Banks

Rating: Aaa/AAA/AAA

Canadian Imperial Bank of Commerce issued its second Australian dollar deal of the year on Thursday. The senior unsecured short-term debt is not subject to Canadian bail-in regulation.

Euro investors have become more receptive to UK bank debt this year, leading to a blowout reception for a covered bond from Yorkshire Building Society this week. But issuers are yet to break a long period of silence in sales of unsecured products, mindful as they are of a Brexit hangover in the euro market.

BP on Thursday gave the European corporate bond market its first test of a really big, multi-tranche, investment grade issue since Easter, and showed that the market is every bit as keen as before the break. Order books for the three part bond were big and new issue premiums slim to invisible.

The Inter-American Development Bank (IADB) and European Investment Bank (EIB) swung by the sterling market this week, as a lack of competitive activity and a favourable basis swap proved to be a strong lure for issuers.

Saudi Telecom Co printed a $1.25bn 10 year sukuk on Thursday from book of more than $4.5bn, with a spread just inside fellow state-owned corporate Saudi Electric Co.

William Hill’s £350m seven year high yield deal last week grabbed an opportunity opened up by the extension to the Brexit deadline, according to group treasurer Mark Hirst, supplying a sterling market that has seen sparse issuance so far this year. But the constrained supply in the market meant the company’s attempt to buy back its 2020s at 103 attracted limited investor interest.

EG Group, the UK petrol station company owned by TDR Capital, has boosted the size of its dual currency high yield bond issue, adding a new senior secured euro tranche on the back of high demand. But senior bondholders are getting a rough deal from the size increase, which is being partly used to cut their safety cushion by paying off second lien debt.

Sirius Minerals, the London-listed miner, has won investor support for the equity leg of a $2.8bn financing project that will fund the largest polyhalite mine in the world.

The Asian Infrastructure Investment Bank (AIIB) has mandated banks for its inaugural bond, a five year dollar global benchmark.

Shares in Tesla, the US maker of electric vehicles, gained as much as 2.8% on Thursday morning after the company announced it would raise up to up to $2.3bn of capital by selling new shares and convertible bonds to strengthen its balance sheet following a net loss of $702m in the first quarter of the year.

Nederlandse Waterschapsbank (NWB) acted as an oasis for dollar starved investors on Thursday, with its $500m no-grow floater oversubscribed before US markets opened.