Europe

Peruvian billionaire Eduardo Hochschild has sold a chunk of his stake in Hochschild Mining, the London-listed gold and silver mining company, raising £123m.

Germany’s Volkswagen ended an absence of almost seven years from the offshore renminbi bond market this week, braving a year-end dip in liquidity to seal a Rmb1bn ($153m) deal. It offered yet another diversification opportunity for the carmaker, which is already a well-established name in China’s onshore securitization market. Addison Gong reports.

Equity capital markets deals have come thick and fast this year and even December has proved no exception, with issuance every day so far. But investors are warning of deal fatigue, meaning issuers and banks need to be careful not to push too hard on trades that have only a marginal chance of success.

The newest recruit to the ranks of large supranational issuers is also the bulkiest. Responding to Covid-19, the EU has created the €100bn SURE fund, active already, and a €750bn Next Gen EU programme, coming next year. Both are bond-financed, requiring a huge increase in the EU’s until now modest issuance, especially in the next two or three years.

Shares in Fugro, the Dutch geo-data specialist, rose by over 7.5% in trading on Wednesday after the company set terms for a €197m rights issue. The cash call is part of a comprehensive refinancing package that finally resolves longstanding issues around debt maturity.

Investors holding the covered bonds issued by NordLB in Luxembourg said on Wednesday that they were concerned about prospective rating downgrades after the bank said it would be wound down and in the wake of Fitch’s announcement on Tuesday that it had withdrawn its covered bond rating.

Turkey's largest city, the Istanbul Metropolitan Municipality, hit markets on Wednesday, seeking to raise dollars in a rare debt-raise. The deal is one of three major bonds from Turkish issuers in the last week.

Shares in Conduit Holdings, a new London-listed reinsurance company, rose on its first day of trading after a strong IPO, with investors keen on backing the new vehicle.

Ukraine is planning for a lower budget deficit in 2021 but the country is more than confident of its debt issuance abilities and its chances of reaching an agreement with the IMF, the debt management office told GlobalCapital. Another Eurobond issue could be on the way soon.

The US basketball league The National Basketball Association has sold $900m of US private placements, according to market sources, some four months after the National Football League came to the market for $1.7bn.

Credit Suisse gave investors an opportunity to buy new additional tier one (AT1) paper in the dollar market on Wednesday, shortly after receiving a credit ratings upgrade from Moody’s.

IWG, the London-listed operator of serviced offices and co-working spaces, has issued a £350m convertible bond as it prepares to take advantage of opportunities as the UK economy reopens after lockdown.