France

Three euro benchmarks surfaced on Wednesday including the first from Axa in four years, the first euro benchmark from BRFkredit and a dual tranche deal from Crédit Agricole which, by virtue of its €3.25bn size, is the most notable deal of the year so far. Despite these successes, traders fear the spread tightening run may be close to its end.

The €150m floating rate note issued on Tuesday by Parex Group, the French construction chemicals manufacturer, has single-B ratings. However, high yield market participants said they need to see more issues before being able to draw clear conclusions about pricing for single-B issuers.

Caisse d'Amortissement de la Dette Sociale found strong demand at the five year part of the dollar curve on Tuesday, as L-Bank delayed a deal in the same currency and tenor.

As the European high yield market shows signs of becoming friendlier to borrowers, French car parts supplier Faurecia on Tuesday offered €500m of notes to redeem a €490m unsecured bond.

Parex Group, the French producer of chemicals for the building industry, began roadshowing on Monday for a €150m floating rate note, in the busiest month yet this year for the European high yield market.

UNITe, the French renewable energy producer, has completed its first green Euro private placement. The deal will allow the company to draw the funding in instalments, a new feature for Euro PPs, though common in the US PP market.

China’s decision to provide easier access to its bond market for foreign asset managers has not diminished the value of the renminbi qualified foreign institutional investor (RQFII) scheme, according to Matthieu Bailly, CEO at Octo Asset Management.

After over a month with no Obligations Foncières supply, Caisse Française de Financement Local (Caffil) and Compagnie de Financement Foncier (CFF) returned to the primary covered bond market on Monday.

Rating: Aa3/A/A+

Veolia Environnement, the French water, waste and power company, joined on Tuesday the parade of investment grade blue chip companies launching convertible bonds at attractive terms — in this case, a negative yield and very high conversion premium.

SMCP, the French fashion firm controlled by KKR, registered its document de base with regulators on Tuesday, in the first step towards a possible IPO.

After over a month with no French supply, Caffil and Compagnie de Financement Foncier returned to the primary market on Monday, respectively launching a tap and a new benchmark which both met with a strong reception.