Europe

Investors piled into deals for Spain and Italy on Wednesday despite the miniscule yields on offer, as the spectre of further easing of monetary policy looms large over the market.

It took just over two hours on Wednesday morning for the IPO of Trainline, the UK transport booking website, to get covered after the company opened the books on its £630m IPO on the London Stock Exchange.

The Republic of Croatia launched its €1.5bn 10 year bond on Wednesday afternoon in London from a book of €6.4bn at a level 7bp inside of fair value, according to a lead manager on the note.

TBC Bank, Georgia’s largest bank by assets, loans and deposits, has set the size for its debut dollar bond at $300m and order books for the deal are already well over that amount.

OP Corporate Bank offered sold a senior non-preferred bond in euros on Wednesday, the whose success of which surprised market participants with its pricing and demand of more than three times the deal size. Oberbank also went to market with a senior preferred bond that did not attract as much demand.

BBVA’s corporate and investment bank has appointed Roberto Vila as global head of equity. The new hire comes from Commerzbank’s equity markets and commodities (EMC) unit, which is in the process of being transferred to Société Générale.

GeoProMining printed its $200m five year bond on Wednesday and a banker on the deal said the success of the note was a further sign of how much more comfortable investors have grown with Russia credit.

BBVA and Santander came to the euro-denominated FIG market on Wednesday to make use of favourable conditions, proving that it is deep enough to digest supply from two issuers from the same country. Both banks priced their deals close to or at fair value.

Rabobank is set to open order books for a two-part euro covered bond that takes advantage of the demand for higher yielding debt with the inclusion of a 20 year tranche. At the same time Coventry Building Society is planning a seven year in euros.

The Republic of Lithuania has set spreads on its 10 year and 30 year euro bonds having crunched 10bp from initial guidance.

Austrian lender Bawag took pride of place among four covered bonds issued on Wednesday with its ultra-long deal being the most subscribed and the first to close order books. The transaction drew more demand than a much larger and barely subscribed seven year from Royal Bank of Canada and brought in twice as many orders as other deals from SP Mortgage Bank and Aareal Bank.

If the date of one major capital markets event in Russia is anything to go by, the locals have given up on attracting US investors all together.