Europe

Philip Brown and Sanaa Mehra are leading a new unit at Citi, the latest the bank has designed for its sustainable finance business.

Immofinanz, the Austrian commercial real estate company, has raised €356m via the sale of new shares and mandatory convertible bonds to strengthen its balance sheet and take advantage of growth opportunities that the Covid-19 global pandemic has created.

Huawei Technologies, sanctioned by the US and now having its participation in the UK's 5G network questioned by the government, looked into raising hundreds of millions of euros in the Schuldschein market two years ago. But concern that buyers would freeze at a groundswell of negative news, whipped up in part from the US, scared the Chinese company off taking the risk. Its increasing isolation in major European countries means it is unlikely to use its capital markets any time soon.

Nick Hutt has been appointed chairman of the management board at VTB Bank (Europe), and Mark Richardson will replace him as chief executive of VTB Capital’s UK arm, subject to regulatory approvals.

France hit screens with a 15 year inflation-linked bond on Wednesday, raising €3bn with its first syndicated linker since 2018, capitalising on growing demand for inflation-linked products.

Deutsche Bank has created a new coverage model for its public sector business, which will be headed up by Panos Stergiou, global head of macro coverage.

The EU’s proposed recovery fund is expected to be presented to the summit of European leaders on July 17-18 with the size unchanged from the proposed €500bn of grants and €250bn of loans, although the EU budget is likely to be slimmed down, according to sources.

Kookmin Bank has priced its debut euro covered bond flat to where its higher rated compatriot, Korea Housing Finance Corporation (KHFC) would have been expected to come. The deal was said to have attracted additional demand due to its social theme, spurring hopes that further similar issuance would follow.

CCR Re, the French reinsurer, debuted in the bond market with a tier two on Wednesday, executing a strong transaction on the back of intensive investor engagement combined with favourable market conditions.

Central and Eastern European commercial real estate operator NEPI Rockcastle issued a green bond on Tuesday, attracting new investors to its debt.

In a response to feedback from UK financial institutions, the Prudential Regulation Authority has said it will assess the appropriateness of any reduction in Pillar 2A (P2A) requirements so that the buffer provides a fair measure of the risks facing banks as the UK prepares to leave the EU.

Otkritie Bank, the Russian financial services company, sold a 3% stake in gold and silver miner Polymetal on Tuesday night, the third trade in the firm in three months, as investors flock to take advantage of rising gold prices.