Europe

The green OAT issuance programme of France involves a cost to the issuer, but this has so far been compensated for by the slightly cheaper funding France can get by issuing green bonds.

Tata Steel is in discussions with lenders for a $2bn borrowing to fund a proposed expansion in India and take out some debt raised by its European unit, said sources.

Holders of the rights auctioned in the rump sale after Banca Carige's rights issue have subscribed for only €22.8m of the €167m of shares available to them. The largest shareholder has 12 hours to exercise an option to buy €69.5m of the remainder.

Marguerite Bérard-Andrieu is leaving BPCE, having been chief executive for a year and a half. The bank's board has appointed François Riahi to replace her, from the new year.

The European Commission has proposed to make new rules for investment firms, bringing systemically important institutions under tighter supervision.

NAC Aviation 29, a subsidiary of Danish aircraft lessor NAC Aviation, has raised its first Schuldschein. The first drawdown of the debt is expected before new year. Many in the market had doubted the deal would get done.

The people of Catalonia will on Thursday vote in a snap regional election called following the independence referendum earlier on October 1, which caused the Spanish national government to take control of the Catalan parliament.

The vast majority of credit institution debt held in Greece, Spain, Italy and Portugal comes from domestic issuers, suggesting that market capacity for debt meeting their minimum requirement for own funds and eligible liabilities (MREL) may be limited, the European Central Bank (ECB) said in its latest macroprudential bulletin.

Chelyabinsk Pipe-Rolling Plant, the Russian steep pipe maker, has signed a €150m unsecured syndicated loan, the eighth from Russia this year.

Dealogic could be one of the last leveraged loan deals to close in 2017. With allocations of its dividend recapitalisation loans due on Friday, the deal is likely to cap what has been an all-time record year of issuance in the European leveraged loan market.

On Tuesday, ratings agency Moody’s announced it was changing its outlook to negative for four UK based water utilities and affirmed its existing negative outlook on two others.

Top emerging market bond investors are warning that making strong returns will be much more difficult in 2018, as elections and interest rate risk introduce more volatility into the markets.