Europe

European equity capital markets sources breathed a sign of relief on Friday after Synlab, the German laboratory diagnostics company, stayed above water after it began trading on the Frankfurt Stock Exchange following its €670m IPO. Meanwhile, Darktrace avoided thefate of Deliveroo and traded up more than 40% in the aftermarket.

Greek banks are making the most of exuberant conditions in the financial markets in 2021, with Eurobank spying a golden opportunity to return to the senior FIG bond market this week. The next milestone is the country’s first additional tier one and, having just breezed through an equity raise, Piraeus is a prime candidate to open the market. Frank Jackman and Sam Kerr report.

Rating: Baa3/BBB/BBB-

Italy returned to the dollar market this week with a dual tranche offering of new three and 30 year bonds, with the latter extending the sovereign’s curve in the currency to 2051.

Bpifrance achieved a solid result as it sold its first green bond on Thursday, which came alongside another green bond from a compatriot issuer.

Rating: —/B/B

European IPO investors are becoming far more selective and this is leading to a binary market, where deals either soar or struggle.

Nationwide Building Society issued the first UK covered bond of the year, the first to test appetite since Brexit was concluded and the first UK deal with a 20 year tenor in euros. As such it offered a particularly rare opportunity to get some spread and yield pick-up.

Morgan Stanley and Goldman Sachs received a warm welcome in the euro market this week, as they turned to the currency amid what one banker described as a “US bank supply wave”.

There are plenty of reasons to be cheerful about first quarter bank results, but it’s too early to be excited.

Spac mania is taking off in Europe, with the largest European blank cheque company IPO so far successfully pricing this week, and more deals in the works.

Muenchener Hypothekenbank (MuHyp) priced the tightest ultra-long dated Pfandbrief in 18 years this week, setting the record a day after Bayerische Landesbank (BayernLB) priced the tightest covered bond of the year and the tightest Pfandbrief since late 2018.