Europe

Coventry Building Society received a strong reception for the first euro-denominated covered bond from a UK issuer since the UK referendum to leave the European Union. Despite cheaper funding alternatives, the deal demonstrated Coventry’s strategic commitment to the euro market.

The ECB’s review of bank internal models, dubbed TRIM, looks set to swell bank balance sheets in the year ahead — partially removing any benefit European firms get from a delay of the Basel Committee’s new credit risk rules.

Société Générale became the third French bank to dip into dollars for senior non-preferred debt this week, with investors appearing hungry for the new product.

Allianz pleased investors by selling a new dated tier two in the euro market on Thursday, as the German insurer looked to replace an undated subordinated bond it plans to call in February.

Euro covered bond issuers came to the market in size across a range of tenors on Thursday morning, as Compagnie de Financement Foncier (CFF) landed a €1.5bn six year deal and Helaba drew €2bn of funding with a five and 10 year Pfandbrief issues.

Intesa SanPaolo and Santander found attractive pricing as they kick-started the bank capital market in euros this week, and bankers are forecasting a busy January before financial institutions drop into blackout periods.

BBVA and BFCM offered investors a rare chance to grab vanilla senior as the euro market heated up on Thursday, with the latter bucking the recent trend for French banks to sell new non-preferred notes.

Arle Capital Partners reopened the equity block trade market in Emea for 2017 on Wednesday evening by offering a €114m block of shares in Parques Reunidos, the Spanish leisure park operator.

German chemicals producer BASF snatched a steal in sterling on Tuesday as it printed flat to its curve with a £300m long eight year trade that began 2017’s corporate bond issuance in the currency.

A dual tranche global deal from the Asian Development Bank on Wednesday at least temporarily dashed hopes that this year could be strong for 10 year dollar benchmark issuance — although some bankers away from the trade felt that the problems were idiosyncratic rather than reflective of demand.

KfW and Ireland brought euro deals on Wednesday at the very top end of size expectations, alleviating a little of the pressure on what is set to be an extremely busy year in the currency. The trades came the same day as Municipality Finance mandated for a euro benchmark and a request for proposals came from the European Financial Stability Facility.

Syndication of the acquisition financing loans for Lonza and Sibanye Gold is expected to begin soon, as loans bankers begin 2017 in an optimistic mood.