FIG Article Archive


  • Monte dei Paschi returns to senior amid rally in Italian FIG

    Italian banks are taking advantage of excellent new issuance conditions, as investors re-establish their confidence in the country's new government. On Tuesday it was Banca Monte dei Paschi’s turn to do so with a euro-denominated preferred senior bond, one day after UniCredit and Intesa Sanpaolo.

    • 03:15 PM
  • Nationwide innovates in blowout AT1 return

    Nationwide Building Society was more than six times subscribed on its return to the additional tier one (AT1) market on Tuesday, revealing the extent of investors’ appetite for the asset class.

    • 02:15 PM
  • CaixaBank and RBI stand out with ESG bonds on 'ridiculously busy' day

    CaixaBank launched a non-preferred senior bond linked to social causes on Tuesday, while Raiffeisen Bank International launched a green preferred senior bond. Both deals were heavily oversubscribed on a day that one banker described as 'ridiculously busy'.

    • 02:15 PM
  • Issuers ‘hot trot’ in covered bonds as bankers see execution certainty

    Demand for euro covered bonds issued on Tuesday by Virgin Money, NN Bank and DZ Hyp has markedly improved from earlier this month, and lead managers have announced a further series of transactions from Royal Bank of Canada, SR Boligkreditt, Skipton Building Society and Liberbank.

    • 02:00 PM
  • ASR bids to improve the ‘tradeability’ of its RT1 with €200m tap

    ASR Nederland has asked its bondholders for permission to increase the size of its only restricted tier one (RT1) from €300m to €500m — a move that the Dutch insurer hopes will increase the ‘tradability and liquidity’ of the subordinated debt instrument.

    • 02:00 PM
  • Metro Bank eyes bond market comeback in race for MREL

    After a tumultuous year, the UK’s Metro Bank is readying a return to the bond market to raise debt for its minimum requirement for own funds and eligible liabilities (MREL) ahead of a 2020 deadline.

    • 01:00 PM
  • Top banking supervisor controversially leaves to lead AFME

    Adam Farkas, executive director of the European Banking Authority, will lead the Association for Financial Markets in Europe (AFME), a move that has caused concern among some observers of financial policy in Europe.

    • 12:15 PM
  • Bangkok Bank saves on ‘extremely rare’ Thai tier two

    Strong demand for Bangkok Bank’s dollar-denominated Basel III-compliant tier two transaction allowed Thailand’s largest lender to sell a bigger deal at a tighter price than expected.

    • 10:15 AM
  • ABC Singapore lands tight 3yr FRN

    Agricultural Bank of China’s Singapore branch has sold the tightest three year floating rate note (FRN) from a big four Chinese bank, adding $500m to its coffers.

    • 09:45 AM
  • Covered bond awards 2019: voting patterns

    A breakdown of how investors, issuers and lead managers voted in the covered bond awards survey 2019.

    • 16 Sep 2019
  • Sabadell hits the ‘sweet spot’ as ASB struggles for demand in senior

    Banco Sabadell and ASB Finance launched senior bonds in the euro market on Monday, with the former hitting the ‘sweet spot’ of investor appetite and the latter struggling to achieve the same level of demand as its Kiwi peer ANZ New Zealand had last week.

    • 16 Sep 2019
  • Lloyds ‘delivers last missing piece’ for Virgin’s debut covered bond

    Lloyds Bank attracted a large and diverse order book for its €750m 10 year covered bond on Monday and has provided ‘the last missing piece’ for bankers working on Virgin Money’s debut euro covered bond, which is expected to be announced soon.

    • 16 Sep 2019
  • UniCredit reopens Italian FIG market as investors welcome new government

    UniCredit has become the first Italian bank to launch a new deal since a new government took office in the country. The €1.25bn tier two attracted €3bn of orders and was tightened more than expected, according to one of the leads.

    • 16 Sep 2019
  • MetLife breaks new ground for negative yielding FIG issuance

    MetLife became the first financial institution to launch a new senior bond in euros at a negative yield on Monday, raising €500m at the short end of the maturity curve.

