Europe

Unédic completed its funding programme for 2017 with a seven year benchmark on Tuesday, selling into a market eager for French paper. Bpifrance will look to capitalise on the same appetite after mandating for a Wednesday deal.

Dividend recapitalisation deals, like Ten Cate’s new €125m term loan, launched on Tuesday, are on the rise. The technique, considered aggressive by leveraged loan investors, is nevertheless becoming more common and accepted in the present issuer's market.

Corestate Capital Holding, the German property manager with €22bn of assets under management, has issued its first convertible bond. The five year deal was increased by €50m due to the strength of the demand.

Turkish financial institutions Garanti Bankasi and Finansbank are expected to sign their refinancing loans this week, according to bankers looking at the deals.

Liberty Living, the UK student accommodation provider, built a strong order book for its debut bond on Tuesday. It raised £500m, split equally between seven and 12 year tranches.

Eika Boligkreditt closed the pricing gap to Norway’s national champion, DNB Boligkreditt, with a €500m seven year covered bond issued on Tuesday. At the same time Finland’s Oma Savings Bank mandated leads to market its inaugural deal.

Four new investment grade corporate bond issues in euros and one in sterling ensured European investors were much busier on Tuesday than they had been on Monday.

Three European banks chose Tuesday to offer senior bonds as issuers took advantage of a period of market stability. Danske Bank and Landsbankinn HF both offered notes in euros, while National Australia Bank (NAB) issued in sterling.

European high yield primary action resumed with Heide Raffinerie on Tuesday. As a first time issuer from an industry that makes up only a small portion of the market, the deal will test conditions after recent volatility, said sources.

Paris will be the new home of the European Banking Authority, the European Council announced at a press conference on Monday evening, giving the French capital two of the three European financial regulatory authorities.

Berlin Hyp (BHH) enjoyed tremendous demand for the first negative yielding covered bond in over a year, as international real money investors took advantage of the compelling relative value on offer to pile into deal and make it one of the most oversubscribed of the year.

Nordea smashed the record for the lowest coupon on an additional tier one (AT1) in a core currency on Tuesday, as it racked up about €6bn of demand and ratcheted in the pricing from initial price thoughts by 50bp-75bp.