Europe

Turkey's central bank once again faces a critical rates decision this week. Any whiff of a cut in rates would be disastrous for the volatility-stricken country and its access to capital markets.

Air France-KLM has set the offer price for its €1bn capital increase following an accelerated bookbuild on Monday night.

Berlin Hyp has this week become the first financial institution to issue a sustainability-linked bond. Market participants were divided over whether the structure helped the issuer to achieve better deal terms, but the innovative trade will give other banks an important example to follow.

DZ Hyp raised €1bn of eight year covered bond funding flat to its curve on Tuesday in what bankers called a ‘textbook execution’.

Georgia is returning to the bond market after its existing dollar notes matured just days ago.

Nexity has returned to the equity-linked market with the sale of a new €270m seven year convertible bond.

Santander has lost a covered bond trader to Barclays, which itself is in the market for a covered bond analyst after losing two recently.

Sovcomflot, the shipping company majority-owned by the Russian state, is planning to enter the debt capital markets. But the dollar bond mandate comes at a tricky time as military escalation between Russia and Ukraine has caused investor confidence of assets on both sides to fall.

Allfunds, the UK-based business-to-business funds platform that is listing in Amsterdam, is making a strong impression among investors that are leading the talks on valuation, according to a number of sources. The deal is one of a number of IPOs being circulated to buyers.

Lufthansa has issued a quirky Schuldschein this week, according to market sources, in that it was bought by the eight banks that arranged it, rather than being sold to investors.

Covered bond spreads look set to tighten further over the next few months, traders told GlobalCapital on Monday. But even so, medium term macro-economic uncertainty is curtailing risk appetite as spread potential is limited and a market-wide sell-off may follow in the medium term.

Swiss pharmaceutical ingredients manufacturing company PolyPeptide Group has filed for an IPO on the SIX Swiss Exchange, which is expected to value the company at around €1.5bn equivalent to €1.7bn equivalent, according to a source close to the deal.