    • 16 Sep 2019
  • Insurers seize favourable conditions to rejig debt stacks

    Allianz and Assicurazioni Generali announced plans for new subordinated bond deals on Monday, as they simultaneously looked to buy back existing bonds well in advance of first call dates.

    • 16 Sep 2019
  • Generali to break open green bond market for European insurers

    Assicurazioni Generali is set to become the first European insurance company to sell a green bond, after unveiling plans on Monday to raise up to €750m of tier two capital for green investments.

    • 16 Sep 2019
  • GlobalCapital Covered Bond Awards 2019: the winners

    Congratulations to the winners of GlobalCapital's Covered Bond Awards 2019.

    • 13 Sep 2019
  • Japanese duo leads Yankee charge in busy week of supply

    Yankee banks joined supply frenzy in US dollars this week, as they looked to take advantage of positive funding conditions.

    • 13 Sep 2019
  • BEA shrugs off weak results with $650m AT1 return

    The Bank of East Asia returned to the market with a Basel III-compliant additional tier one (AT1) deal, paying no premium despite reporting disappointing interim results for the first half of 2019 and amid the turmoil in Hong Kong SAR.

    • 13 Sep 2019
  • Capital markets divided as ECB wheels out big guns once more

    There was a mixed bag of views across the capital markets after the European Central Bank unleashed a new comprehensive stimulus package on Thursday, comprising restarting net bond buying, a rate cut and a tiered deposit rate system for banks.

    • 12 Sep 2019
  • BMO and Rothesay Life bring sterling market to life before ECB meeting

    Bank of Montreal and Rothesay Life made use of the quieter political situation in the UK this week to issue in sterling, in the same week issuance paced down in the euro market ahead of the European Central Bank’s meeting.

    • 12 Sep 2019
  • ‘Sigh of relief’ for banks after ECB unveils new look TLTRO programme

    More banks are expected to take advantage of the third series of targeted longer-term refinancing operations (TLTRO III) after the European Central Bank sweetened the terms of the funding programme on Thursday. Mario Draghi looked set to leave his position as ECB president on a bang, having also announced tiered rates of deposit for banks and a return to monthly asset purchases.

    • 12 Sep 2019
  • Intesa breaks Italian Swiss franc records

    Intesa Sanpaolo Bank Ireland this week printed a bond with what leads said was the lowest ever yield in Swiss francs from an Italian issuer. Following successful outings earlier this year in euros and yen, Italy’s largest banking group by assets turned to Swiss francs on Tuesday with a Sfr225m ($227.3m) five year senior trade that was also the first from an Italian borrower in the currency this year and the largest since the financial crisis.

    • 12 Sep 2019
  • Kommuninvest prints Swedish green note with rare negative yield

    Swedish agency Kommuninvest doubled the size of its June 2023 green bond on Tuesday through a Skr3bn ($309.8m) tap. The tap was issued with a negative yield — rare for the Swedish krona market — and is the issuer’s first negative yielding green print since October 2016.

    • 12 Sep 2019
  • Bank balance sheets growing again after two years of decline

    The amount of assets held by EU banks grew last year for the first time since 2015, according to data from the European Banking Federation, which also found that financial institutions were continuing to build up their capital and profitability levels.

    • 12 Sep 2019
  • Deutsche promotes Lewellen to run IG DCM, Buvat to run levfin

    Deutsche Bank has announced a round of senior appointments in its primary debt businesses, naming Hoby Buvat head of EMEA leveraged finance origination and Mark Lewellen head of EMEA debt capital markets origination.

    • 11 Sep 2019
  • 'Brussels smells green, you can see it and feel it,' says ECBC's Bertalot

    The prospective growth of green and sustainable covered bond funding, and the Covered Bond Directive, were key topics at the well attended European Covered Bond Council’s 30th plenary session, held in Munich on Wednesday, especially with respect to the Pfandbrief market, which celebrates its 250th anniversary this year.

