Europe

A tough quarter scuppered Goldman Sachs's strategic update but the bank places deeds before words and is already well advanced in its new strategy, writes David Rothnie

The balance of supply and demand in Europe’s corporate bond market has favoured issuers this year, leading to a remarkable tightening of spreads, and is set to stay that way for two more weeks, bankers believe, as issuance will be intermittent.

Credit Suisse was first off the blocks among big European investment banks in releasing its first quarter results on Wednesday. While trading revenue was strong, underwriting and advisory revenues disappointed, compared with US peers.

Cyprus received strong investor demand for its longest ever bond on Wednesday, with the combined order book for the dual tranche trade topping €10bn at the final terms.

Région Wallonne is moving forward with plans to sell its first bonds in benchmark and sustainable format, with initial price thoughts announced on Wednesday for new seven and 15 year bonds.

The Energy-Efficient Mortgage (EEM) initiative took another important step towards its objective of delivering a standardised European framework on Wednesday, with an event in Latvia bringing together various sponsors to discuss plans for the market’s development.

French IPOs could return before the end of the year, with two large listings being prepared for as early as the second half of 2019, according to sources.

Société Générale has issued the first covered bond as a security token on a public blockchain last week.

Crédit Agricole became the latest European bank to tap into strong demand for long-dated covered bonds in euros, raising €1.25bn of 15 year funding on Wednesday without paying a new issue premium to investors.

The Development Bank of the Republic of Belarus has released initial price guidance for its Eurobond debut at 7% area for a five year Reg S/144A dollar bond. A banker away from the deal called the level fair.

Finablr, the Abu Dhabi-based cross-border currency and financial technology holding company which owns Travelex, is one of the few firms in the market with a live IPO. But banks are not rushing to set a price range, wanting to give investors more time to value the business.

Terminal Investment Limited (TIL), a port operator headquartered in the Netherlands with terminals in 21 countries, has launched a US private placement (US PP) transaction in euros and dollars.