Deutsche Bank

A €30bn debt exchange by Greece’s Public Debt Management Agency began on Wednesday and should help the sovereign boost the liquidity in the long end of its curve, said SSA bankers. But some warned that liquidity cuts two ways, meaning the sovereign’s levels could be more sensitive to any bad news that comes its way — although those working on the deal feel the upside far outweighs that risk, writes Craig McGlashan.

The supply of hybrid bonds continued this week, with an additional feature — both hybrids sold this week were certified as green bonds.

UK-based drinks manufacturer Diageo returned to corporate bond markets on Tuesday after three years without issuing in any bond market. The owner of brands such as Guinness, Johnnie Walker whisky and Tanqueray gin opted for a three year and long six year dual tranche offering on its return.

Banca Carige, the Genoese bank, is struggling to save its recapitalisation plan, after failing on Thursday to launch its expected €560m rights issue, leaving its future in doubt. With several Italian and Spanish banks having collapsed in the past few years, market participants will be watching this latest test of Europe’s systems for dealing with faltering banks, write Jon Hay, Sam Kerr and Tyler Davies.

Morgan Stanley’s SSA desk, which lost its head of SSA syndicate Andrew Salvoni to HSBC in August, has added a syndicate banker from Deutsche Bank.

Danish power company Ørsted has wasted no time in issuing under its new name after leaving the Dong Energy brand behind earlier in November. On Thursday the issuer sold a green hybrid and a green senior bond, as well as announcing a tender offer for its shorter dated bonds.

Gazprom this week sold its first euro denominated bond of the year, a €750m seven year, with a new issue premium that a lead manager has estimated at only 0bp-2bp.

Dalian Wanda Commercial Properties (DWCP) has put together a three-pronged plan to address problems related to its offshore loans, worth close to $1.5bn. The deal itself is giving lenders enough of a headache. But it has also put the spotlight on other loans guaranteed by onshore parents in China, writes Shruti Chaturvedi.

Investors are keeping pace with heavy issuance in the European leveraged loan market, with ticket sizes increasing in response to a rush of jumbo sized loans this week, including a $2.4bn equivalent deal from Paysafe.

Greece has fired the starting gun on its latest debt rehabilitation effort, after launching a roughly €30bn exchange offer for 20 bonds it issued as part of its restructuring in 2012.

Russian state owned giant Gazprom released initial price thoughts for a euro seven year bond on Wednesday morning at a level that bankers away from the deal said was around 20bp back of the company’s curve.

The Commonwealth of the Bahamas returned to bond markets on Tuesday with a 10 year average life deal more than twice the size of its previous largest issuance.