    • 11 Sep 2019
  • Bank of Montreal adds to sterling supply with rare senior bond

    Bank of Montreal was marketing a senior preferred bond in sterling on Tuesday, one day after Rothesay Life gave FIG investors a chance to put their money in tier two in the same currency. The Canadian issuer started its trade with a 15bp-20bp concession, according to a banker off the deal.

    • 11 Sep 2019
  • FWD Group’s $600m perp falls in secondary

    FWD Group has come to the market with yet another unusual transaction, raising $600m but seeing the bond open a whole point lower in the secondary market on Wednesday morning.

    • 11 Sep 2019
  • Achmea responds to speculation over sub debt issuance

    Achmea put out a statement on Wednesday in which it reminded investors to rely on Bloomberg for information about upcoming issuances, amid speculation that it was considering raising restricted tier one or tier two notes.

    • 11 Sep 2019
  • Investors on stand-by for new Italian FIG supply

    Italian bank bonds have performed very strongly as the country has prepared to welcome in a new government, but investors are still waiting for the sector to produce any new debt supply.

    • 11 Sep 2019
  • EU bank credit ratings have been a 'paradox' in recent years, says Moody's

    In the last five years Moody's has raised the average credit rating of the top European banks, but it has simultaneously dropped the average rating on their debt securities. This 'paradox' is down to new EU regulations on bail-inable bonds, the agency said.

    • 11 Sep 2019
  • Credit risk models don’t work with climate change, says EBA supervisor

    As climate change takes hold, banks could incur losses in a very different way from what is typically captured by using credit risk modelling, delegates heard at the European Covered Bond Council’s 30th plenary meeting, held in Munich on Wednesday.

    • 11 Sep 2019
  • Green price ratchet bonds will soon be everywhere

    The sustainability-linked bond issued by Enel on Thursday opens a new chapter in the green finance market. Anyone tempted to think this will be a freak should think again. The idea is sure to catch on.

    • 10 Sep 2019
  • Bazooka or water pistol, Draghi is guaranteed to disappoint

    There is typically a degree of consensus among market participants as to what a central bank will say at its upcoming monetary policy meeting. But, days before the European Central Bank’s Governing Council gathering on Thursday — the most important of the year and perhaps ever — there are wide ranging views as to what its president Mario Draghi will announce at his swansong meeting. Someone will get burned.

    • 10 Sep 2019
  • Rothesay Life hits sterling for blowout tier two

    Rothesay Life chose a quieter day in UK politics to issue a tier two in the sterling market on Tuesday. It also took advantage of the lack of supply in the currency and the deal was oversubscribed four times its £400m size.

    • 10 Sep 2019
  • ANZ New Zealand goes long in senior

    ANZ New Zealand was well received after opting for a longer maturity on its return to the euro senior market this week, welcoming €1.2bn of orders for its €500m 10 year.

    • 10 Sep 2019
  • Dombrovskis keeps CMU brief under Leyen

    Valdis Dombrovskis is set to retain his role as the European Commissioner in charge of financial stability, financial services and capital markets union, after president-elect Ursula von der Leyen announced her new leadership team on Tuesday.

    • 10 Sep 2019
  • Warba Bank mandates for debut senior sukuk

    Kuwait's Warba Bank is embarking on a roadshow to market its first senior unsecured sukuk. The dollar five year note is expected to be printed “around the 3% mark”, according to a DCM banker on the deal.

    • 10 Sep 2019
  • CRH hits the road after six year hiatus

    Caisse de Refinancement de l’Habitat, the specialist French covered bond issuer, has overcome regulatory hurdles and will issue covered bonds following a roadshow.

    • 10 Sep 2019
  • ICBC achieves size and price with Greater Bay Area green bond

    Industrial and Commercial Bank of China has priced $3.15bn of green bonds in US dollars, Hong Kong dollars and offshore renminbi (CNH), achieving a number of firsts in the process.

    • 10 Sep 2019
  • A first for Prima: new Slovakian issuer set for debut covered bond

    Prima banka Slovensko is set to become the third Slovakian issuer of euro covered bonds after it mandated lead managers on Monday for a roadshow.

