Europe

Governments around the world face heavier than usual borrowing requirements and, with the market for syndications all but shut for summer, they have leaned more heavily than usual on the auction calendar.

French banks have been among the most active issuers of covered bonds so far this year but, with the pace of mortgage origination expected to slow and deposit inflows rising, further supply is less certain with pre-funding for next year becoming an option with doubts over the longevity of the prevailing strong market conditions.

Local lenders in central and eastern Europe have stepped up for local clients during the coronavirus pandemic. Structural factors will help them fortify their position against international banks should infections rise again.

Energias de Portugal, Portugal’s largest utility, closed its cash call in Lisbon on Friday with 93.8% of shareholders taking up their rights. However, the company attracted demand worth 256% of the €1bn offering. Market watchers hope the result augurs well for Spanish telecoms operator Cellnex's rights issue on Thursday.

FIG deal arrangers say the euro market could reopen for business as early as next week, with more investors set to return from their holidays.

The outlook for bank credit ratings deteriorated more sharply in Europe than in any other region over the first six months of 2020, according to Fitch.

Carnival Cruises has completed a partial buy-back of the $2bn three-year convertible bond it issued in April, to give it extra liquidity during the Covid-19 pandemic.

Although the MTN market contracted during the first half of 2020, structured issuance rose. The bulk of the increase came in the form of notes with calls added to enhance yield.

Housing 21 became the latest UK housing association to receive a strong reception from investors on Friday as it priced a long-dated sterling tap with a book almost three times covered and a negligible new issue concession.

Fitch Ratings has hired Matt Palmer as a senior director in its London office to develop its ratings business in investment grade debt markets.

Six months after joining JP Morgan, William Vereker has been named as the next non-executive chair of Santander UK.

Aim-listed oil and gas producer i3 Energy has announced a £30m fundraising to finance its reverse takeover of Canadian firm Gain Energy’s petroleum and infrastructure assets.