Europe

Paragon Banking Group this week became the first UK lender to launch a subordinated bond in an ESG format. The bank was looking to replace its only outstanding tier two with a new green-labelled transaction.

The European Central Bank could give EU lenders more time to rebuild their capital buffers if they struggle to keep on top of an expected increase in credit risk during the coronavirus pandemic.

CTP Logistics, a commercial property developer based in the Czech Republic, began bookbuilding for its IPO on the Amsterdam stock exchange on Wednesday.

A Z4.59bn ($1.2bn) block in Allegro, the Polish e-commerce company, met with strong demand from equity investors on Tuesday night, with investors eager to buy more of the stock which was listed to acclaim in Europe last year.

MUFG has hired three managing directors to help boost its coverage of private equity sponsors, as well as direct lending.

Covered bonds and RMBS secured on green mortgage collateral do not deliver issuers much of a saving over conventional issuance in those markets, but favourable regulatory initiatives stand to tip the balance towards an increase in green mortgage production. Secured issuance will be the best way to fund this activity — expect green RMBS and covered bond issuance to surge.

Food retailer Jumbo, a privately owned supermarket chain with shops in Belgium and the Netherlands, has launched an inaugural Schuldschein.

Greece and the Flemish Community are preparing to sell syndicated bonds at the long end of the euro curve following a strong reception for France with the sale of its second green OAT on Tuesday.

Europe’s crop of pre-Easter IPOs are moving swiftly thorough the pipeline and investors are engaging with deals after an improvement in risk sentiment in line with recovering secondary markets and several successful block trades last week.

Iceland is putting the finishing touches to a sustainable bond framework that will allow it to issue a variety of bonds with socially responsible labels. If the sovereign decides to proceed with the plan, a debut deal in the format could arrive this summer.

Commodity trader Trafigura has launched US private placements, according to market sources, its second entrance to the market in less than 12 months.

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, March 15. The source for secondary trading levels is ICE Data Services.