and we expect syndications from the EU, Spain and France. We look for gross nominal issuance at first round operations of E29.0bln for these deals, down a little from last week’s E32.6bln.

• The EU will look to hold a syndication today with the 30-year 3.00% Mar-53 EU-bond (ISIN: EU000A3K4DY4) due to be tapped. There is a bit more uncertainty over the size of the deal than normal – most recent 30-year syndications have been as part of a dual-tranche (for around E3bln) with the single tranche deals tended to be launches of around E5bln. So we pencil in a E3-5bln range for today’s transaction.
• In terms of today’s auctions, the Netherlands will look to sell E1.5-2.0bln of the 2.00% Jan-54 DSL (ISIN: NL00150012X2). This will be the first reopening of the 30-year DSL since it was launched via DDA in September.
• Also this morning, Germany will come to the market with E1.5bln of the 0% Oct-25 Green Bobl (ISIN: DE0001030716) on offer. Note that the issue has a residual maturity of around 3-years and marks the first of 5 green auctions in 2023 (with 2 green syndications due too). Germany plans to sell E15-17bln of green securities this year.

EZ230124.pdf