Europe

Arabtec Holding, the United Arab Emirates’ largest listed construction firm, said on Tuesday its rights issue was fully subscribed, raising Dh1.5bn ($408m) for a recapitalisation.

Looming political risk in Italy make the sovereign’s levels of yield and the spread it offers over German Bunds look too low, according to Andrew Balls, chief investment officer of global fixed income at PIMCO.

Bank of England governor Mark Carney welcomed parts of the European Commission’s draft proposals on euro clearing this week while warning against relocating the activity from its base in London.

Aegon Bank returned to the market on Tuesday to issue its first and probably only covered bond deal of the year. Despite the more challenging conditional pass through 10 year maturity, the transaction attracted a much deeper well of demand than a competing six year bullet maturity offered by UniCredit’s German subsidiary, HVB.

The multi-tranche theme of the week continued on Tuesday. British Telecommunications and Coentreprise de Transport d’Electricité both launched triple tranche bond deals, with the volume skewed towards the longer tranches.

A €17m floating rate issue will be listed on the Third Market of the Vienna Börse to fund the acquisition of Corpo Vigili Giurati, the Italian private security group, by the Berni-Gamberini family.

Nordic issuers are occupying both ends of the deal size range in the euro high yield market of late. First was Sweden's Instrum’s multibillion bond sale on Friday, and on Tuesday Denmark’s European Energy announced a €50m refinancing deal.

CVC flexed its buyout muscles again this week, buying two European tech companies for more than €1bn, while Blackstone has agreed to a joint venture for its recently acquired cigarette filter making business Rhodia Acetow with a unit of US chemicals firm Celanese.

Russia benefitted from a huge technical bid for its bond sale on Tuesday with demand approaching $6bn by 10am, as investors are desperate to pick up debt from the country.

BNP Paribas sold a seven year non-preferred issue on Tuesday, in the first ever total loss-absorbing capacity (TLAC) bond transaction aimed at regional investors.

Turkey’s Isbank has hired banks to arrange an 11 year non-call six Basel III compliant tier two trade, continuing a spate of riskier debt issuance from Turkey’s banks this year.

The Luxembourg Stock Exchange (LuxSE) has signed an agreement with the Shanghai Stock Exchange (SSE) to launch a green bond index that will provide synchronous quotes in China and Europe.