Belgium

Investors clamouring at a chance to diversify helped Argenta Spaarbank’s debut benchmark euro covered bond price close to where bonds from established Belgian issuers trade when it was issued on Tuesday.

Belfius Bank took advantage of a quiet market to issue a seven year senior preferred transaction on Monday which attracted exceptionally strong demand from bank treasuries buying for their liquidity portfolios, where demand competes with negative yielding covered bonds.

Argenta Spaarbank has mandated leads to issue its debut covered bond deal. The mandate follows the National Bank of Belgium's decision to grant it a covered bond licence, taking the number of issuers in the country to five, boosting the prospects for supply this year.

EMEA’s equity blocks market has reopened for 2021 with a sale of treasury shares by Immobel, the Belgian real estate developer. More issuance from the sector is expected following the imposition of fresh lockdowns across the continent to combat the spread of coronavirus.

France and Belgium announced borrowing programmes for 2021 this week. France is aiming for the same amount as this year, while Belgium is paring back its needs.

The Belgian debt agency has announced its borrowing for 2021, reducing its requirements relative to the amount it has raised in 2020 — although it is a sharp increase relative to the amount it planned to raise this year before the pandemic hit.

Two public sector borrowers hit the euro bond market on Wednesday, raising what might well be the final benchmark funding of 2020.

The Belgian debt agency has reduced its gross borrowing needs for 2020 by almost €10bn, with the sovereign’s OLO issuance also expected to be less than previously forecast.

Aedifica, the Belgian real estate company that specialises in care homes for the elderly, has secured an 83.7% take-up for its €459m rights issue.

The European Central Bank said this week that it thought a stronger role for countercyclical capital buffers would be key in making sure that banks use their available resources to boost lending in times of crisis.

Aedifica, the Belgian healthcare real estate investment company, which owns a portfolio of care homes, has launched a €459m rights issue to fund an acquisition and to grow its development pipeline. Sources close to the deal are confident that the cash call will be popular given investor demand for exposure to speciality real estate businesses.

Argenta Spaarbank attracted attention from investors with a 15bp new issue premium on Tuesday, allowing it to raise €500m of non-preferred senior debt for the minimum requirements for own funds and eligible liabilities (MREL).