BNP Paribas

Brazil’s Odebrecht Oil & Gas this week roused the LatAm dollar bond market from a new issue lull that lasted nearly three weeks.

Issuance of European subordinated FIG debt hit its highest year-to-date level since 2007 this week, as tier two debt wrested the limelight back from senior unsecured with a small but solid deal from Swedbank and a €5bn book for ING.

Credito Emiliano’s €750m five year has earned praise for its tight pricing, but it was demand from outside the eurozone, including from Asia and Switzerland, that suggests Italy’s recovery story is gaining traction.

Corporate bond issuance is set to get busier again in Europe next week, bankers say, with a drive-by deal also possible on Friday.

ThyssenKrupp launched a drive-by 5.7 year bond today (Wednesday) that attracted a book of more than €5bn, showing the keen demand for crossover credit.

Investors piled into ING’s issuance of tier two debt on Tuesday, with lead managers building a €5bn book for the €1.5bn deal. But despite a strong pipeline building in additional tier one, tier two debt is not expected to be quite as busy.

Darty Financements has released price guidance for its €250m debut high yield bond. The UK-listed electrical retailer with large operations in France aims to price its seven year bond this afternoon.

Subordinated debt issuance this week hit its highest year to date volume since 2007, and for the first time this year it actually felt like it, with two tier two deals hitting the market and breaking the dominance of senior unsecured. Covered bonds were also busy, with five deals, and while senior was quieter, it was still active, with Banco Comercial Português returning to the market on Wednesday.

ING followed Swedbank into the tier two market on Tuesday, printing a tight €1.5bn 12 year non-call seven deal as tier two debt stole the limelight from senior unsecured for the first time this year.

Swiss syndicate bankers are expecting a renewed surge of emerging market issuance in the near future, with Indian issuer Bharat Petroleum and Brazilian financial Banco Safra both mandating for roadshows next week.

Emerging markets-focused miner First Quantum has launched a $2.5bn syndicated loan into the market, and is already attracting lenders new to the name.

Euro deals attracted cash from fresh sources this week, boosting book sizes in what was a bumper week for borrowers in Europe’s core.