Europe

Public sector borrowers in the euro SSA market received strong demand in both the short and long ends of the curve on Tuesday. KfW took advantage of the blistering conditions to sell its first euro benchmark with a three year maturity since 2015, while Société du Grand Paris (SGP) sold its biggest ever bond.

UK medical equipment manufacturer Smith & Nephew has agreed to buy US firm Osiris Therapeutics using cash and debt, as consolidation in the healthcare sector continues to provide one of the few bright spots for M&A activity this year.

The largest block trade of 2019 so far — a €1.5bn stake in Dutch payments firm Adyen — flew off the shelves on Monday night, as large long-only accounts, mostly from the US, bought big slices of it.

Danske Bank attracted impressive levels of demand for its debut green bond on Tuesday and managed to price the deal flat to fair value. Market participants said that green-specific accounts will have helped the transaction gain momentum, even if funds with environmental, social and governance (ESG) mandates are still smarting over the bank’s alleged involvement in a high profile money laundering scandal.

Lufthansa, the German airline, entered the Schuldschein market on Tuesday, only accepting orders from lenders bidding via tech platform, VC Trade.

Norwegian Air Shuttle, the Norwegian airline, has priced its heavily discounted Nkr3bn (€308m) rights issue receiving a high take-up from shareholders, despite safety concerns over some of its fleet and heavy shorting of the stock.

UniCredit raised €1bn of additional tier one (AT1) capital on Tuesday without paying a premium to its investors. It had been encouraged to open a new deal after the financial institutions bond market jumped in the run-up to a series of votes on Brexit by the UK parliament.

Credit Bank of Moscow (CBM) is going on the road to promote a dollar loan participation note, returning to its usual external funding currency after a flirtation with euros in February.

Garanti Bank, Turk Eximbank and Ziraat Bank have begun refinancing one year loans, according to two loans bankers. Pricing is said to be in line with Akbank, which launched a refinancing in early February.

UK covered bonds have begun to perform in the secondary market, with investors spying opportunities to pick-up good relative value and sound fundamental protection. But UK issuers have been notable for their absence in euros this year due to continuing uncertainty around the outcome of Brexit.

Two multi-tranche triple-B euro bond offerings are on the way, from European countries, each with an unusual credit history. Abertis Infraestructuras is roadshowing all this week to refinance the bridge loan from its takeover by Atlantia and ACS, while Schaeffler is bringing its first bond as an investment grade issuer.

Société du Grand Paris (SGP) mandated banks on Monday for its second benchmark green bond, following its debut last October. Meanwhile, KfW hit screens for a long three year benchmark, the agency’s third benchmark in euros this year.