The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Debt: More SSA benchmarks?

Interest-rate-related MTN supply has fallen.

The prospect of more benchmark issues from top-quality issuers is likely because of a collapse in demand for interest-rate-based structured MTNs. This will not suit issuers, which have taken to the product with some enthusiasm.

High-quality borrowers only issue benchmarks to achieve volume and maintain a level of market visibility. They are able to print at far tighter spreads using structured medium-term notes. In the past few years, there has been a boom in interest-rate-linked MTNs that has enabled supranational, sovereign and agency borrowers to finance on highly aggressive terms. A borrower such as the World Bank will achieve Libor less 40 basis points on a structured trade but a benchmark will achieve in the region of Libor less 20bp – in fact the re-offer on its recent euro bond was mid-swaps less 18bp, which worked out to Libor less 19bp once swapped back to floating-rate dollars (see World Bank story).

It has been difficult for borrowers to raise their entire annual financing requirements purely through MTNs, however. And now that the market has dried up, bankers are suggesting that it will be even harder.

"Rate-linked structured note issuance has fallen because of lower demand for the product.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree