France

HSBC France and Svenska Handelsbanken avoided issuing senior bonds at negative yields in a busy new issue market on Tuesday, but bankers said it was only a 'matter of time' before someone takes the plunge below 0% with an unsecured deal.

This week's funding scorecard looks at the progress French agencies have made in their funding programmes as we reach the end of August.

Equity capital markets investors are becoming increasingly focused on sustainable investments, particularly those linked to renewable energy. The strength of this demand could be tested this autumn, should Spanish renewable energy firm Zero-E choose to list.

The IPOs of private equity-owned French glassware maker Verallia and of state-owned Française des Jeux (FDJ), the national lottery operator and sports betting company, are both attracting healthy interest in pre-marketing, but sources have expressed some concern that one deal could be taken off the table.

SNCF Réseau steamed ahead with a new century bond issue this week, its second and largest deal to date, amid declining rates that has seen more and more investors take a risk at the ultra-long end in return for yield pick-up.

The World Bank placed its first Hong Kong dollar deal of its 2019/2020 funding year last week. The supranational chose to link the private placement to the Hibor benchmark, a now little seen structure that was likely the result of a "very specific enquiry", according to one MTN banker away from the deal.

A 12.5m share trade in Elis, the French workwear and laundry group, was covered quickly last night following a rare auctioned block won by Morgan Stanley.

Worldline, the French payments company, attracted strong investor demand for a negative-yielding €600m convertible bond due in 2026, to refinance its acquisition of a minority stake in equensWorldline, its transaction processing subsidiary.

Caisse des Dépôts et Consignations has returned to the Samurai market with what the issuer and leads said was the lowest ever coupon in the format.

A cavalcade of “familiar names” have come to the market over the last week. SSAs, corporates and FIG issuers printed across the euro curve, while a trio of supranationals were also active in emerging market currencies.

Italian manufacturer Industria Macchine Automatiche (I.M.A) has raised €50m of Euro private placement notes (Euro PP).

French property company Foncière Verte has sold €85m of privately placed bonds.