Commerzbank

Commerzbank was offering enough of a spread for its debut preferred senior deal to be able to tap into a deep pool of pent-up demand in the euro market on Tuesday.

German issuers have wasted little time in selling preferred senior debt, after regaining access to the funding product through a legislative change last month. Berlin Hyp reopened the market with a tightly priced but thinly subscribed deal on Monday, and Commerzbank is looking to follow close behind with a debut offering of its own.

Volkswagen Leasing took advantage of the positive tone in the quiet corporate bond market to build a huge order book for its €2.5bn triple-tranche offering.

South Korea’s Woori Bank returned to the debt market on Monday, raising $300m from a Basel III-compliant tier two bond.

French laboratory testing company Eurofins Scientific and Italian tyre company Pirelli have closed Schuldscheine totalling more than €1bn in the past week.

Industrial Bank of Korea has sold its first social bond, but only after months of waiting for the market to calm.

German banks could be slow to get going with issuing preferred senior debt despite the fact that they are regaining access to the tool from next week. Issuers will have to get to a hold on how pricing for the new notes will compare with other asset classes.

The Schuldschein market is back to its active self with over 20 borrowers marketing deals. This is sweet vindication for arrangers, who’ve had to deal with concerns after borrowers Steinhoff and Carillion fell from grace at the end of 2017 and start of 2018.

Structured receivables finance is a distinct form of financing that enables companies to unlock capital tied up on their balance sheet relating to larger ticket receivables or contracts payable by their customers over time. Clients that use this structure view it as a key tool for management of liquidity and working capital, given such receivables are often less well suited to traditional forms of receivables financing, such as factoring or ABCP conduit funding

Shifting market conditions have forced Yes Bank to pay up for a quick return to the dollar loan market, after it found it difficult to woo lenders to a similar — but tighter priced — offering earlier this year, writes Pan Yue.

Unrated German mail order retailer Otto Group found plenty of demand for its debut hybrid bond on Tuesday. Order books were more than twice oversubscribed following a week-long roadshow.

The corporate bond market started the week slowly with a pair of well rated German corporates selling two year floating rate notes on Monday. Both had just a sole lead manager.