Europe

Saxo Bank has announced plans to sell its first tier two bond, outlining its expectations for pricing before opening the order books.

CNP Assurances is planning to offer investors a rare green bond from the insurance sector, and the intended use of proceeds looks more worthy than some previous efforts — for example, from QBE Insurance Group. However, issuing a sustainability bond is of less relevance for insurers’ environmental, social and governance (ESG) priorities than it is for other types of issuer.

The EU’s push to improve the status of crowdfunding as a source of alternative financing will continue after summer with negotiations over new regulation. Member states would like to see prudential requirements for service providers and the ability to limit the amount retail investors can invest.

Europe's investment grade corporate bond market began the week with a hefty pack of new bond issues, as issuers were spurred on to bring deals by last week's rally and the favourable performance of past prints.

International Consolidated Airlines Group (IAG) is running a tender offer for its outstanding €500m 0.25% convertible bonds due in November 2020 and is considering replacing the CBs with new euro-denominated senior unsecured bonds.

Agence Francaise de Développement was the only public sector borrower to mandate banks for a new benchmark bond on Monday, as squeezed yields cause issuers to hold off from the primary market.

Forth Ports, the port operator with headquarters in Edinburgh, is marketing prospective US private placements this week.

UniCredit’s German subsidiary, HVB, has mandated leads for the first dollar covered bond in its 150 year history reflecting a preference to avoid issuing a negative yielding euro benchmark.

Credit Suisse has published a base prospectus for its newly set up covered bond programme, suggesting it may be ready to make a formal deal announcement in the next few days.

Mediobanca attracted strong demand on Monday for a long seven year Obbligazioni Bancarie Garantite (OBG), which offered an eye-catching yield despite pricing well through BTPs. The deal emerged as the short end of the covered bond curve plunged deeper into negative yielding territory.

Investors gained confidence from the defeat of Turkey's ruling AK Party in the rerun of the Istanbul municipal elections on Sunday. Asset prices have rallied, improving conditions for Turkish borrowers.

Skandinaviska Enskilda Banken did not have to pay a new issue premium amid favourable market conditions on Monday, after offering investors the chance to buy a new preferred senior bond.