Europe

UniCredit Italy became on Monday the first Italian bank to break through the mid-swaps barrier with a covered bond, but it needed to employ its lead managers’ balance sheets to do it.

Hypo Tirol has named leads for a new benchmark euro-denominated mortgage covered bond. Austrian mortgage-backed bond issuance appears to be gathering momentum after a long Heta hangover. However, rival bankers said that lingering concerns about the level of exposure the mortgage banks have to Heta may hamper the deal.

Belgium on Wednesday printed the largest euro benchmark of 20 years or longer since the European Central Bank began a programme of public sector bond buying earlier this year.

The Euromoney Smaller European Companies Index Series currently comprises 1350 companies across 16 European countries.

The Spanish Cédulas outlook is set to improve, not just because the economy is experiencing one of the strongest growth rates in Europe, but also because legislative proposals will bring the market into line with best practice. However, there is still no consensus on how the proposals will be implemented, said panellists at the European Covered Bond Council’s plenary session in Barcelona on Wednesday.

Russian fertiliser producer Eurochem signed a $750m pre-export credit facility, it was revealed on Wednesday, having been in talks with banks since the end of last year.

British largest off-license chain Conviviality Retail has agreed to buy drinks wholesaler Matthew Clark Holdings with funds from £80m of term loans and a £130m share placing.

Belgium has mandated for the first fixed rate benchmark longer than 20 years in the sovereign, supranational and agency sector in euros since February, while an Austrian agency also found demand at the long end of the euro curve.

Akelius Residential Property, the Swedish property group, was the only borrower roadshowing on Tuesday for a speculative grade bond in Europe, but bankers said investor feedback was positive.

FBD Holdings, the unrated Irish insurance company, told investors in August it would be exploring the option of a bond offering before Solvency II regulations take effect next year, but Irish news media report the deal has been shelved.

Cariparma Crédit Agricole printed a €1bn June 2023 mortgage-backed bond on Tuesday. The healthy new issue premium offered by the issuer suggests investors are demanding more of a premium following the glut of supply recently.

Hypo Tirol has named leads for a new benchmark euro-denominated mortgage covered bond. Austrian mortgage-backed bond issuance appears to gathering momentum after a long Heta hangover. However, rival bankers say that lingering concerns about the level of exposure the mortgage banks have to Heta may hamper the deal.