Europe

Martin Roland has moved from FIG syndication at LBBW to funding and debt investor relations.

KfW is exploring whether it needs to increase the size of its annual capital markets funding programme after outlining plans to expand its lending to help companies affected by the coronavirus pandemic.

Despite current market turbulence, Kommuninvest, the funding body for Swedish local governments, still plans to press on with its debut euro green bond when volatility abates, according to its head of debt management.

Caisse des Dépôts et Consignations plans to proceed with funding outside of its core currencies of euros and dollars in the coming months, in spite of the volatility.

Private debt funds in Europe may be the hot new thing to some in capital markets but they could be about to come of age, having never been through a serious credit downturn before. The market is under scrutiny over how it will cope with the credit ramifications of Covid-19.

A good number of covered bond issuers are planning deals, and some had hoped to open books on Monday, but market conditions were too volatile. The market is open provided careful attention is paid to name, spread, tenor and timing — with the key to success down to careful preparation, bankers told GlobalCapital on Monday.

ING Groep said on Monday that it would redeem a pair of perpetual capital instruments, including an additional tier one bond, after deciding the move would be in its economic interest.

FIG DCM officials say it is impossible to tell when banks could return to selling unsecured debt, with markets locked in a period of extreme volatility and uncertainty.

As the deadly Covid-19 virus continues to wreak havoc on global markets and supply chains, emerging market lenders are proceeding to discuss financing options with clients, but are only comfortable funding those of the highest quality, according to bankers. Origination processes are becoming more stringent than ever, with some lenders requesting to see borrowers detailed contingency plans.

Lawrence Stroll, the billionaire and Formula One racing magnate, has been instrumental in pushing ahead with UK car manufacturer Aston Martin’s capital raise, restructured on Friday, meaning the company’s turnaround plan, which includes a rights issue, is still going ahead.

Finablr’s shares have been suspended and the company has warned that it may go out of business just ten months after ts IPO.

The European Central Bank's new stimulus package will lower supply and boost demand for covered bonds, suggesting that ECB president Christine Lagarde will in fact 'close spreads' in the asset class. For now though, valuations remain under pressure and spreads are likely to widen in the short term.