Europe

Yapi Kredi printed its $500m five year senior bond on Monday with a new issue premium of 20bp-25bp — a hefty but necessary concession, vindicated by the deal trading around re-offer on Tuesday.

The UK’s Prudential Regulation Authority is standing its ground over its interpretation of Solvency II amid pressure from politicians and industry bodies. But on issues ranging from insurers’ capital requirements and assets to the UK’s departure from the EU and even what the PRA’s objectives should be, there is lively debate over how a future regulatory regime should look.

Morgan Stanley issued a €400m bond on Monday, with warrants over Daimler shares, in a trade designed to give equity linked investors some much needed paper in a popular name.

Bayerische Landesbank (BayernLB) issued a €500m seven year in line with recent German Pfandbrief this week, but with a generous pick-up of 5bp compared with its own more illiquid curve.

Ukrainian chicken producer MHP is looking to lock in a lower cost of funds and reduce the cost of its liabilities with a buyback of its 2020s, combined with a new issue.

A pair of public sector borrowers are bringing short end dollar benchmarks as ever widening swap spreads support trades at that part of the curve.

The European Commission’s proposals for a principles-based covered bond directive have been broadly welcomed, but the lack of detail on assets that might be eligible for covered bonds has caused concern.

Private equity firm CVC and local investor Alba are funding their €3.8bn acquisition of 201m shares in Gas Natural, the energy group, with a €1.9bn loan, which is set to become one of the largest Spanish financial deals of the year.

Yorkshire Building Society was set to issue €500m of senior bonds on Monday, as it and other UK lenders look to replace funding from the Bank of England.

Three French banks were among six financial institutions selling unsecured bonds in the euro market on Monday morning, with BNP Paribas, BPCE and HSBC France raising €3.5bn between them.

Santander opened books on Monday on the first public additional tier one (AT1) deal since January, and CaixaBank is also lining up a transaction in the asset class.

Intesa Sanpaolo was able to raise €1.25bn of senior funding at the long end of its maturity curve on Monday, despite being the first Italian bank to access the market following the result of the country’s recent general election.