Europe

Unione di Banche Italiane (UBI) successfully joined a run of tier two issuance from peripheral banks on Wednesday, though the deal’s healthy premium suggested there was still caution around Italian financial institutions in the market.

ABN Amro has tapped one of its senior floating rate notes in the sterling market on Wednesday, as cash bonds held steady in the currency despite the UK Budget and the government's intention to trigger Article 50 later in the month.

The European Central Bank has stepped up secondary covered bond purchases to compensate for slower primary activity and has exacerbated a technical squeeze. But with the central bank expected to announce a tapering of asset purchases after summer the squeeze could reverse, and spreads could end the year much wider.

Legal & General will meet with its Asian investor base ahead of new tier two sale next week, joining Liberty Mutual in the pipeline as insurers return to the market following their latest results announcements.

Public sector borrowers are eagerly snapping up funding opportunities ahead next week's potential flashpoints that include a potential US interest rate rise, a Dutch general election and a US debt ceiling deadline — the last of which could greatly alter conditions in the dollar market.

Akbank emerged with pricing on an inaugural subordinated dollar bond on Wednesday morning after wrapping up two days of investor meetings in the US and UK.

Gazprom looks set to return to the dollar market for the first time in more than three years, following the announcement on Wednesday of plans for a US roadshow next week.

Volkswagen’s main borrowing entities have not issued unsecured bonds since the company became embroiled in its diesel emissions test cheating scandal in September 2015. Last week, however, the company took a first step back, with a €900m Schuldschein issue for its financial services arm.

It has been all about sub debt in CEEMEA this week, as a trio of borrowers took advantage of investor appetite for yield to boost their capital bases.

The €90m IPO of Avantium, the Dutch renewable chemicals company, was covered at its maximum size including the 15% greenshoe on Wednesday, less than three working days into the bookbuild.

Equity capital markets in EMEA have stepped up a gear this week, with a wave of new IPOs being announced, a handful of large block trades and the launch of a highly anticipated €8bn rights issue.

HSBC is understood to be considering transferring a banker from London to take over leveraged and acquisition finance responsibilities for Asia Pacific. This follows the departures of senior Hong Kong-based bankers from the levfin and sponsor coverage teams last month.