France

Société Générale was keen to highlight improvements in cost and risk control when reporting its earnings for the second quarter on Wednesday, but growing litigation costs and falling trading revenues cast a shadow over the group’s results announcement.

Tikehau Capital, the French alternative asset manager, has raised €702m to accelerate its development, after its rights issue attracted substantial oversubscription by new and existing shareholders.

Ivanhoé Cambridge, the Canadian real estate company that is the largest shareholder in Gecina, has sold 87% of its allocation of rights in the French property group's €1bn rights issue, through a block trade on Tuesday night.

Equity capital markets in Europe are beginning to wind down for the summer break, with just a handful of live deals left.

Gecina, the French real estate investment trust focused on residential, office and healthcare properties, will raise €1bn through a fully underwritten rights issue to partly refinance its acquisition of Eurosic.

The recent boom in high yield bond issuance has left traces of investor indigestion, but French data manager Infopro Digital enjoyed a warm reception for its rare loan-to-bond refinancing deal.

Rating: Aa2/AA/AA

The European Financial Stability Facility is set to enjoy enviable conditions when it comes to the euro market next week — during which the Greek sovereign could also make an appearance. Demand at the long end has been particularly strong due to a yield spike last week, which KfW and SCNF Réseau have since taken advantage of.

The private placement market is proving its worth at the long end in euros and with dollar floaters, helping issuers make the most of excellent conditions.

Direct Energie, the French gas power stations group, raised €130m of new capital on Tuesday evening in a block trade, to finance its acquisition of renewable energy group Quadran for an initial €303m.

SNCF Réseau launched its first 30 year green bond on Tuesday, following the example set by European Investment Bank at the end of June. KfW was also out in euros with a long 15 year — and more borrowers might be tempted to bring euro deals at the long end, said bankers.

Only one new issue was announced on Monday in the European corporate bond markets. While Telekom Austria brought a tap of a recent deal, the French fleet management and car leasing company, ALD, came to market with its largest transaction to date, offering a longer tenor than any of its previous deals.