Europe

Public sector borrowers are pouring into the three year part of the dollar curve after a series of issuers printed strong deals in the tenor last week.

The Index Industry Association on Monday revealed that its members administered about 3.29m indices around the world, with more than 95% of those referencing equities.

Investment grade loans bankers are ready to stump up big tickets for bridge loans, and deals are coming their way. Sanofi, the French pharmaceutical group, is readying an $11.6bn debt-financed acquisition of Bioverativ, the blood disorder treatment company, and banks are set to launch at least one other M&A loan into syndication this week. Michael Turner reports.

Belgian cybersecurity firm Securelink, Greek cement group Titan Cement and US storage provider Algeco announced new high yield bonds totalling €1.6m on Monday, as talk of potential spread widening grows in the European high yield bond market.

On Monday, Italian tyre company Pirelli returned to the bond market for the first time since its IPO. With no other investment grade deals in the market, the new five year transaction saw strong investor demand and 40bp of tightening from initial price thoughts.

Crédit Agricole Assurances caught market participants’ attention with a new tier two deal on Monday, gathering orders of close to €5.1bn.

Groupe BPCE drummed up €1.75bn of non-preferred senior funding on Monday, as part of a plan to issue €4bn-€5bn in the asset class this year.

IKB Deutsche Industriebank, an unrated German financial institution, was selling tier two capital in the euro bond market on Monday.

Petkim Petrokimya Holding brought the first high yield corporate trade from Turkey since 2014 last Friday, raising $500m with a sub-6% coupon.

Despite mounting evidence of falling Swedish house prices and the likelihood that orders were lost at the re-offer spread, Swedish Covered Bond Corporation (SCBC) issued its tightest covered bond on Monday.

The Republic of Belarus is considering reopening its $600m 7.625% 2027s, according to a source with knowledge of the matter, after a strong rally that has made them the best performing hard currency bonds in CEEMEA in the last six months.

Instone Real Estate Group, the German housebuilder, plans to go public on the Frankfurt Stock Exchange in February, having filed an intention to float document on Monday.