    • 09 Sep 2019
  • LBBW pays modest Pfandbrief premium

    LBBW issued a well subscribed €650m nine year public sector loan-backed Pfandbrief on Monday at a relatively tight new issue concession compared with many recent negative yielding covered bonds.

    • 09 Sep 2019
  • Investor work pays dividends for My Money Bank

    Specialist French lender My Money Bank SCF (MMB) returned to the covered bond market on Monday to issue its second deal, which attracted a more diverse and larger order book than its first. A positive yield helped, but so did the issuer’s investor relations effort, according to a lead manager.

    • 09 Sep 2019
  • Commerzbank thinly subscribed on return to non-pref market

    Commerzbank attracted only €700m of demand for a €500m non-preferred senior bond this week, with a lead manager suggesting the deal showed the ‘state of the market’ as it welcomes an influx of tightly priced supply.

    • 09 Sep 2019
  • De Volksbank mops up demand on green senior debut

    De Volksbank was three times subscribed for its debut green bond this week, despite not offering much in the way of yield or new issue premium to its investors.

    • 09 Sep 2019
  • Groupama switches old for new with tightly priced T2

    Groupama seized an opportunity to replace one of its outstanding tier twos with a cheaper set of capital instruments on Monday, drawing on sizeable demand for higher yielding assets in the euro market.

    • 09 Sep 2019
  • Citi jumps on Sofr as borrowers run rampant

    FIG borrowers jumped into the dollar market with lightning speed this week, snapping up attractive financing rates.

    • 06 Sep 2019
  • Bonds news in brief: Greater China credits head to dollars

    Six Greater China borrowers, including Industrial and Commercial Bank of China (Macau) and an unrated property developer, have wooed bond investors to their new dollar deals.

    • 06 Sep 2019
  • UBS replaces CCS with new global banking division

    UBS is revamping its investment bank to put the unit on a more global footing and boost collaboration across divisions, in a move that finally draws a line under the Andrea Orcel era.

    • 05 Sep 2019
  • Brexit stupefies investors as Bank of Ireland misjudges mood

    Bank of Ireland was unable to complete the sale of a tier two transaction this week, after the UK Parliament descended in chaos. Bond buyers have by and large taken a pragmatic approach during Brexit negotiations, but market participants said that on this occasion the Irish issuer had “misjudged” how nervous investors were, writes David Freitas.

    • 05 Sep 2019
  • Lagarde hints at further unconventional ECB policy

    Christine Lagarde has given a strong hint she will persist with the European Central Bank’s highly accommodative monetary policy if she takes over as its president in November. Lagarde also suggested the ECB would move to make its portfolio more green.

    • 05 Sep 2019
  • CS and Sparebank go long to avoid negative yields

    Credit Suisse and SpareBank 1 priced deals in senior format this week, choosing longer maturities to avoid entering negative yield territory. SpareBank 1’s €500m green bond attracted demand of €700m but leads were not able to tighten pricing to the tight end of their price guidance.

    • 05 Sep 2019
  • Khan do attitude: Ermotti looks to secure legacy

    The arrival of star Credit Suisse banker Iqbal Khan gives UBS’s chief executive Sergio Ermotti the chance to achieve his ambition of reaching a decade at the helm of the bank while securing a smooth transition, writes David Rothnie. Meanwhile, UBS’s restructuring, announced on Thursday, marks a focus on intragroup collaboration.

    • 05 Sep 2019
  • Early 2020 for next UK sukuk

    The UK is preparing to launch its second sukuk in early 2020, said city minister John Glen on Wednesday in a speech at an Islamic Finance Week event held at Mansion House.

    • 05 Sep 2019
  • Beazley plumps for dollars over sterling for $300m T2

    Beazley Insurance dac eschewed the sterling market to raise $300m of tier two capital in the dollar market this week, ending up with a trade that was four times subscribed by Reg S investors.

