BNP Paribas

Europe’s corporate bond market burst into full scale action today, after two weeks of sporadic new issuance. A €3bn deal from Sanofi, the French pharmaceuticals company, was joined by €1bn from Toyota Motor Credit Corp, €500m from property company Foncière des Régions and yet another small deal from Volvo (see separate story).

High yield cash investors have been seen setting up new hedges in iTraxx Crossover, with popular strategies including bearish risk reversals and payer spreads.

Bookrunners on Korea Development Bank (KDB)’s most recent bond have been scathing about the borrower’s approach to pricing and deal execution. And the complaints look to have a strong basis with the trade selling off aggressively in secondary market trading.

Bankers, investors and issuers alike have been keen to sing the praises of green bonds and other socially responsible investments during 2014. Nevertheless, the largest and most successful bond issue in Swiss francs this year — a Sfr1bn triple tranche from British American Tobacco, sold on Monday — came from a much-criticised industry.

The Coca-Cola Co, the Atlanta-based multinational soft drinks producer, has named bookrunners for a possible euro bond. Unlike some of its related bottling companies, Coca-Cola is a very rare issuer in euros, with no deals outstanding.

Danish lender Nykredit Realkredit mandated banks on Tuesday morning for a new five year floater. An attractive spread over Euribor continued a trend of issuers offering enticing premiums this September.

British cigarette maker Imperial Tobacco has secured financing for its $7.1bn acquisition of brands from Reynolds American, and refinanced its existing revolving credit facilities.

Mobile phone maker Xiaomi has opened its $1bn dual tranche loan into general on Tuesday afternoon, after cementing a bookrunner and mandated lead arranger group of 20 banks.

Bankers adopted a more tactical strategy for Korea Development Bank’s new 5.5 year, choosing to announce the deal in the Asian afternoon on September 2 in a bid to focus more on US investors. However, demand has not lived up to expectations in the face of competing market supply and tight Korean credit spreads.

Arcelik, a Turkish home appliances and consumer electronics company, has mandated BNP Paribas, Citi and HSBC for a euro-denominated Reg S bond. The deal will mark the first ever bond in the currency for a Turkish corporate.

You do not spend just short of two decades in two of Europe’s top debt capital markets syndicate teams if you crumble under pressure.

BMW reopened the European benchmark investment grade corporate bond new issue market on Tuesday with a punchy €1.75bn deal that sent a strong signal: spreads — and especially yields — for corporate issuers are set for a very tight autumn. BMW paid a coupon of just 0.5% on its €1bn four year tranche. But despite these pitifully thin yields, investors are eager to buy.