BNP Paribas

Public sector borrower supply is beginning to trickle through after a volatile Monday, but bankers are warning that market conditions are far from perfect — and some issuers are still unwilling to take a chance on a deal.

Australia and New Zealand Bank issued its first euro-denominated covered bond in two years, but with less favourable market conditions investors have become more hesitant, and the deal attracted less than half the demand of one issued two months earlier by its New Zealand subsidiary.

Banco Santander Chile has responded to a reverse enquiry by printing a Sfr125m ($125m) May 2025 bond. Riding off Chilean reputation in the Swiss market, and a scarcity of LatAm offerings this year, the lead managers kept the tickets tightly priced.

Banca Monte dei Paschi di Siena laid out the terms of an offer to retail bondholders to swap their subordinated debt for equity this week. High participation in the liability management exercise is essential if the bank is to complete a planned €5bn capital increase and avoid being placed in resolution.

Potential lenders to the Z4.8bn loan for the leveraged buyout of Polish firm Allegro will meet in Warsaw on Thursday where the deal will be launched into general syndication.

In the midst of an aggressive EM bond rout, Egypt was given a much needed boost after the International Monetary Fund approved a three year $12bn loan on Friday.

Ceská telekomunikacní infrastruktura (CETIN) added to the trickle of EM bonds expected before year end on Monday and met investors this week for a euro denominated bond. The BBB rated issuer is hoping to benefit from demand from both EM and high grade corporate accounts.

French banks could be free to issue tier three capital this month, as a new law establishing terms and conditions for the new asset class enters the final phase of the country’s legislative process.

The European subsidiary of US commodity trader Louis Dreyfus is refinancing a $800m dual tranche credit facility after increasing its Asian credit facility earlier in the year.

South Korea’s Shinhan Bank is gauging investor interest for a dollar tier two subordinated bond, its second since it debuted in the bank capital market in March.

Equity specialists marvelled again this week at the capacity of markets to surprise, as despite a strongly held consensus that shares would tumble if Donald Trump won the US presidency, the New York stockmarket actually rose.

Donald Trump may have pledged to “make America great again”, but his election as US president this week could also make 10 year dollar benchmarks trade again.