Europe

The European Central Bank is pushing for greater powers over EU-based derivatives clearing houses, according to a leaked ECB presentation obtained by GlobalCapital. The move follows a successful effort by the ECB to gain powers over foreign clearing houses.

A funding official at KfW has switched to the corporate sector.

Kernel, the Ukrainian powerhouse producer of sunflower oil and agricultural products, has boosted and extended its $200m pre-export revolving credit facility.

The leveraged finance new issue pipeline has slowed down in Europe. Market participants pointed to weak macroeconomic data, but also the recent alarms about weak covenants.

KfW mandated banks on Monday for the first euro benchmark in the public sector market from a supranational or agency in two weeks.

Italy’s government bonds rallied to their tightest spreads versus Bunds since the start of the month after S&P opted to hold its rating for the country at BBB, while moving its outlook to negative from stable last Friday. But while there may be some respite for Italy in the weeks ahead, Germany chancellor Angela Merkel’s decision on Monday to step down at the end of her term in 2021 has left analysts fretting about the overall path of the eurozone.

Österreichische Kontrollbank will complete its benchmark funding for the year with a no-grow $1bn five year. Meanwhile, Erste Abwicklungsanstalt has lined up its second dollar deal of the year in the three year part of the curve.

France’s AccorHotels has bought its Paris head office for €363m, drawing on a new green loan to finance the acquisition.

Belgium’s Ravago has amended and restated €1.65bn equivalent of syndicated loans, with an oversubscribed order book allowing the industrial materials company to increase the size of the deal.

Covered bonds have drifted wider over the last few weeks, reflecting heavier than expected supply and diminished market maker interest. Even so, the primary market is functioning healthily, boding well for prospective debut deals from Münchener Hypothekenbank and SMBC, deals that could surface as early as Tuesday.

DFV Deutsche Familienversicherung, the German insurance technology company, may be valued at up to €289m when it lists on the Frankfurt Stock Exchange in November, according to terms released on Monday.

The price of Italian bank shares and bonds rose on Monday morning after local media reported that the government was weighing up extraordinary measures to help the embattled lenders. The next few weeks are crucial for the banks, with the release of stress test results and third quarter earnings.