Euro

Austrian oil and gas company OMV discovered on Thursday that investors are far from finished with the investment grade corporate bond market in 2017. The strength of demand for its new nine year deal resulted in the company printing its largest ever bond.

The Republic of Iceland looks set to bring its first syndication in over three years before the year end, after mandating banks on Wednesday to run a euro trade.

On Wednesday, the euro corporate bond market reminded any doubters that it was still very much open for business with five tranches totalling €3bn being priced by three well known issuers.

Twelve deals last week led many in the corporate bond market to believe this week would be the final busy week of the year. However, the roadshow schedule is now bare and investors believe they are starting to see the end of 2017.

Hong Kong-based infrastructure company CK Infrastructure sold its first euro corporate bond issue on Tuesday, despite having owned a variety of utilities and infrastructure companies across Europe for more than seven years. The response was solid if not overwhelming.

China General Nuclear Power Corp (CGNPC) raised around $1.5bn from a dual currency, triple-tranche transaction on Monday, which included a green bond. The issuer’s ambition to raise funds at the long end of the curve meant it offered a juicy pick-up on the five-to-10 year dollar curve compared to other A-rated state-owned names.

Friday’s sharp turnaround in US sentiment left some European corporate bond players unsure as to how their market might open on Monday. But the tone turned out to be positive and US chemicals company Celanese Corp was ready to take advantage.

China Reform Holdings Corp, China General Nuclear Power Corp (CGNPC), Hong Kong’s Pearl Holding III and Shimao Property Holdings are among the issuers in the market with new transactions on Monday.

Gansu Provincial Highway Aviation Tourism Investment Group Co, a Chinese local government financing vehicle (LGFV), opted to hit the euro market to diversity into a different investor base, despite having to pay a decent premium for its debut status in the currency and a weak credit rating.

Rating: Aa1/AA-/AAA

Italian state-owned railway operator Ferrovie dello Stato Italiane sold its first green bond on Thursday.

Irish headquartered US energy technology company Johnson Controls sold the shortest corporate bond deal of the week on Tuesday, tapping into the pool of investor money looking for a safe option into the end of the year.