Europe

Portuguese insurance firm Fidelidade is looking to raise tier two capital. It is the latest in a line of less familiar issuers in the sector.

The third week of July finally saw the summer lull kick in, with SSA issuance volumes at less than half of what was sold last week. But Bank Nederlandse Gemeenten still managed to snatch up a successful tap, and SSA bankers and issuers reckoned the market still bodes well for new issues.

Issuance in Europe’s equity-linked market is likely to remain stagnant for the rest of the year as long as there is no rapid uplift in rates and the high yield bond market holds up. The US meanwhile continues put all other markets in the shade as total volume powers to its strongest year since 2007.

The UK mid-market IPO, an often overlooked corner of the EMEA ECM galaxy, has had a good year despite the chaos surrounding the UK’s exit from the European Union. Many expect that to be the case even after Brexit given the market is a rich source of companies with strong growth profiles.

Conversations about global events in the Schuldschein market are a rarity. In fact, a source of pride for Schuldschein participants is that their market is sheltered from the world, and there is little need to dwell on geopolitics. But there is one global event the Schuldschein market can’t avoid thinking about — a trade war that circles around the automotive industry.

The European Commission is expected to redraft two articles of its proposed covered bond directive (CBD), pushing back the legislation, and if there are any more hold-ups the directive could be delayed until 2020 or later, said analysts at Crédit Agricole.

Germany’s Scout24 has signed bank facilities totalling €1bn, with the digital marketplace operator shedding millions off the interest payments owed under the bank funding being replaced.

Germany’s Emsland Group has signed a €150m five year bank facility, with the food processing company using the same bank group as its last loan outing.

Electricity network operator Terna has sold the first investment grade corporate bond from an Italian issuer since the formation of the country’s new government and was rewarded with an order book that was more than 5.5 times subscribed, demonstrating an investor base that is open to Italy risk once more. Nigel Owen reports.

UBS has continued to shake up its global equity capital markets leadership team with Gareth McCartney taking the role of head of EMEA cash ECM and global head of syndicate.

Bad governance and management is a key cause of failures and near misses among insurance firms, the European Insurance and Occupational Pensions Authority has found, in a report released this week. The body has previously called for a harmonised approach to resolution and recovery.

Only a fraction of European banks are expecting to raise more subordinated debt, according to the European Banking Authority’s latest risk assessment questionnaire, with needs in these asset classes having fallen off a cliff since the end of 2016.