Europe

The Climate Bonds Initiative has said the evidence for price benefits of green bonds is becoming "increasingly visible". Though proof of a pricing advantage in covered bonds is limited, it was on display this week when Crédit Agricole Italia issued is first green covered bond and more generally, the product attracts a wider investor base.

Bank issuers are increasingly interested in the idea of selling tier two bonds in green formats. But green additional tier ones are unlikely to bloom.

Increased turbulence in global equity markets has changed the way block trades are conducted in Europe, with smaller transactions coming to market in order to protect the price for sellers.

The European Central Bank has delivered its latest monetary policy decision, promising an increase to the pace of its Pandemic Emergency Purchase Programme (Pepp). Market participants were eager to see a tangible demonstration of support in light of the harsh sell-off of the last month.

Helios Towers, the Africa-focused telecoms infrastructure company, has sold a new $250m convertible bond to finance its pipeline of tower assets.

The European Union will establish a primary dealer framework for its €750bn Next Generation EU (NGEU) funding programme, which is set to kick off in the summer and will include the use of syndications, auctions and other debt instruments.

A pair of French agencies hit the market on Wednesday, pulling off impressive deals ahead of the European Central Bank meeting on Thursday, where investors hope to hear promises of increased support.

In one of the first pieces of public research on the nascent direct lending asset class in Europe, a report from Oxford University’s Saïd Business School has found that it could grow assets under management by as much as 50% in the medium term, owing to banks retreating from the mid-market and investors looking for higher yields from credit.

The Restaurant Group, the owner of numerous UK dining brands including Wagamama and Frankie & Benny’s, launched a £175m equity raising on Wednesday to see it through to the end of the UK’s Covid-19 lockdown.

Swedish pharmaceutical company Oncopeptides has placed Skr1.1bn ($132m) of new shares to finance the commercialisation of its lead product candidate in the United States, and the development of other treatments.

Bouygues, the French industrial group, sold a 3.23% stake in French rail company Alstom in Paris on Tuesday night, attracting strong demand for the deal.

While European banks have been ducking the covered bond market in favour of central bank liquidity, issuance from the asset class’s newer markets has also been light, but for different reasons. Attention is now on South Korea and Japan, which are seen as the most promising sources of new issuance, according to a senior S&P ratings official.