Europe

Sterling is set to play a bigger part in the socially responsible bond market as a result of incoming reforms that are putting the pressure on UK pension funds to focus on environmental, social or governance (ESG) factors in their investments, writes Burhan Khadbai.

One of the smallest supranational issuers has returned to the public markets for the first time since 2017 to make its Norwegian krone debut.

The State of North Rhine Westphalia was flooded with demand for its 30 year euro benchmark this week as investors braced themselves for the European Central Bank’s meeting on Thursday, in which it laid down the groundwork for a rate cut in September and additional quantitative easing.

Corporate borrowers may move their bond issuance plans to earlier dates in response to what was perceived as a dovish tone struck by Mario Draghi, the president of the European Central Bank, on Thursday.

UK capital markets are once again in flux and in the dark over the country’s future, as new prime minister Boris Johnson vowed to take the UK out of the European Union on October 31 “do or die”, write Sam Kerr, Tyler Davies and Owen Sanderson.

Investors’ fears were realised on Thursday when the Turkish central bank lowered its key policy rate by 425bp. Analysts joined them in saying that the move will provoke a return of inflation, damage the lira and complicate loan pricing.

Members of the European Central Bank’s governing council appeared to be laying the groundwork on Thursday for a tiered system of interest rate charges on bank deposits and an expanded asset purchase programme.

Deutsche Kreditmarkt-Standards (DKS), a German industry body, held a conference call with Schuldschein participants on Thursday afternoon to discuss restructuring in the Schuldschein market, and whether there is a case for a standardised collective action clause.

Boris Johnson, the UK's new prime minister, has spent most of his first week in power making life difficult for his new chancellor. Announcing big investments in transport infrastructure, health and social care in his first speech on the steps of 10 Downing Street, Johnson is already racking up the bills.

Darren Novak, head of activist defence at UBS, has moved from New York to London, with the bank seeing an opportunity to improve its service for European companies seeking to deal with activist investors.

Investors have looked towards structured and long dated notes in their hunt for yield as the summer break creeps closer.

Renewables pair bring sunshine to project finance market - National Bank of Oman launches loan syndication - Cubico lights up project finance desks - Drax completes bridge refinancing with PPs, ESG debt - Italy’s IMA raises €50m via Euro PP market