BNP Paribas

E.On has opened a new era. While several investment grade companies have printed bonds at negative yields before, few have come close to the -0.149% at which the Baa2/BBB rated German power company reached with the five year wing of its €1.5bn dual tranche deal on Wednesday.

Europe's bond market reopened for the autumn issuance season this week — but it is a new bond market. The summer's queasy bout of bearishness has pushed government bond yields to unprecedented lows and these are now for the first time being tested as a platform for private sector bond issuance.

Market participants expect more banks will now want to print Kangaroos after investors on a search for yield poured into UBS's additional tier one (AT1) deal on Tuesday. The syndication, which surprised those involved after it managed to shave 75bp off its initial pricing guidance and attract A$4bn ($2.71bn) of orders, suggested a market ripe for a deal spree.

Banks like Goldman Sachs have positioned corporate broking as part of a wider, integrated offering to clients — a strategy that appears to be the future of this traditional UK line of business, writes David Rothnie.

E.On, the German electricity company, ended Europe's summer lull in investment grade corporate bond issuance on Wednesday, and opened a new era in pricing, with the first ever five year bond at a negative yield. And E.On is only rated triple-B.

The first investment grade euro corporate bond since Daimler's €3bn four trancher at the beginning of August appeared on Wednesday morning. E.ON, the Baa2/BBB rated energy company, is in the market with a debut green bond — a benchmark five, and 10.5 year dual tranche deal.

UBS sold an Australian dollar additional tier one capital note on Tuesday, surprising those involved after it managed to shave 75bp off of its initial pricing guidance on the back of a A$4bn ($2.7bn) orderbook. Market participants expect more banks will now want to look at the Kangaroo market for capital issuance, with BNP Paribas having also launched an AT1 in the currency last month.

The US corporate bond market continued to crank out investment grade deals despite fears of a global recession battering risk assets this week.

The UK’s Peabody Trust has signed a £75m sustainability-linked loan from BNP Paribas, as competition for UK housing association lending ramps up.

Germany’s Dürr has signed a €750m sustainability-linked loan using blockchain technology, as the mechanical and plant engineering firm continues its push into sustainability refinancing that started with a green Schuldschein.

GlobalCapital has published the nominations for its Sustainable and Responsible Capital Markets Awards. The winners will be announced on September 17, at our Awards Ceremony in Amsterdam.

SNCF Réseau steamed ahead with a new century bond issue this week, its second and largest deal to date, amid declining rates that has seen more and more investors take a risk at the ultra-long end in return for yield pick-up.