Europe

Several mid-market buyout deals materialised in the European leveraged finance market at this week, even as private equity firms struggle to source primary issuance amid highly elevated asset prices.

Danske Bank showed enduring demand for five year covered bonds on Monday when it issued the first Danish covered bond in euros this year. In common with other deals issued in this part of the curve, the bonds quickly attracted a well oversubscribed order book.

As the visible pipeline in the European high yield bond market reopens, one of the largest debt advisers to borrowers had a tip for high yield bankers: search for new supply away from sponsors.

Crédit Agricole tapped its 20 year covered bond on Monday at a spread that was almost twice as tight compared to OATs as the original issue. The success of the tap shows that the German insurance firms that bought the increase are focused on other metrics than the cost compared to government bonds.

Shares in Banco Comercial Português rose as much as 9.3% on Monday after it announced late on Friday the successful completion of its €1.33bn rights issue to strengthen its core tier one capital ratio and finance the redemption of contingent convertible bonds owned by the Portuguese government.

Santander Consumer Bank Norway was nearly five times oversubscribed for a €500m three year on Monday, sucking up demand for an undersupplied part of the curve.

Albaraka Turk received a boost to its capital after investors voted to update its old-style tier two sukuk as Fitch junked 18 Turkish banks on Friday.

CaixaBank picked banks for a euro tier two transaction and Iccrea Banca announced a roadshow for its first public trade in more than two years, as the FIG market looked in good shape to receive higher beta trades from the European periphery.

The UK Debt Management Office has opted to reopen an index linked Gilt maturing in 2065 for its sixth and final syndication of the 2016/17 financial year. Meanwhile, Municipality Finance opened sterling issuance for the week with a December 2020 issue.

Droit Financial Technologies, a New York-based regulatory financial technology firm focused on over-the-counter derivatives, has made a senior hire in London as part of a European business drive.

Almost two years after Moody’s and Fitch changed their rating criteria to take account of the Bank Resolution and Recovery Directive, Standard & Poor’s has set out how it plans to build resolution regimes into its ratings.

Italian eyewear maker Marcolin entered a quiet European high yield market on Tuesday, announcing a roadshow starting on Wednesday for €250m of floating rate notes after signing a joint venture with LVMH.