Europe

Europe’s investment grade corporate bond market has surprised few with the intensity of its start to autumn as issuers begin a run of primary activity that shows little sign of abating.

HSBC and Nordea looked to reopen euro issuance for FIG borrowers this week, as investors showed strong appetite for riskier and higher yielding debt after the summer period.

JP Morgan has lost Singapore-based Chetan Singh to UK insurer Aviva, where he will lead mergers and acquisitions globally.

Another large private equity sell-down in Sweden has stood out in a quiet week so far for primary equity capital raising.

Bharat Petroleum Corp (BPCL), which sent out a request for proposals for a $750m borrowing in July, is said to be planning to raise the money from three banks on a bilateral basis, as opposed to a syndication.

Finnish commercial real estate company Citycon was the second Nordic borrower to print bonds in two weeks, following a three month spell when no corporate borrowers from the region came to the market.

Koninklijke KPN, the Dutch telecoms company, on Tuesday boosted the size of an initial €1bn offering after books were five times covered despite competing against three other borrowers for investors’ attention.

Showing flexibility over Caixa Geral de Depósitos latest recapitalisation may not have been such a bad decision, but by using logic inconsistent with other cases the European Commission risks making its State aid rules appear arbitrary and meaningless.

Sukuk stepped into the spotlight after JP Morgan decided to include Islamic bonds in its EM bond indices, but while eligibility will give the asset class a boost, it will be a while before the product is more broadly used.

Coca-Cola came for euros on Tuesday with a 20 year bond that was priced aggressively, as a slug of borrowers took aim at the market.

German chemical company Evonik hit the reopened European investment grade corporate bond market at pace on Tuesday, as it sought financing for its €3.5bn acquisition of US industrial gas provider Air Products’ speciality and coating additives business.

A trio of issuers on Tuesday mandated for dollar deals across the shorter end of the curve, as underlying US Treasury yields stayed slightly elevated after last Friday’s meeting of central bankers in Jackson Hole.