Europe

Turkish participation bank Turkiye Finans (TFKB) has agreed a $180m Islamic club loan with similar pricing to its loans in recent years, despite sector-wide downgrades for Turkish banks after a turbulent year in the country in 2016.

Unicaja Banco sold a €192m block of shares in Iberdrola, the Spanish electricity company, on Thursday night, in an accelerated bookbuild led by UBS.

Major banks face a tight run-in to meet European initial margin rules on uncleared derivatives, with a January 16 deadline giving little time to make final preparations once market participants return following the Christmas break.

Elysium Healthcare, the property portfolio being spun out of the Priory Group to BC Partners, has cut its sterling loan offering to £133m after reaching a ground rent agreement mid-transaction.

The European Commission has determined that India, Brazil, New Zealand, Japan Commodities, United Arab Emirates and Dubai International Financial Centre have equivalent regulatory regimes for central counterparties (CCPs) to the European Union.

ICE Benchmark Administration, a unit of Intercontinental Exchange, is to assume the secretarial role on the credit derivatives determinations committees previously held by the International Swaps and Derivatives Association.

The risk of a devastating collapse in oil and gas companies’ share prices, when investors suddenly start pricing in climate change, is one scenario financial regulators are trying to ward off with the launch of new guidelines this week, which are a milestone in the world’s response to global warming.

After a fall in 2016 supply, the allure of euro bonds for US issuers looks to be set on a path of relative decline, as the market loses its technical shine and faces the prospect of cash repatriation for corporate America.

Lloyds is the major bank with most to lose from the ‘Basel IV’ rules, according to bank analysts from Credit Suisse, with a leap in risk-weighted assets of up to 21% driven almost entirely by operational risk.

Another piece of next year’s equity capital markets issuance puzzle was turned over today, when Lonza, the Swiss pharmaceutical and chemical company, announced a Sfr3.3bn rights issue to pay for the acquisition of Capsugel from KKR.

France has carried and cared for the idea of creating an explicitly bail-inable class of senior debt for about nine months, but the birth of the new asset class this week was swift, effortless and pain-free. Success of the first two deals was critically important, as investors will become very familiar with the new product in the first quarter of 2017.

Financial credits and stocks were focal points for derivatives traders this week, with a big rally in banks aided by perceptions of a more hawkish stance on interest rate hikes by the US Federal Reserve. But although volatility has largely abated from credit and equity markets with the passing of the Fed meeting, traders warned that Banca Monte dei Paschi di Siena and the credit index options expiry next week could still bring upsets before the end of the year.