Europe

Compass, the FTSE 100 listed catering company, raised £1.8bn in an accelerated transaction on Tuesday, the largest UK Covid-19 capital raise so far.

Oliver Corstjens has left his position as supranational, sovereign and agency bond syndicate banker at Citigroup, at the same time as its syndicate head for EMEA is also due to leave.

Following last week’s record-breaking Gilt syndication, the UK returned for another impressive result, scooping up £7bn from a £52bn book and pricing with a minimal new issue premium, according to the leads.

Loans bankers are puzzled by a probe by the UK's Financial Conduct Authority into whether banks attached improper conditions to loans to companies during the coronavirus crisis. They are concerned the FCA could edge into criticism of the system of bank-client relationships that underpin modern corporate finance, and some believe this is already having an influence on how companies think about mandates.

Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark and bid-yields from the close of business on Monday, May 18. The source for secondary trading levels is ICE Data Services.

Governments across the world are scrambling to conjure up funds to offset the financial devastation of the coronavirus pandemic, including in the UK, which is expected to raise about £250bn between April and August alone. GlobalCapital spoke to Roger Bootle, economist and chairman of Capital Economics and recent author of “The AI Economy”, about the long-term implications of the UK’s higher borrowing.

BPCE attracted more demand from more investors than any other French covered bond issued in at least eight years when it launched its first green covered bond on Tuesday. The outcome sent a strong signal to other borrowers seeking cost-effective, long term funding that central banks do not offer.

The European Insurance and Occupational Pensions Authority (Eiopa) said this week that risks were rising for the insurance industry amid the coronavirus pandemic. It warned of a ‘double hit’ to firms, which are facing pressure on their assets and liabilities at the same time.

ING has become the latest EU bank to sell subordinated debt during the coronavirus crisis, after capitalising on healthy levels of demand for its tier two paper on Tuesday.

Richie Revill, formerly at Barclays, has joined the boutique Asian investment bank SC Lowy as head of markets for Europe.

France and Germany have come together to support a €500bn EU recovery fund to be financed through European Commission debt issuance. Observers believe that the decision was likely encouraged by the German Federal Constitutional Court’s (BVG) recent verdict on the ECB’s quantitative easing programme.

London insurance underwriter Beazley plc completed a £247m growth capital raising on Tuesday to position itself for expansion once the pandemic subsides, and to shore up its balance sheet.