Europe

Sentiment is deteriorating in the financial institutions bond market amid fears of a second wave of coronavirus infections. Issuers are now expected to take a back seat until credit spreads show more signs of stability.

Stocks around the world fell on Monday after a spike in new cases of coronavirus were revealed in the US and China over the weekend, setting a stage for what is likely to be another busy but volatile week for European equity capital markets.

Ninebot, an electric scooter producer backed by electronics giant Xiaomi Corp, has won approval to raise more than Rmb2bn ($282m) from listing China Depository Receipts on the Star board.

Bankers hope they can bring several European IPOs to market in the autumn, and that the recent success of a few issuers and generally supportive secondary markets will allow for a busy end to the year. However, chaotic politics in the US are causing concern and bankers are becoming wary of doing deals too close to November's presidential election.

Finland’s Municipality Finance returned to the domestic New Zealand dollar bond market on Friday after a long absence, to raise its largest Kauri bond since 2008.

Ukraine has finally accessed International Monetary Fund support, as the country won access to a $5bn stand-by arrangement this week, but more long running negotiations for an extended fund facility (EFF) are on hold for now.

Ina Invest Holding, the real estate development unit of Swiss construction and property management company Implenia, has begun trading on the SIX Swiss Exchange following its spinoff from its parent.

Covered bond spreads in euros have already recovered more than half of the widening that they suffered through March and April due to the coronavirus pandemic. Market participants are now scrambling to find the bargains as returns vanish once again.

Shanghai-based China Pacific Insurance (Group) Co has launched its IPO on the London Stock Exchange, firming up the deal size and the syndicate group on the listing. The deal was covered on Friday, its first day of bookbuild.

Biffa, the UK waste management company, raised £100m in a sale of just under 50m new shares at £2 each to strengthen its balance sheet in order to take advantage of M&A opportunities.

This week's scorecard looks at the progress Nordic agencies have made in their 2020 funding programmes in June.

The European Central Bank’s chief supervisor has spoken out this week against the complexity of the capital triggers that can lead to restrictions on payments of additional tier one (AT1) coupons. He expressed his fear that these arrangements could be having a negative impact on bank lending behaviour during the coronavirus pandemic.