Europe

This Loan Ranger has learnt a valuable lesson about what happens when you go on holiday and leave a vegetarian in charge. With Silver holding the reins, so to speak, things took a decidedly environmental turn…

Peripheral covered bond spreads were marked tighter on little volume on Monday, in line with a general improvement in risk appetite across the credit spectrum after a number of polls showed a swing in favour of the UK remaining in the European Union. But with opinion more evenly balanced than ever, the market has probably overreacted.

Clearstream has confirmed that it is working with the Chinese authorities to establish a link between offshore investors and the China interbank bond market (CIBM). The firm also said it will boost its Stock Connect capabilities from July 4.

China announced plans to expand its currency marketplace overseas this month with branches set to be open in London and New York. Market participants say this is all part of the renminbi internationalisation effort and is the first step to further liberalising the CNY foreign exchange market.

The €2.5bn rights issue of Banco Popular Español has been oversubscribed, the bank will announce on Friday, after it won solid support from core shareholders.

The €1bn IPO and highly dilutive capital increase of Veneto Banca is thought likely by bankers involved to be bought in its entirety by Fondo Atlante, as happened to the similar €1.5bn deal for Banca Popolare di Vicenza at the beginning of May.

Cobham, the UK aerospace and marine technology company, has successfully completed its £500m rights issue, which ended with a £22m rump placement this morning.

This week's scorecard looks at the progress of Nordic agencies through their 2016 funding programmes.

Equity capital markets bankers can feel satisfied that good planning led to an orderly and successful completion for half a dozen IPOs at the beginning of June, before fears of a possible Brexit really bit into market confidence. But they are now starting to assess the likely effects of the referendum on June 23.

Credit markets showed their capacity to surprise this week, as a varied array of issuers, including high yield and emerging market companies, raised funds, even though a referendum that could lead to the first country leaving the European Union is only a week away, writes Jon Hay.

Salini Impregilo, the Italian construction firm, sold €300m of non-callable notes on Thursday to refinance its old 2018 notes, and finance part of its acquisition of US peer Lane Industries.

A vote for the UK to exit the European Union next week is likely to intensely magnify a strong rush into safe haven assets, but some bankers are still confident that after the initial furore of a ‘Brexit’ there could be room for issuers eyeing euro deals in July to go ahead. And, if the UK opts to stay in the EU, issuers are likely to be lining up to print in July.