France

The IPO of Believe, the French digital music company, was covered on its full, if smaller, deal size on Friday morning, bringing some joy to an IPO market that continues to be hit by volatility and investor reticence over new deals.

French engineering company Vallourec has unveiled plans for a €300m rights issue to help return its balance sheet to a sustainable footing, following a recovery in the oil industry after the slump in demand caused by the Covid-19 pandemic.

Bouygues, the French industrial group, sold its final large block trade in Alstom on Tuesday night in an effective clean-up. Investors jumped at the last chance they had to buy shares in the French rail company from Bouygues.

PrimaryBid, the app that helps UK retail investors invest in share sales by London-listed companies, is launching in France as part of its ambition to expand into markets across Europe.

French digital music company Believe has fixed the terms for its €300m IPO on Euronext Paris, after scaling back the deal size amid a challenging market for new stockmarket listings in Europe.

Région Île-de-France

Bpifrance launched a rare Friday deal this week, raising €1bn with a 10 year benchmark and managing to move the spread 3bp.

Prospects for companies to issue more social bonds rose this week, with the debut issue by Electricité de France, a borrower with a long and influential track record in the green bond market.

Equity capital markets participants are predicting the return of exchangeable bonds as a way for large corporates to sell crossholdings or subsidiaries to raise funds without offering the big discounts to investors that come with a block trade. Two deals this week highlighted the importance of the product, a €538m deal by French utility Engie, selling shares in Gaztransport Et Technigaz (GTT) and bonds exchangeable into its shares, and a $1.64bn financing package sold by Adnoc, selling shares and exchangeable bonds in subsidiary Adnoc Distribution.

Bpifrance has announced a euro benchmark, following in the footsteps of two other French issuers that came to market this week.

European banks made the most of an improving tone in the euro market this week, piling on top of one another to access funding in a small but supportive window.

Portuguese insurance company Fidelidade is looking to sell a tier two bond this week, three years after first exploring the idea of issuing a subordinated debt instrument.