Banks

Gentlemen’s agreements seem like a quaint idea when billions of dollars are up for grabs, yet, bafflingly, the capital markets continue relying on them. It’s time to stop assuming borrowers will blindly do what financiers want when there is a cheaper, easier or more sensible option for treasuries to take.

The Province of Quebec came “significantly” through fair value in its $1bn five year trade on Tuesday, as the issuer was able to take advantage of rarity in both its own name and SSA dollar issuance.

Elis, the French workwear and laundry group, took advantage of a corporate bond market eager for yieldy paper on Tuesday by issuing a €500m five year high yield bond that found a friendly reception.

Public sector borrowers were able to achieve zero or negative new issue premiums and close books early in the euro market on Tuesday as investors piled into haven assets amid a weaker outlook for global growth.

The European Financial Stability Facility appointed banks on Tuesday for its first euro benchmark of the second quarter, which will be issued with a 16 year maturity – a part of the euro curve that has become increasingly attractive as bank treasuries head to the long end in search for bigger returns.

A strong Swedish market led the City of Stockholm to place its first private trade of the year on Monday. The Skr2.5bn ($268.4m) note was its largest non-syndicated issue since 2012.

Société Générale has appointed a new group country head for Russia, replacing Didier Hauguel, who is stepping down to focus on charity work.

Fiat Chrysler Automobiles has extended the maturity of its €6.25bn syndicated bank facility, as loan market activity picks up at the beginning of the second quarter.

Medacta, the Swiss maker of orthopaedic devices, has covered its Sfr550m IPO within the revised price range on the penultimate day of the bookbuild, according to a banker involved in the deal.

Volksbank Wien placed its debut additional tier one deal on Tuesday, becoming the latest financial institution to revisit a transaction that was first floated in late 2018.

Young and Co’s Brewery, the owner and operator of roughly 220 pubs in London and the south east of England, has entered the US private placement market.

The Slovak Republic kick-started its 2019 international bond issuance on Tuesday, printing a €1bn 11 year, drawing a book of over €5bn. It paid a “minimal” new issue concession, according to lead managers.