Citi

The European block trade market exploded into life on Tuesday evening with five deals executed, as opportunistic issuers tapped investors while this year's European Central Bank-fuelled stock market rally continues.

General Electric became the latest US issuer to hit the euro bond market with a multi-tranche deal on Wednesday. The bond was issued by GE itself, not GE Capital.

Eurofima is set to become the latest issuer to sell in dollars this week, with what will be its first deal in the currency since a $1bn three year in May 2010.

Radiotelevisione Italiana (RAI), Italy's state broadcasting company, sold its debut bond issue on Tuesday, with a healthy spread over Italian government debt allowing it to gather a hefty book for a sub-benchmark print.

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Aviva is considering an extra tranche of subordinated debt even longer than the 30.5 year non-call 10.5 it has already hired banks to sell, while a Norwegian insurer has also mandated in euros.

Public sector issuers underlined the strength of demand in the dollar market this week as issuers were able to get benchmarks away despite volatility in US Treasuries.

Industrial and Commercial Bank of China (ICBC)’s Singapore branch showed that good deals can come in pair, when it sold a $400m three year deal on May 19. That trade priced just one day after its Dubai branch made a successful debut in the international bond market.

Despite last week’s high profile and galling cancellations of two IPOs, new flotations continue to move toward Europe’s equity market, and investors are showing plenty of appetite for deals they like.

A burst of block trades hit the European market today, most of which met eager demand, starting with a daytime deal to raise new capital for DCC, the Irish sales, marketing and distribution group, which is buying a French fuel business from Shell.

Illinois Tool Works, the US machinery and components maker, issued its third euro bond on Tuesday, taking what bankers away from the deal judged a “conservative” approach by selling eight and 15 year tranches.

The public sector dollar bond pipeline for Wednesday is filling up, with a series of issuers set to follow a three year dollar benchmark from the European Investment Bank on Tuesday.