Europe

Agence Française de Développement is preparing to issue its first green bond since September 2018.

Santander Consumer Finance in Germany attracted excessive demand for its debut benchmark Pfandbrief which offered a considerable pick-up over swap rates. However, demand was more tentative for La Banque Postale’s 15 year, possibly due to renewed volatility in rates.

Barclays surprised some market participants this week when it said that it would not be calling one of its legacy tier one securities at its first call date in March.

The Development Bank of Kazakhstan (DBK) released initial price guidance for a tenge-denominated five year bond on Wednesday morning in London.

The Bank for International Settlements published a paper this week in which it suggested that supervisory authorities might need to introduce ‘prudential backstops’ to ensure that banks are valuing Level 3 assets appropriately.

Italy’s government is seeking help from the equity capital markets to spur the country’s ambitious plans for a greener economy. Sources say the market is ready to support this effort.

Covered bond investors are optimistic about the outlook for their market, with one big buyer telling GlobalCapital on Wednesday that it still offers good relative value. And, with ECB demand much higher than last year, the market still has scope to perform.

Generali Investments and BNY Mellon have both set up new funds to invest in green and sustainable bonds, in euros and sterling respectively.

IBM Corporation issued a bond in euros on Tuesday, while Comcast Corporation and Dow Chemical came out with mandates in the currency. The deals come at a time when reverse Yankee issuance has been flagging compared with last year.

The European Investment Bank and the Province of Quebec were well subscribed as they re-opened the dollar SSA market following the extended Lunar New Year holiday. Two more public sector borrowers will follow with dollar bonds on Wednesday, ahead of what is expected to be a busy month in the currency.

Finland received record demand for its first syndication of the year on Tuesday. The sovereign was joined in the long end of the curve by the State of North Rhine Westphalia as it tapped its February 2038s.

Private placement market participants have told GlobalCapital that a decade on from Ireland’s sovereign debt crisis more of its companies are starting to consider private placements again, as agents predict institutional investors will be appreciative of the country’s rapid recovery.