Commerzbank

Credit Bank of Moscow has succeeded in signing an international loan of up to $500m in the last few days, despite tensions over Russia's annexation of Crimea. But although 17 banks joined the deal, it was not an easy ride.

Volkswagen Financial Services jumped into the euro bond market on Tuesday for a big deal, raising €1.5bn in a sale that demonstrated its pragmatic approach to pricing and the stability of demand for Volkswagen’s paper.

mBank closed a successful €500m five year bond this week. The issuer trades too tight for some emerging market accounts and is not a natural choice for investment grade buyers. But it drew enough demand from both groups to price an oversubscribed bond with only a minimal new issue premium.

Noble Group, a supplier of agricultural and energy products, metals and minerals, hit the market on March 24 with a $1.35bn 364-day revolving loan facility, led by an 18-member arranging group.

Polish financial mBank started execution on a senior unsecured bond on Monday morning. The Commerzbank subsidiary is aiming to attract investment grade and EM investors into the deal, it's first since a rebranding late last year. But the outlook for more traditional CEEMEA supply was uncertain, said debt bankers.

MOVES IN BRIEF

National Bank of Canada extended its euro curve by two years and priced its second euro covered bond, a €1bn seven year benchmark, on Tuesday. It looked cheap versus its previous deal, but fair value to where other Canadian transactions were trading on Tuesday.

AIB Mortgage Bank enjoyed a stellar response to its first covered bond of the year. The deal attracted the highest level of oversubscription for any Irish covered bond since the Irish government’s bail-out of its banks, pricing with a double-digit spread over mid-swaps, and with no new issue premium.

Crossover credits ArcelorMittal and Fiat took advantage of a strong market to sell five and seven year euro benchmark bonds on Tuesday.

RCI Banque, once a frequent issuer of declining credit quality whose bond issues aroused little excitement among investors, returned to the market today after a 10 month absence and was greeted like a long lost friend.

ArcelorMittal raised €750m of five year notes today, in its first bond issue since announcing the call of its hybrid bond in January.

CEE sovereign issuers are standing firm this week, boldly pressing on with their bond issuance plans despite President Vladimir Putin's draft bill approving Russia's annexing of Crimea and the sanctions imposed on Russia by the US and the EU.