BBVA

Hera, the Italian utility, has signed a green revolving credit facility, laying claim to bringing the first such deal from the country, amid a wave of environmentally conscious loans spearheaded by southern Europe.

Foreign banks operating in the US could be allowed a more flexible funding structure, according to Randall Quarles, Federal Reserve vice-chairman for supervision. It could lower the cost of trapping liquidity and capital instruments in the intermediate holding companies (IHCs) they had to set up to keep operating in the US.

BMW Finance had to negotiate its way through a busy corporate bond market on Monday as it sold a €1.75bn 4.5 and eight year dual tranche offering. It had to pay new issue premiums of around 8bp-10bp but saw strong demand.

German chemicals supplier Lanxess found a surprising lack of demand for its first bond issue since September 2016, which sent bankers scrambling to re-examine their plans for next week's burgeoning corporate pipeline. Lanxess's struggle comes as new issue premiums and how far deals tighten through the bookbuild are being increasingly scrutinised as the market begins to imagine life in the European corporate bond market without the safety net of quantitative easing. Nigel Owen reports.

On Wednesday, German chemicals supplier Lanxess found a surprising lack of demand for its first corporate bond issue since September 2016. Onlookers suggested this is was not a good sign with a heavy pipeline building for future weeks.

BBVA said it paid no new issue concession for a €1bn green bond it issued on Thursday, the largest in the format so far from a European bank.

BBVA tightened in pricing by 15bp for its first offering from a bond framework aligned to the UN’s Sustainable Development Goals. It was able to take €1bn of funding for green assets, the largest such deal in the format by a European bank.

Despite expectations of a slowdown in the pace of issuance in the European high yield market, two borrowers brought €2.9bn of new bonds this week. Both issuers, Spanish construction firm Aldesa and Italian banking payments group Nexi, marketed refinancing deals.

BBVA told GlobalCapital it saw room for social bonds, and a mixed social and green bond, as well as more established green offerings as it revealed its new issuance framework this week. While it expects the senior non-preferred format is most likely to be used, it sees tier two as possible as well.

Iberdrola’s Mexican subsidiary became the first company to close a green loan in the country this week, with BBVA continuing its determined push into sustainable finance by leading the deal.

BBVA has announced a framework for three different types of sustainable bonds, amid a wave of interest in green bond issuance by European banks. A transaction would be the first unsecured sustainable bond from a Spanish bank.

Adecco, the Swiss temporary staffing company, has become the latest blue chip to use a sustainability-linked loan structure for its main corporate revolving credit facility.