Utility stalwarts vanish from PPs as buyers cling to yield targets

By Silas Brown
30 Jul 2020

Regular credits in the private placement markets in Europe, like UK utilities, have disappeared from the scene since the coronavirus pandemic began because investors have not managed to reduce their yield targets to compete with pricing in public markets. Silas Brown reports.

“If I’m honest, I would be reticent to recommend private placements to any UK utility,” said one PP banker in London. “As an investment banker, I’d want to deliver my client the best deal and that’s in the sterling public market for them right now.”

UK utilities account for ...

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