Europe

Sistema, the Russian diversified holding company, has raised a sustainability-linked credit line through the country's largest lender, Sberbank. Though there has been an increase in sustainability-linked financing in Russia, this deal marks the first ESG-linked loan between a domestic corporate and borrower.

Deutsche Bank and HSBC Holdings were targeting the dollar market with new loss-absorbing senior deals on Tuesday, having each raised debt in euros earlier this month.

Shaftesbury, the UK landlord that owns a large number of properties in London’s West End, has concluded a £307m recapitalisation, which saw a high take-up from its shareholders.

Hedge funds have started to take a keen interest in the Schuldschein market, but restructuring laws in Germany set to come into effect in January will stop them before they truly get started.

Finland’s Oma Saving’s Bank has mandated leads for a covered bond and follows OP Mortgage Bank which last week issued the first Finnish covered bond since January.

The Swiss Banking Association has asked the country’s financial supervisor to consider setting up a covered bond regulatory framework that would put structured covered bonds on a par with other legally based covered bonds, such as Swiss Pfandbriefe.

Mediobanca was swamped with orders for a small tier two on Monday, as investors welcomed a rare opportunity to gain subordinated exposure to the Italian bank. Its deal was further supported by another positive development in the race to roll out a vaccine for Covid-19.

Piraeus Bank is expected to have to convert its state-held contingent convertible bonds (CoCos) into equity, which will put the firm under Greek government ownership. The move comes after the Single Supervisory Mechanism this week refused the issuer’s request to settle its bond coupons in cash.

BBVA said on Monday that it had reached an agreement to sell its US subsidiary to PNC Financial Services. The Spanish bank’s bonds rallied sharply on the news of the deal, which will increase its main capital ratios by as much as 300bp.

Diaverum, the Swedish operator of kidney dialysis clinics, has launched an IPO on the Nasdaq Stockholm.

Italy received less interest for its second BTP Futura bond last week than its inaugural deal in the format earlier in the year.

Swedish digital bank Nordnet has set a price range for its IPO on Nasdaq Stockholm, following a constructive investor education process.