Europe

Agence Française de Développement is hoping to publish a broader thematic bond framework in the next couple of months to include the issuance of social-labelled debt alongside green bonds.

This month has been the busiest August ever for equity capital markets issuance in EMEA, as dealmaking has powered on through the traditional lull. Market sources expect a very busy September, too.

Vodafone, the UK telecoms company, blasted the cobwebs off Europe’s corporate bond market on Monday with the first benchmark issue in August, launching a dual tranche hybrid capital issue that garnered €7bn of demand at guidance and was priced flat to its curve, as investors snapped up higher yielding paper.

The European Investment Bank will re-open the euro public sector bond new issue market for the last funding period of the year. Further issuers are expected to appear this week, trying to get in before the European Union’s giant borrowing programme begins.

Investors are doubtful whether the extraordinary stock market rally of the last few months will continue, as they await news of a vaccine, further economic fallout from the pandemic, and the result of the US presidential election. If they want to maintain equity exposure while limiting potential losses, UBS analysts have suggested using call options for certain indices.

Berlin Hyp has mandated leads for the first covered bond from the eurozone since June 30 and plans to issue a 10 year deal secured on green mortgages and has pledged to undertake a number of new strategic commitments.

The bank bond market burst back into life on Monday, with BNP Paribas and Commerzbank shedding light on favourable pricing conditions in euros following the summer break.

Barclays has hired Manuel Esteve from JP Morgan to lead its continental European equity capital markets business.

Danish bankers believe that Danish mortgage banks are well capitalised and do not see the need to hold more capital, as was recently proposed by the Danish central bank.

Germany will issue green Bunds every year in the future, hoping to “establish a green euro interest rate benchmark, thus creating added value for the sustainable finance market”, its government said on Monday, as it revealed details of its first two green bond issues.

Sweden began a series of calls with investors on Wednesday as it prepares to issue its highly anticipated inaugural green bond through syndication later this month.

A staggering amount of capital has been raised by the world’s airlines so far this year as the industry has suffered its worst crisis since 9/11 as a result of the Covid-19 pandemic.