Euro

Syndicate managers in the corporate bond market are back at their desks and ready to get the year off to a fast start, with few thinking the start to 2018 will be any different to January of last year.

Germany has announced its funding target for 2018, reducing its long term fixed-income target by €5bn from its 2017 number but aiming for a total, including short term instruments, of €183bn — up from €172bn in 2017.

Public sector debt bankers and fellow debt management office heads have lined up to praise the impact on the Italian and wider European sovereign debt markets of Italy funding head Maria Cannata, who is retiring after nearly three decades at the country’s Treasury. While universally agreeing that she would be greatly missed both professionally and personally — including her sense of humour — there was also strong confidence that the team she has put in place will be able to meet all Italy’s future challenges.

Vonovia, the German housing company, is likely to issue debt next year, to finance its €5.2bn cash offer for Austrian peer Buwog, announced on Monday morning.

Ratings agency Moody’s has said that it expects a high level of refinancing of hybrids by utilities in 2018, following €4.2bn of hybrids issued by the sector in 2017.

Maria Cannata of the Italian Tesoro, one of the sovereign bond market’s best known and longest serving funding heads, is to retire, just after the new year.

European Central Bank president Mario Draghi struck an upbeat note on the currency bloc’s growth prospects at a press conference following a governing council meeting on Thursday, but analysts still expect borrowers to enjoy supportive conditions for some time yet. The meeting — and the approaching year end — meant euro supply was thin on the ground, but Iceland did take the opportunity to return after several years away.

Rating: A3/A/A

Ireland is open to the possibility of adding green bonds to its funding mix as it looks to diversify its portfolio of debt instruments, according to the country’s head of funding.

Europe's largest property company Unibail-Rodamco announced an agreed offer of $15.7bn for the equity of Westfield Corp, the Australian shopping centre operator, on Tuesday. The deal, which valued the enterprise at $24.7bn, was the second retail property consolidation in a week as the sector comes under the M&A spotlight, writes Nigel Owen.

France is looking to syndicate an inflation linked benchmark in 2018, after announcing its funding plans for the year on Thursday.

Iceland was awash with orders on Wednesday for its first deal since 2014, which came alongside a tender offer for the sovereign’s July 2020 bonds.