Europe
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Ireland provided the lone benchmark of the week, returning to the syndicated market for the second time this year and printing €4bn of five year paper. -
Investors have largely managed to avoid getting their fingers burnt on deals that trade badly in this IPO season so far, and the market is continuing to power ahead, with the launch of several new large transactions.
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On Thursday, the European corporate bond markets had two new telecoms deals to consider. Iliad, and unrated French issuer, priced a seven year deal, while Telecom Italia opted for longer.
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On Wednesday, French toll road operator Cofiroute paid a low single digit new issue premium for its first corporate bond deal in over a year. The 10 year deal found favour with its faithful French investor base.
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Shrinking order books this week suggested that the financial institutions bond market was finally starting to cool off following an immense rally in 2017. But the developments have not prevented borrowers from printing tightly priced new deals in the primary market or lining up a number of exciting and unusual transactions for the coming sessions.
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J2 Acquisition Ltd, the latest cash shell vehicle of Martin Franklin, completed its London IPO on Thursday, raising $1.25bn for acquisitions in unspecified countries and sectors.
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TMF Group, the Dutch business services firm, has chosen the London Stock Exchange as the venue for its €340m-plus IPO.
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National Bank of Greece (NBG) has appointed leads to market its first covered bond since the Greek sovereign crisis, a transaction which rival bankers believe is assured of success.
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The few hybrid deals that have been printed in 2017 have seen overwhelming demand amid the current low rate environment. A €300m deal from German agriculture servicing company BayWa on Wednesday was no different, even if some of the bond’s features were more unusual.
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Italian auto finance bank FCA Bank on Wednesday opted to go for a short maturity for the lowest cost of funding for its latest bond issue. A €800m three year deal achieved just that, pricing with barely any new issue premium.
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Sterling corporate bond investors had three tranches of property company debt to evaluate on Wednesday, as Segro issued a £750m 12 year and 20 year deal and Notting Hill Housing Trust a £400m 31 year.
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