France

UniCredit’s search for a more efficient corporate structure shows how an incomplete Banking Union is beginning to weigh on pan-European financial institutions.

After making its debut in the capital markets last week, France’s Action Logement Services (ALS) plans to issue bonds and private placements across various maturities under its 100% sustainable euro medium-term note (EMTN) programme.

Independent external auditors are looking into whether the European Commission has been successful in its work towards creating a capital markets union over the last five years. They are set to publish a report containing their recommendations for the project in 2020.

French car parts supplier Faurecia dipped into the bond markets again as it prepares to take over full control of its joint venture with Continental. It is adding €250m of senior notes to the €500m of 2026 notes it issued in the spring.

Sumitomo Mitsui Banking Corporation (SMBC) is expected to open order books on Tuesday for a dollar and euro covered bond. Deutsche Kreditbank will follow with its social Pfandbrief on Wednesday. Credit Mutuel Arkea will see investors with plans to issue its first public sector covered bond.

Crédit Agricole is planning to sell its first Panda bond in late November, according to two sources. It will be the maiden renminbi-denominated bond to be sold in China by a French bank and the first syndicated Panda from the European country.

Investors have been keen to lock in the money they made in the FIG bond market this year, rather than add new risk. This week, Rabobank added a green element to its latest bond in an attempt to encourage investors out of their shelters.

The European Stability Mechanism has chosen a five year tenor to kick off its funding for the fourth quarter. Meanwhile, a French public sector agency is out with its debut sustainable benchmark bond.

The French government has pulled the trigger on the IPO of Française des Jeux, the gambling company that is also the operator of the national lottery, a key part of president Emmanuel Macron’s plans to privatise state assets.

A block trade in Eurazeo, the French private equity firm, was sold on Thursday night but not covered, with banks bemoaning a late launch of the trade.

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The Bel Group, the French cheese company behind brands Babybel and The Laughing Cow, has become the first company to issue Euro private placement (Euro PP) notes with sustainability-linked margins, following in the footsteps of the loan market, the Schuldschein market and subsequently the bond market.