Banks

Theresa May may not have brought any further clarity to the UK’s Brexit agreement, but that is not causing any issues for investors and issuers in the sterling corporate bond market. On Tuesday, two more deals were priced: one from a UK issuer, one from a European.

The UK Debt Management Office showed no effects from the ‘noisy UK environment’ to comfortably conclude its 2018/19 syndicated programme on Tuesday. KfW will add to the sterling SSA supply this week after picking banks for its third benchmark in the currency this year.

As climate change climbs the agenda, banks are finding themselves under increasing pressure to bolster their commitments to social responsibility. That is helping green loans take off in the Middle East and Africa — slowly. Some bankers are confident that banks will see the importance of sustainable financing, but others are unconvinced, pointing to a range of obstacles.

Sanoma, the Finnish learning and media company, has signed €550m of bank funding, some of it earmarked to fund its acquisition of Iddink, the Dutch educational platform and service provider.

Egger, the Austrian wood-based panel maker, has entered the Schuldschein market for a third time, shaving its pricing margins once again.

Deutsche Bank offered large new issue premiums in an effort to lure investors towards four tranches of non-preferred senior debt in euros and sterling on Tuesday. The decision to include a two year offering caught some market participants by surprise.

Latam Airlines returned to the bond market for the first time in almost two years, printing $600m of seven year paper.

Demand for corporate bonds is strong but it is at its strongest for green and hybrid debt, especially for deals that combine both qualities. On Tuesday, Spanish utility Iberdrola found similar demand for green hybrids to that which Engie and EDP had benefited from in January, and market participants are starting to revise their issuance forecasts for the asset class.

Paraguay came to market on Monday for a 30 year bond on Monday, picking three banks to run the books for its longest bond ever.

Greencoat UK Wind, the UK infrastructure fund focused on wind farm development, has begun the deal roadshow for its latest £131m capital increase.

The European Investment Bank on Monday selected the five year part of the curve for its second euro benchmark of the year. The issuer will be hoping to replicate the recent success of public sector agencies in that tenor, including KfW, which achieved a record breaking book for its five year last week.

Finland and Madrid hit screens on Monday to capitalise on the red hot appetite for euro sovereign supply in the 10 year part of the curve.