Europe

Deutsche Bank avoided senior unsecured and subordinated bond markets, where its paper has widened considerably, to raise €500m of seven year covered bond funding on Wednesday. The bank paid virtually no new issue premium.

The International Organization of Securities Commissions on Tuesday urged its members to “improve the practices” of firms offering complex derivatives to retail clients as it opened a consultation on the matter to the public.

Macquarie is set to issue in euros for the first time since 2015 as it looks to re-engage with investors in that currency. It will also be the first time it has issued at the group level in euros.

Borrowers have returned to the FIG primary market, but investors are hoping for greater new issue premiums.

GTLK, Russia’s state transport leasing company, on Tuesday postponed its dollar Reg S seven year amortising bond, blaming “broader market volatility” for the move. But investors looking at the note said the postponement was more a sign of the buyside becoming more discerning.

ANZ equalled a record €750m deal size with its first ever sustainable bond on Wednesday, as bankers said that the market was wide open for deals in more defensive formats.

The bond markets have been muted in their response to last week’s equity market volatility. Corporate bond investors did not suffer the heavy losses or wild intraday swings their equity peers had endured, leaving them to focus back on fundamentals.

The European Central Bank’s corporate sector purchase programme maintained its rate of purchasing in the first six weeks of 2018, which helped support spreads through the recent period of volatility in global markets.

Galliford Try, the UK construction company, has announced a £150m capital increase to help cover costs related to the collapse of Carillion in January.

The Autonomous Community of Madrid on Tuesday printed its largest ever sustainable bond — and its biggest bond of any kind in three years — with a trade that was double the size of its SRI debut last year. Bankers away from the trade hailed the “excellent” result, with one saying it was “probably as good a result as the issuer could have hoped for”.

Following an €8.1bn state bail-out, Banca Monte dei Paschi di Siena still has its work cut out in putting ticks in the boxes of its 2021 restructuring plan.

Sources have said 3i plans to follow a buy-and-build approach with the newly acquired Royal Sanders, the Anglo-Dutch personal care product manufacturer. The strategy would mirror its successful expansion of drinks bottling company Refresco, which sparked a bounty of deals in the high yield and leveraged loan markets.