Europe

The UK Debt Management Office swatted away weeks of Gilt volatility to tighten pricing, hit the upper end of size expectations and attract overseas demand with a £4bn tap of its 2.5% 2065s on Tuesday.

Euro Garages has widened the discount on its £250m term loan ‘C’ to 97.5, with prospects for sterling issuance less clear following a pulled deal last week.

Spain’s real estate investment trust Merlin Properties on Tuesday sold its second issue in a market where most eyes turned to Danone’s €6.2bn jumbo deal.

Commodity trader Gunvor is in the market to refinance its $1.36bn European revolving credit facility $210m of which is due to mature in November 23, according to three bankers.

US agricultural equipment manufacturer AGCO more than doubled its first ever Schuldschein, from the launch size of €150m to €375m.

B2 rated Infinitas priced on Tuesday its €380m term loan ‘B’ refinancing at the lower end of the guidance having first signed the deal just eight months ago.

Corporate bond investors had it well flagged to them that French dairy goods producer Danone would bring its jumbo five tranche offering this week, but it sparked excitement all the same when it arrived.

The European Central Bank has reached the limits of its covered bond purchase programme (CBPP3), according to board member Ewald Nowotny. His remarks reflect the difficulty the ECB is having sourcing bonds, but do not mean the programme is about to end.

Banco de Crédito Social Cooperativo had a tricky entry into the bank capital market on Tuesday, but the small Spanish lender managed to walk away with its first ever tier two deal.

Turkish retail group Boyner has arranged $170m of loans from local and foreign banks. Most of the deal was supplied by international lenders, despite the country having being downgraded to junk this year.

Two more Turkish banks opened order books on dollar trades on Tuesday, following Isbank, Vakifbank and Turk Eximbank last week. Sekerbank and Kuyeyt Turk are out with a Basel III tier two and a sukuk respectively.

The recent rise in yields has provided covered bond borrowers from the most expensive jurisdictions like Germany an opportunity to diversify away from the overpopulated 10 year. DG Hyp was the latest issuer to take advantage of this development with its €500m long eight year which was issued on Tuesday.