Europe

Independent firms were the big winners of the 2008 financial meltdown. But they will find the Covid-19 crisis tougher to navigate, as they grapple with a unique set of challenges, writes David Rothnie.

Zalando, the German e-commerce company, issued a debut €1bn dual-tranche convertible bond on Wednesday night, extending a busy week for the European market with more deals on the way.

German real estate firm ADO Properties has sold a €400m five year high yield bond, its first since an audacious merger with competitors Adler Real Estate and Consus.

Nestor Paz-Galindo has become global co-head of M&A at UBS, replacing Greg Peirce, with Philipp Beck succeeding him as head of M&A for Europe, the Middle East and Africa.

Anis Lahlou is chief investment officer at Aperture Investors in London. He believes that asset managers must change the way they charge fees to their investors, by only charging them for market-beating performance.

Phoenix Pharmahandel, the German pharmaceutical company, issued a five year euro-denominated bond on Wednesday, as pharma companies across the credit spectrum continue to hold investors’ attention.

The primary capital markets issuance boom of the past three months helped Barclays report strong investment bank results for the second quarter on Wednesday.

Deutsche Bank on Wednesday released a stellar set of results for origination for the second quarter, compared with consensus estimates, its previous results and to a lesser extent competitors. Henrik Johnsson, co-head of European banking and capital markets, said that the bank’s strengths became more valuable during the coronavirus crisis.

CEA Investissement, the corporate arm of the French Alternative Energies and Atomic Energy Commission, has sold €104m of shares in Soitec, the French semiconductor company, through an auctioned block trade won by Société Générale.

Mitie Group, the UK outsourcing and facilities management company has completed its £200m rights issue, with over 93% of shareholders taking up their shares with the remainder sold to the market on Wednesday morning.

The primary market for covered bonds with environmental, social or governance (ESG) purposes has been exceptionally strong this year, and with the European Union’s Taxonomy regulation recently coming into force and strong execution happening even in difficult market conditions, there are high hopes that issuance will scale new heights.

European Banks are seeing a rebound in their common equity tier one capital ratios in the second quarter, as they draw on new measures of regulatory relief to guard themselves against a tougher operating environment.