Europe

Peking University Founder Group Co, BOC Aviation and Yuexiu Property Co are meeting investors for their upcoming bond plans, while China National Chemical Corp’s Swiss subsidiary Syngenta is also gearing up for a mega deal.

China Resources Land bagged Rmb4bn ($635.7m) from a two tranche Panda bond on Wednesday, marking its fifth outing in the market. But the issuer had to change tack at the last minute after investor demand built up for the longer-dated note.

A break in the mood of negativity in the credit markets on Thursday brought out UBI Banca to issue its first senior non-preferred bond, in a deal sensitively managed to try to ensure secondary market performance. Other issuers are being urged to strike when they can rather than sit back.

Société Générale picked its spot for a new additional tier one (AT1) bond this week, as bank jostle for position in a market that is increasingly being characterised by 'good' and 'bad' windows for issuance.

Covered bonds issued this week by Compagnie de Financement Foncier (CFF), ABN Amro and ING Bank offered premiums well in excess of any other seen this year. The three deals repriced the secondary market and set a pattern that is likely to become more established over time.

Bondholders involved in the resolution of Banco Popular have turned their attention towards US courts in an effort to extract further information from Santander, the bank’s new owner.

Aegon plans to use proceeds from an $800m tier two deal it sold on Wednesday to redeem grandfathered subordinated debt.

Rating: Aaa/AAA/AAA

Moody’s trimmed its ratings for Barclays and Royal Bank of Scotland this week, citing concern about the impact that ring-fencing regulation could have on the banks’ creditors.

This week, Permira Credit Solutions III (PCS3) signed its seventh investment this year, a credit line for the acquisition of Maxicoffee by Daltys. The direct lending market seems on course to surpass last year’s record numbers, said market sources.

As negotiations over the future of Italy’s government begin in earnest, investors appear to be betting that political risk for the country has been overestimated.

Speculative grade borrowers stayed on the sidelines of the primary market this week. While bankers said the deal pipeline has a healthy list of issuers ready to go in April, investors warned that they might be pickier than in the first quarter.