    • 05 Sep 2019
  • FIG senior market set for Friday feast

    Despite no deals coming on Thursday, improving conditions could see other FIG borrowers join CaixaBank, ANZ New Zealand and ASB Finance with senior bonds as soon as Friday, bankers believe..

    • 05 Sep 2019
  • SG Aussie AT1 fails to reach heights of rivals

    FIG bond bankers are worried, as one put it, that “the steam is coming out of the Kangaroo market” after Thursday’s additional tier 1 (AT1) deal from Société Générale failed to reach the heights of deals from UBS and BNP Paribas earlier in the summer.

    • 05 Sep 2019
  • HSBC Canada ‘resonates’ with investors

    HSBC Canada this week issued a larger covered bond and with a higher subscription ratio than it managed on its inaugural deal, reflecting that its marketing efforts had “really resonated with investors”, according to the bank’s head of balance sheet management, Marty Halpin.

    • 05 Sep 2019
  • DekaBank lacks ‘momentum’ amid rates sell-off

    DekaBank managed to raise 10 year Pfrandbrief funding on Thursday, but with rates volatility spiking higher, the deal lacked lustre, similar to many covered bonds issued lately.

    • 05 Sep 2019
  • Commerz CFO Engels leaves for Danske

    Danske Bank has appointed Stephan Engels as chief financial officer, leaving the same post vacant at Commerzbank. The move comes as the Danish lender has been dealing with the fallout from a money laundering scandal, while its German counterpart has warned of difficult business conditions.

    • 05 Sep 2019
  • Bank of Jinzhou’s woes to shake support for AT1s

    Chinese city commercial bank Bank of Jinzhou plans to cancel coupon payments on its dollar additional tier one bonds for a year, the first such case from a mainland lender. The “shock” move from the beleaguered firm could shake investors’ risk appetite for bank capital deals from the country, writes Morgan Davis.

    • 05 Sep 2019
  • RCBC adds to Philippines’ green momentum

    Investors were given a double dose of green paper from the Philippines this week, as Rizal Commercial Banking Corp (RCBC) rolled out a $300m sustainability bond a day after Bank of the Philippine Islands (BPI) sealed a green deal.

    • 05 Sep 2019
  • CCB Leasing returns for $300m tap

    CCB Leasing added $300m to its 3.5% 2024 bonds on Wednesday, taking the total size of the transaction to $800m.

    • 05 Sep 2019
  • Sparebank struggles to ratchet in pricing on green deal

    Sparebank 1 priced a seven year senior preferred bond in green format on Wednesday at mid-swaps plus 65bp. The €500m bond attracted demand of €700m but leads were not able to tighten pricing to the full extent of their ambitions.

    • 04 Sep 2019
  • Erste flies high as Cred Ag gives spread

    Erste Group and Crédit Agricole competed for covered bond investors’ attention at the long end of the curve on Wednesday with a rise in yields helping boost demand, particularly for the Austrian deal which started with a generous spread. At the same time Deutsche Hypo issued a three year.

    • 04 Sep 2019
  • RBI hoovers up demand for tier two

    Raiffeisen Bank International sold a tier two bond this week, tightening pricing by 40bp. The trade was supported by hefty investor demand of €2.7bn, more than six times the deal's €500m size.

    • 04 Sep 2019
  • FIG investors show ‘apathy’ for secondaries

    Financial institution investors, desperate for any sort of yield pick-up are keeping their cash away from secondaries in the hope of earning new issue concessions in a rejuvenated primary market.

    • 04 Sep 2019
  • Rarity of BPI deal hooks investors

    Investors flocked to Bank of the Philippine Islands’ $300m green bond on Tuesday, snapping up the rare deal from a bank in the southeast Asian country.

    • 04 Sep 2019
  • Hyundai Capital axes dollar bond sale

    South Korea’s Hyundai Capital Services pulled a dollar bond sale on Tuesday due to poor market conditions. Bankers away from the transaction blamed the failure on excess supply in the US.

    • 04 Sep 2019
  • BOC Aviation, Clifford Capital ride market turbulence for bonds

    BOC Aviation and Clifford Capital navigated choppy market conditions successfully on Tuesday to raise dollar bonds from investors.

