Europe

Since Friday last week the European Central Bank has stepped up asset purchases under its Pandemic Emergency Purchase Programme, giving secondary markets in rates products renewed vigour, said traders on Tuesday.

There is general agreement that the UK’s recently won ability to diverge from EU capital markets regulations represents an opportunity to create a more attractive environment for doing business in London — and everyone seems to have their own shopping list of reforms they would like to see.

Baltics Classified Group, the online classified advertising company focused on the Baltic region, has opened the books on its £238m IPO on the London Stock Exchange.

Speaking at a keynote interview on Tuesday at the Global Borrowers and Bond Investors Forum 2021, Sir Robert Stheeman, chief executive of the UK Debt Management Office, said that the strong and sustainable demand in the green bond market has given him confidence as the UK prepares to build out a green Gilt curve.

A tightening in spreads on senior unsecured bank bonds and wider covered bond spreads has made the latter an even less attractive funding market for issuers which, added to a plethora of additional factors, means that market could be facing its lowest year for issuance in 20.

Spain hit the market on Tuesday morning with a 10 year benchmark, impressing onlooking bankers and benefitting from a stable backdrop. KfW followed up with a tap.

A number of German IPOs progressed through marketing on Tuesday, but the general weakness in the IPO market is having an impact on the demand for the deals. Video game component manufacturer Cherry appears to be in a fairly strong position as it approaches the end of its IPO, but cycling e-commerce firm Bike24 looks to be struggling for momentum.

UK speciality fibres and plastics maker Essentra has launched a private placement in what is the second deal from a listed UK corporate to hit the market in a matter of weeks. Market sources say more corporates, including some utilities, are set to return to the instrument after a dry spell since the coronavirus pandemic began.

Sebastiano Laviola, director of strategy and policy coordination at the Single Resolution Board, said there is still plenty of work to do to refine bank failure rules in Europe but praised lenders for getting on well with issuing for the minimum requirements for own funds and eligible liabilities (MREL) during the pandemic.

A new special purpose acquisition company focused on the decarbonisation industry has launched an IPO on the Amsterdam Stock Exchange, with the backing of cornerstone investors.

Anadolu Efes Biracılık ve Malt Sanayii, the Turkish brewer, is seeking to issue a new dollar bond as it tenders for existing debt in the currency, just days after the Turkish sovereign reappeared in the debt capital markets.

Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark and bid-yields from the close of business on Monday, June 21. The source for secondary trading levels is ICE Data Services