Austria

NIBC and Raiffeisenlandesbank NiederÖsterreich-Wien (RLB NW) found solid demand for their pair of €500m 10 year covered bonds issued on Tuesday. But with the tighter Austrian deal extracting more demand at a tighter spread, investors clearly showed a preference for the hard bullet maturity.

BayernLB has issued the first of three 10 year covered bonds to be priced this week. With the European Central Bank stepping up its presence in the primary market compared to January 2017, forthcoming deals from NIBC and Raiffeisenlandesbank NiederÖsterreich-Wien (RLB NW) are assured of a smooth execution.

A trio of 10 year covered bond deals issued this week showed that interest in this tenor is less uncertain than initially feared. But, in a rising yield environment, investors are likely to become more defensive and this demand risks being short-lived.

Erste Group attracted solid demand for its 10 year covered bond on Tuesday and, by pricing the transaction with a relatively slim new issue premium, it helped assuage concerns about the appropriateness of this tenor that followed deals issued last week.

Steinhoff International’s shares jolted downwards again today as it met its banks in London, seeking their support to get through the difficulties caused by apparent false accounting.

Vonovia, the German housing company, is likely to issue debt next year, to finance its €5.2bn cash offer for Austrian peer Buwog, announced on Monday morning.

The City of Vienna’s long-dated loans are three times subscribed three weeks into the marketing process. As investor appetite grows for longer-dated maturities, corporates are beginning to find luck with the product.

Austrian oil and gas company OMV discovered on Thursday that investors are far from finished with the investment grade corporate bond market in 2017. The strength of demand for its new nine year deal resulted in the company printing its largest ever bond.

The City of Vienna’s loans are three times subscribed three weeks into the marketing process, as investor appetite grows for longer-dated maturities.

The City of Vienna entered the Schuldschein market on Thursday with a €75m triple tranche transaction.

Oesterreichische Kontrollbank reopened a Kangaroo line on Monday and found interest from investors that are not often seen in Australian dollar SSA deals.

The IPO market in Europe lost some of its vigour this week, as several deals traded badly in the aftermarket, raising fears that deal quality is deteriorating and pricing is being pushed too far, writes Aidan Gregory.