Barclays

Another SSA issuer is lining up a seven year euro deal after three borrowers tapped that spot to the tune of over €2bn this week.

Groupe BPCE launched its first tier two deal of the year on Friday, taking advantage of a buoyant market requiring slimmer new issue premiums.

The leveraged finance market suffered an unpleasant shock this week, when $5.6bn of loans and bonds for the Carlyle Group’s acquisition of Veritas Software had to be pulled. Bankers were left blaming market sentiment, an aggressive structure — and each other, write Max Bower and Victor Jimenez.

British American Tobacco has offered the sterling market its second long dated bond in as many days, a £350m 40 year tranche as part of a €1.1bn offering.

Avago Technologies, the US semiconductor components maker, has increased the €500m tranche of its term loan ‘B’ to €900m on strong demand, in another sign of the European leveraged loan market’s competitiveness.

Mondelez International, the US snacks group that owns Cadbury, satisfied its taste for long dated sterling debt on Tuesday, reaching far out along the curve to issue a £400m 20 year bond.

Monte dei Paschi di Siena (MPS) issued a €1bn 10 year Obbligazioni Bancarie Garantite (OBG) this week. The deal came with a 2.125% coupon, the highest of any covered bond sold this year.

AP Moeller-Maersk, the Danish shipping conglomerate, this week issued its first benchmark euro bond since issuing a profit warning in October. Investors were price sensitive, but bankers away from the a €600m seven year trade were impressed with the book size for such a challenging story.

Réseau de Transport d’Électricité issued a benchmark 10 year bond on Thursday that grew to €1bn, as a French-driven order book for the bond hit €3.5bn.

Russia bonds burst back to the top of the emerging market priority list without a sanction being lifted after Alfa Bank smashed through its own yield curve on Wednesday. Demand is rampant among supply-starved investors who will be gleeful about the thawing of the geopolitical frost between Russia and the west, writes Francesca Young.

Réseau de Transport d’Electricité issued a benchmark 10 year bond on Thursday that grew to €1bn, as a French-driven order book for the bond hit €3.5bn.

Alfa Bank’s print of $500m 5% 2018s on Wednesday, which smashed 25bp through its own curve, demonstrated how big investor demand for Russian credit has become as the geopolitical frost begins to thaw.