Europe

Aegon Bank smashed through the mid-swaps flat barrier to price its first conditional pass through (CPT) covered bond substantially below the reference rate on Tuesday. The deal’s success implied that investors saw through the weakness of the structure to the strong credit, or that they have lost their capacity to price extension risk.

Russia’s state owned GTLK is holding investor update meetings on November 27, with the transport leasing company picking three banks to arrange the event.

Danske Bank extended its covered bond maturity curve by more than five years on Tuesday, breaking with tradition to price in line with where SEB recently issued.

Austrian lender Raiffeisenlandesbank Oberösterreich (RLB OÖ) issued its first unsecured deal on Tuesday — and plans to bring one or two more benchmark transactions in covered or senior next year.

Globalworth Real Estate Investments, the Aim-listed real estate investment trust focused on central and eastern Europe, plans to raise around €300m of fresh equity, and is preparing to move to the main market of the London Stock Exchange in 2018.

Bank of China has mandated firms to sell a multi-currency green bond through its Paris branch.

UK based drinks manufacturer Diageo returned to corporate bond markets on Wednesday with a three year and long six year dual tranche offering, while German housing association Vonovia continued the recent trend for two year floating rate notes.

Borrowers repricing and refinancing their debt are taking an ever bigger share of overall issuance in European leveraged finance markets. This week, Salt Mobile and Gates added to the already large list of names taking advantage of borrower-friendly conditions.

The last six weeks of 2017 in European equity capital markets look set to be busy with rights issues, as a string of companies has announced plans to raise capital before year end.

BayernLabo will on Tuesday enter the socially responsible investment market for the first time, selling a social bond — the first of three expected in the near future.

It would have been difficult to match last week’s start to the week, but Monday did see three new corporate bond issuers offering four tranches totalling €2.275bn to investors, despite the weak performance of bonds in secondary trading on Thursday and Friday.

European property company SEGRO European Logistics Partnership (SELP) sold its second ever corporate bond on Monday, doubling its total issuance and extending its maturity profile, while paying very little premium.