Currencies

China's Guodong Network Communications is seeking a debut loan of up to €150m ($170m) in syndication.

KfW mandated banks on Monday for the first euro benchmark in the public sector market from a supranational or agency in two weeks.

Italy’s government bonds rallied to their tightest spreads versus Bunds since the start of the month after S&P opted to hold its rating for the country at BBB, while moving its outlook to negative from stable last Friday. But while there may be some respite for Italy in the weeks ahead, Germany chancellor Angela Merkel’s decision on Monday to step down at the end of her term in 2021 has left analysts fretting about the overall path of the eurozone.

One of the three major Portuguese football clubs has announced plans to sell a new corporate bond. Sporting Lisbon is set to refinance its borrowing for a third time, having sold its first issue in 2008. However, the club has been through a particularly troublesome period on and off the pitch.

China Merchants Loscam has closed a $302m dual-currency club loan, making a comeback to the offshore market after a five-year absence.

China and Japan confirm details of currency swaps and plans to invest more in third party markets, the Hong Kong Monetary Authority (HKMA) renews the license of nine authorised institutions as Primary Liquidity Providers (PLPs) for the CNH market in Hong Kong and Singapore sets up new government agency to bridge the funding gap facing Asia’s infrastructure projects.

Rating: B2/—/B+

The European Central Bank made clear on Thursday that it will not be Italy’s doting aunt to the European Commission’s disciplinarian parent after the latter dumped the sovereign on the naughty step by rejecting its budget plans this week. Some investors warned that while Italy’s problems are contained for now, further antagonism between Rome and the eurozone’s authorities raises the risk of a junk rating for Italy and contagion to other markets.

The hefty chunk of SRI bond supply from the public sector in the second half of the year shows no signs of slowing down, with plenty in the pipeline — including from a debut issuer.

Tunisia raised €500m of five year paper on Wednesday with a 144A/Reg S benchmark.

The Flemish Community of Belgium will meet investors in November to showcase its new sustainability bond framework, with a trade likely to follow.

The Central Bank of Tunisia, on behalf of the sovereign, hit the market on Wednesday morning to print a five year euro benchmark.