Europe

DLR Kredit is set to tap the market for non-preferred paper as it looks to refinance maturing paper that counts towards its regulatory debt buffer.

UBS Group made a swift return to the dollar bond market on Tuesday, as it went in search of an additional tier one transaction a day after raising $3bn of senior unsecured debt.

Polish synthetic rubber group Synthos announced a €500m high yield bond on Tuesday, following its recent agreement to buy two specialist rubber businesses from Trinseo for $449m. It will fund the acquisition through cash but it launched the new bond to pay down its existing term loan and put in place a more flexible capital structure, including an increased €500m revolving credit facility.

Bank borrowers returned to a stronger euro bond market on Tuesday, but deal arrangers warned of lingering concern over rates and inflation as KBC Group struggled to draw a crowd for a long-dated offering.

Europe’s IPO pipeline is set to grow this week with new deals being launched and some live deals scheduled to open books, but banks acknowledged that execution conditions were difficult, given heightened equity market turbulence.

Danish software company Trifork is closing the books on its Dkr1.06bn (€140m) IPO on Nasdaq Copenhagen.

Shipping group Seaspan has issued $500m of sustainability-linked private placement debt, in the largest ESG-linked transaction to hit the market so far.

There was strong buying interest in recent long dated bonds from the EU on Monday, said traders, as well as those of semi-core European sovereigns. That is expected to continue this week as hedge funds circle the EU's most recent bond.

Yapi Kredi Bank and Garanti Bank this week became the latest Turkish banks to refinance syndicated loans, in the process raising ESG-linked facilities. The trend towards ESG-linked financing is not driven by the desire to cut costs, which for many has been only symbolic, but by a desire to help boost borrowers’ credentials and to make life easier for international lenders.

The UK is set to come to market this week with a syndication of an index-linked bond — its first of the financial year.

Taylor Maritime Investments, a new investment trust, has priced its IPO on the London Stock Exchange, raising $253.7m to invest in a portfolio of ships.

A draft amendment to the Hungarian covered bond regime, that brings it into line with the European Union's Covered Bond Directive, is likely to be a positive for the product's credit and should improve prospects for issuance in euros.