Europe

A quartet of public sector borrowers placed paper in the Australian dollar market this week. Two European SSAs priced sustainable and climate awareness bonds: the European Investment Bank priced its third climate awareness Kangaroo on Tuesday, while Bank Nederlandse Gemeenten brought its sustainability bond programme back to the Aussie market on Wednesday. Meanwhile, a pair of agencies raised funding in Australian dollars on Thursday: Export Development Canada and Eurofima both tapped Kangaroos.

A rough day for the corporate bond market on Wednesday did not bother Illinois Tool Works, which pressed ahead with its three tranche euro bond issue anyway. Focused on the yields, it did not mind paying higher spreads. Bankers said this was typical of the continuing wave of Reverse Yankee issuers.

The UK equity capital market showed its robustness this week with deals well-received amid political crises that show no sign of abating. Bankers are focused on bringing equity stories that can succeed despite the turmoil of Brexit, aware that investors will be selective and more are turning underweight on the country, writes Sam Kerr.

The City of London Corporation, via its endowment fund ‘The City’s Cash’, is set to enter the US private placement (PP) market for the first time. The funds will be partly used to finance the consolidation of the Billingsgate, Smithfield and Spitalfields wholesale food markets at a new site in Dagenham, Essex.

A pair of agencies raised funding in Australian dollars on Thursday: Export Development Canada and Eurofima both tapped Kangaroos.

Representatives of the European Union’s 28 member states have resumed talks on a clearing house (CCP) resolution, with a view to reach an agreement by the end of the year.

Commerzbank is expanding its investment banking business as it doubles down in its domestic heartland, writes David Rothnie.

Siberian Coal Energy Co (Suek) is set to finally close a loan refinancing next week after a lengthy syndication process that bankers close to the deal blame on a growing number of lenders declining to finance coal-burning activities.

Portugal sold its long-awaited debut Panda bond on Thursday, becoming just the third European sovereign and the first from the eurozone to tap China’s bond market.

A sharp fall in Bund yields and swap rates has heightened the search for better returns. Bankers have been quick to tout covered bonds that pay a spread above mid-swaps as the answer to rates investors' troubles.

GeoProMining Group, a mining company operating in Russia and Armenia, announced its first ever bond on Thursday — a Reg S dollar five year.

Issuers will be hoping for better conditions than what has been seen this week, as four of them head out on roadshows on Monday.