POWER: EIB, Commerzbank to Sign Deal to Support German Municipal Utilities
Nov-21 14:52
The EIB will sign an agreement with Commerzbank on Friday to provide support to lend €1.2bn to German municipal utilities, EIB president Nadia Calvino said, cited by Reuters.
- “We will be providing risk-sharing for €500 million to mobilize €1.2 billion so that Commerzbank can provide support to the Stadtwerke here in Germany,” Calvino said.
- Funds will be used to modernise the distribution systems, she added.
- Earlier this month, a study by PWC showed German energy suppliers may face financial challenges as they must invest €535bn in electricity and gas distribution networks and in grid-connected heat supply by 2045.
- Municipal utilities are especially strained by the high investment demands since their profits often support other local government activities.
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PIPELINE: Corporate Bond Update: GM Financial, Dominican Republic on Tap
Oct-22 14:48
- Date $MM Issuer (Priced *, Launch #)
- 10/22 $1.5B #Alberta 10Y SOFR+81
- 10/22 $1B Rep of Korea WNG 5Y +19a
- 10/22 $Benchmark GM Financial 3Y +110a
- 10/22 $Benchmark Dominican Republic 10Y 6.25%a
- 10/22 $Benchmark Pershing Square 7Y investor calls
SEK: Risk In EURSEK Remains Tilted To The Downside
Oct-22 14:40
- Risk in EURSEK remains tilted to the downside, with spot hovering just above support at 10.9036, the Sep 15 low. Clearance of this level would expose the April 4 low at 10.7941. Spot is on track for a sixth consecutive close lower, currently -0.25% today.
- It’s been another session with relatively few domestic catalysts. Riksbank Deputy Governor Jansson noted that it is reasonable to look through the upcoming temporary reduction in food VAT. However, the Board will “monitor how households' and companies' expectations and behaviour are affected, so that fluctuations in inflation that are temporary to begin with do not become more permanent."
- This isn’t a surprising view to hold. We continue to believe that the policy rate will remain at 1.75% for some to come, with the risk of a hike to 2.00% somewhat greater than the risk of another cut.
- Today’s SEK strength comes despite a fairly subdued session for European equity futures. This week’s SEK outperformance may therefore reflect increased sympathy for domestically-focused narratives (i.e growth tailwinds from accommodative monetary policy and an expansionary 2026 budget).
GILT AUCTION PREVIEW: CORRECTION: Auction Size
Oct-22 14:35
The DMO has announced a GBP3.75bln, not GBP4.75bln auction size for the new 4.125% Mar-33 Gilt next Wednesday.
