Europe

Banco Santander has launched its €7.07bn fully underwritten rights issue to support its acquisition of the failed Banco Popular Español, saying it expects to make a return on investment on the deal of 13% to 14% by 2020.

The European Parliament has approved a report that favours a principles-based approach to harmonising features of the European covered bond market.

What will happen to share prices and bond returns if the climate warms by 1.5°C, 2°C, 3°C? You don’t know, and neither does anyone else. But these scenarios are probable. It’s time we worked it out — and a decision before the G20 next weekend could make a huge difference.

The Inter-American Development Bank raised A$100m ($76.1m) on Tuesday by tapping its June 2026 Australian dollar bonds, despite the remaining maturity falling short of where most long end Kangaroo demand resides. Meanwhile, Nederlandse Waterschapsbank responded to reverse enquiry, tapping its 3.5% July 2027 bonds for A$15m.

Kommunalkredit Austria (KA) found strong demand for its high yielding Pfandbrief this week. It was the bank’s first deal since its was sold by the Austrian state, and the first Austrian covered bond that promotes financing with a social cause.

The appetite of Schuldschein investors seems insatiable. Coming off the largest and busiest second quarter in the Schuldschein market's history, two non-German inaugural borrowers nearly doubled their funding targets on Tuesday.

Dexia Crédit Local has brought the first £1bn-plus sterling deal from an SSA issuer since a shock UK general election result in early June, with what one SSA syndicate head away from the trade called a “phenomenal” result.

Emerging market issuers recorded their busiest June on record with $44bn printed across all regions, a feat made more eye popping because issuance in June between 2011 and 2016 averaged less than half of that amount, according to analysts.

Turkey’s first privately owned development and investment bank Turkiye Sinai Kalkinma Bankasi (TSKB) has refinanced a loan which matured last Wednesday with a $297m facility from a syndicate of 18 banks.

Investors responded to the news that the International Monetary Fund will likely delay a $1.9bn tranche of its bailout for Ukraine by saying the country has no chance of issuing a bond until the payment clears.

Santander said on Tuesday that it expected its net profit for the first half of 2017 would be up 24% compared with last year, before considering its recent purchase of Banco Popular.

On Monday night, the first equity block trade of the week in Europe came in the form of a sale of a 2% stake in Derichebourg, the French rubbish collection, recycling and outsourcing group that has a €1.2bn market cap, by the controlling family.