Deutsche Bank

Corporate bond issuance is set to get busier again in Europe next week, bankers say, with a drive-by deal also possible on Friday.

IT firm Atos is set to list Worldline, its payment and transactions services firm, towards summer.

GTT, the LNG membranes firm, began bookbuilding on a €675m IPO on Monday, hoping that it could capture demand as investors move into more defensive stocks. The deal was covered on Tuesday.

The Australian RMBS primary market has hit its stride, with Bendigo and Adelaide Bank bringing a A$500m Torrens RMBS, making it three deals out of Australia in as many weeks.

ThyssenKrupp launched a drive-by 5.7 year bond today (Wednesday) that attracted a book of more than €5bn, showing the keen demand for crossover credit.

Sberbank printed $1bn of subordinated debt at a price that three syndicate managers away from the deal called "very aggressive". But after being priced at par, the note was trading at 99.75-100 on Wednesday morning, indicating that the leads were right to push it.

Political developments helped shape the near and long term picture in the European sovereign debt markets this week, as a change at the top of the Italian government pushed the country’s secondary yields down near record lows — providing superb conditions for when the Italian treasury decides to come with a first syndication of the year. Meanwhile, the UK granted the devolved Scottish government bond issuing powers from the 2015-2016 financial year.

Caribbean hotel operator Playa Hotel & Resorts tapped its Caa1/B rated bonds well above par on Tuesday, showing that appealing to the US high yield community can outweigh EM investor scepticism for some borrowers.

GazTransport & Technigaz's (GTT) €675m IPO was covered on Tuesday, the day after bookbuilding began. Bankers hoped the deal could capture demand as investors move towards defensive stocks.

ING followed Swedbank into the tier two market on Tuesday, printing a tight €1.5bn 12 year non-call seven deal as tier two debt stole the limelight from senior unsecured for the first time this year.

Sberbank has released price guidance of 5.625% for a 10 year non call five subordinated deal that bankers away from the deal are calling a “fair” level. But market participants on and off the deal say that the clarification of point of non-viability language has made little difference to the pricing of the bond.

Swiss syndicate bankers are expecting a renewed surge of emerging market issuance in the near future, with Indian issuer Bharat Petroleum and Brazilian financial Banco Safra both mandating for roadshows next week.