Europe

China’s Ministry of Finance has confirmed it will issue an offshore renminbi bond in London with the trade expected to launch soon.

Bookmaker William Hill on Friday sold £350m of unsecured bonds in a sterling high yield market increasingly convinced that the June referendum will support the UK’s European Union membership.

SNCF Réseau sold a dual tranche euro deal on Friday, its second benchmark of the year. The French agency is stepping up its benchmark activity in light of increased funding needs, according to a banker at one of the leads.

Banca Carige may follow the example of Portugal’s Montepio, which on Friday said it would restructure its covered bond programme to a conditional pass-through (CPT), resulting in a three notch upgrade. The Italian bank’s bonds were junked by Fitch on Thursday, and with access to primary markets at risk, it may copy Monte dei Paschi Siena which switched to a CPT last year.

In this round-up, China's central bank appoints a new deputy governor, first foreign banks with direct access to China’s onshore foreign exchange market are named, the first RMB certificates of deposits (CDs) settle in the US, and eight new RMB qualified foreign institutional investor (RQFII) licences. Plus, a recap of our stories this week.

Erste Bank, the Austrian lender that failed to pay a coupon on legacy tier one debt just 18 months ago, this week mandated leads for an inaugural additional tier one transaction that could be one of the juiciest trades ever to hit the market.

Sanoma, the unrated Nordic media group, sold a €200m unsecured bond on Thursday to redeem some of its old notes due next year.

BP showed on Thursday that there is still life in the equity-neutral convertible bond structure, bringing a £400m deal that was oversubscribed and priced within its marketed range.

Italy sold a super rare short-dated syndication this week, but a debut 50 year benchmark — a growing trend for sovereigns this year — looks to be some way off.

The European Financial Stability Facility is the biggest confirmed name for euro issuance next week, with a wide variety of trade options open to it, according to bankers.

There was a steady stream of sterling deals in the supranational and agency market this week, amid confidence that volumes will keep up until the UK’s referendum on European Union membership is imminent.

Norwegian issuer SR Boligkreditt and New Zealand borrower Westpac NZ will both take new euro deals on the road before the end of May, and the UK’s TSB has confirmed covered bonds will form part of its long term funding.