    • 04 Sep 2019
  • Covered trio to hit market with more negative yields

    Deutsche Hypo, Erste Group and Credit Agricole SCF have mandated leads for covered bonds that are all expected to carry negative yields.

    • 03 Sep 2019
  • Bank of Ireland postpones tier two as Brexit fears swirl

    Bank of Ireland abandoned plans for a new €300m tier two on Tuesday after struggling to build much enthusiasm around the transaction. Market participants said the Irish lender had fallen victim to growing fears of a ‘no deal’ Brexit.

    • 03 Sep 2019
  • ING follows BBVA and Swedbank in AT1 dollar rally

    ING sold a dollar-denominated additional tier one (AT1) this week, adding an influx of supply in the asset class in recent weeks. It will have the option to redeem its new bonds twice a year after the first call date, instead of the usual five years in all of its outstanding bonds.

    • 03 Sep 2019
  • Credit Suisse goes long in senior format

    Credit Suisse was marketing a 10 year bullet senior bond on Tuesday, avoiding negative yields by choosing a tenor longer than seven years. At the same time, Sparebank 1 announced it was readying its green debut in senior format.

    • 03 Sep 2019
  • Price transparency lifts demand for HVB’s Pfandbrief

    A transparent pricing approach was integral to the success on Tuesday of UniCredit AG’s (HVB) five year Pfandbrief, which was launched with a deeply negative yield.

    • 03 Sep 2019
  • BPCE prepares to hop into Kanga pouch

    French bank BPCE has mandated lead managers for a potential five year senior preferred deal in the Australian dollar market — its first this year in the currency.

    • 03 Sep 2019
  • Westpac goes big as MTNs move into peripheral markets

    Westpac placed just under HK$13.4bn into the Hong Kong market across two MTNs last week — the pair of bonds are its largest ever in the currency, according to Dealogic. The notes came in a busy week for niche issuance, and bankers have posited that this move into the peripheral markets comes as a response to the global fall in yields.

    • 03 Sep 2019
  • FSB appoints Himino as committee chair

    The Financial Stability Board has appointed Ryozo Himino as chair of its standing committee on supervisory and regulatory cooperation.

    • 03 Sep 2019
  • BMO switches Cook for Wortzman

    BMO Capital Markets’ SSA banker Lindsay Wortzman is transferring to Toronto, and to replace her the London team have picked up Samantha Cook from Nomura.

    • 03 Sep 2019
  • CFF enters ‘new paradigm’ with eight year

    Compagnie de Financement Foncier (CFF) unearthed strong demand for the first negative yielding non-German covered bond of the year, and the first with a long tenor.

    • 02 Sep 2019
  • Mizuho launches five and 10 year bonds just 2bp apart

    Mizuho issued five year and 10 year senior bonds this week, fixing spreads for the two instruments at 65bp and 67bp, respectively.

    • 02 Sep 2019
  • Rabobank sets record low coupon for euro AT1

    Rabobank launched an additional tier one (AT1) bond with a record low coupon in the euro market this week. The Dutch bank started with price thoughts of 3.625%, but tightened by 40bp to smash through the previous record of 3.5%, set by Nordea in 2017.

    • 02 Sep 2019
  • BNPP, SG bankers among most negative on CEO, outlook

    Compared with last year, employees at BNP Paribas and Société Générale are more disapproving of their chief executives and less optimistic on the outlook for their firms over the next six months, according to analysis carried out by UBS.

    • 02 Sep 2019
  • Bank of Jinzhou to cancel coupon payment on AT1

    Embattled Chinese bank, Bank of Jinzhou, has proposed cancelling coupon payments on its offshore additional tier one bonds for a year, the first such case from a Mainland lender.

    • 02 Sep 2019
  • Yes Bank dollar bonds tumble on downgrade

    Dollar bonds from Yes Bank, one of India’s largest private sector banks, have taken a big hit recently following Moody’s downgrade of the credit.

    • 02 Sep 2019