Europe

Santander’s UK subsidiary became the latest British bank to issue sterling notes on Thursday. But that run could be coming to an end as investors look to have had enough.

Rating: Aaa/AAA

Rating: Aaa/AAA

A flattening and rising US Treasury yield curve may be sparking concerns of a slowdown for the US economy but it is having the opposite effect on the short end of the dollar market for public sector borrowers, writes Craig McGlashan.

BBVA told GlobalCapital it saw room for social bonds, and a mixed social and green bond, as well as more established green offerings as it revealed its new issuance framework this week. While it expects the senior non-preferred format is most likely to be used, it sees tier two as possible as well.

A resurgence in demand for short end paper lured a succession of financial institutions to the dollar market with bank level trades this week.

Mining company Polymetal has converted an existing $80m bilateral credit facility with ING into a sustainability-linked loan. It is the first loan market activity from Russia since the US announced a fresh round of sanctions against some of the country’s oligarchs.

Phoenix Community Housing, a non-profit housing association from London, has raised £60m of private debt using delayed draw.

Three CEE new issues are in the works: Bulgarian Energo Pro is hoping to print its bond as soon as Friday, Hungarian fertiliser company Nitrogénművek is looking to issue €200m with a new euro seven year non-call three bond, and Wizz Air has received its first ever credit rating, a likely precursor to a bond issue.

Investors were relieved to hear on Wednesday that Lloyds Bank had no plans to cancel its "irredeemable" preference shares at par, but those invested in the market want to clarify their position under UK law.

Turk Eximbank raised $500m with its new six year bond on Thursday. While one banker on the deal said there was some buyside reticence to get involved with Turkish risk, meaning that a higher new issue premium was required, another claimed the premium paid was in line with the rest of the market.

MUFG has started a round of redundancies in its securities business, with several jobs in London and New York said to be at risk. GIobalCapital understands that not all those who will be put at risk of redundancy have yet been notified but fewer than 35 staff will be affected.