Europe

Bond buyers showed strong appetite for Russian Railways’ new dollar benchmark on Wednesday morning despite pricing levels seen as tight by sector analysts.

The corporate bond market is picking up momentum again, with almost €3.5bn of debt printed already this week, and investors say issuance can continue apace if Europe’s economies continue to improve.

Senior and covered bond spreads have plunged to new lows in the FIG primary market this week, with a host of banks looking to lock in unprecedented funding levels.

Equity capital markets issuance in EMEA is already nearly €5bn ahead of last year's pace, at €19.6bn so far this year, and the total is set to nearly double this week when UniCredit completes its €13bn rights issue.

The Singapore dollar bank capital market is set for a busy week with Commerzbank announcing a Basel III tier two bond on Wednesday morning. Its offering closely follows UOB’s successful tier two outing on Monday.

Deutsche Wohnen, the German housing company, has launched this evening a parallel issue of €500m of new shares and an €800m convertible bond, breaking a quiet spell in Europe’s equity-linked market.

In spite of the spread between OATs and Bunds reaching a four year high, two French public sector issuers chose to come to market this week, hoping the market would be stable. It’s no longer enough for issuers to sit on their hands waiting for calm — it’s about braving possible volatility and funding when you can.

The Republic of Slovenia will issue new euro debt to finance a buyback of its existing dollar bonds in its second trade of 2017.

CVC has agreed to buy Polish retailer Żabka Polska from Mid Europa Partners, in what the latter says is the largest private equity exit in Poland to date.

RenoNorden, the Norwegian waste management company, has finished its Nkr350m (€39m) rights issue to prevent it breaking its debt covenants after losses in 2016.

Nordic Capital has completed the first selldown of shares in Resurs Holding, the Swedish retail finance company, since its IPO in April 2016.

Spain is set to bring its second benchmark of the year after mandating banks on Tuesday, as the country enjoys a spell of stability compared to some of its eurozone peers and a market that appears to be calming after a volatile start to the week.