Europe

The last time British Telecommunications (BT) sold sterling bonds, the global financial crisis was still to strike. It returned on Tuesday after more than 10 years away, issuing in euros and dollars, but investors were not as welcoming as the issuer may have expected.

The supply of hybrid bonds continued this week, with an additional feature — both hybrids sold this week were certified as green bonds.

Croatia lengthened its euro curve this week with a €1.275bn long 12 year bond, drawing in a book of more than €3bn for the deal.

Spreads widened in the secondary market for financial institution bonds this week, crimping new supply, but senior offers on Thursday from Westpac and BNP Paribas were still able to get done.

UK-based drinks manufacturer Diageo returned to corporate bond markets on Tuesday after three years without issuing in any bond market. The owner of brands such as Guinness, Johnnie Walker whisky and Tanqueray gin opted for a three year and long six year dual tranche offering on its return.

German housing association Vonovia continued the recent trend for two year floating rate notes (FRNs) on Monday, while French pair Veolia and ALD tapped into the same pool of liquidity with three year issues on Thursday.

Single digit new issue premiums had survived the secondary market weakness in corporate bonds of the previous few days, but on Wednesday Vodafone had to pay up as it sold a three tranche deal significantly wide of where its existing bonds were trading.

UK debt collector Cabot Credit Management has abandoned its IPO on the London Stock Exchange, blaming unsupportive market conditions.

The Prudential Regulation Authority (PRA) is set to face more pressure to diverge from the Solvency II framework after the European Insurance and Occupational Pensions Authority (EIOPA) recommended no change to risk margin rules.

Theodor Weimer, the head of UniCredit subsidiary HypoVereinsbank, will replace Carsten Kengeter as CEO of exchange and clearing house operator Deutsche Boerse, it was announced on Thursday.

Banca Carige, the Genoese bank, is struggling to save its recapitalisation plan, after failing on Thursday to launch its expected €560m rights issue, leaving its future in doubt. With several Italian and Spanish banks having collapsed in the past few years, market participants will be watching this latest test of Europe’s systems for dealing with faltering banks, write Jon Hay, Sam Kerr and Tyler Davies.

Gunvor, the oil trading group headquartered in Switzerland, agreed a $1.39bn revolving credit facility (RCF) on Thursday to refinance tranches of previous loans.