France

Public equity investors lag behind private funds in owning renewable power assets and are missing an opportunity to get in early on Europe’s next big infrastructure asset class, according to Sébastien Clerc, chief executive of French independent power producer Voltalia.

Rating: /AA/AA

With the quarter’s end approaching and the G20 meeting starting on Friday, the primary market saw a busy period across all asset classes on Monday, as issuers rushed to frontload supply while Skandinaviska Enskilda Banken (SEB), Nykredit Realkredit and Société Générale lined up for deals in euros.

Voltalia, the French renewable power producer, launched a €376m rights issue on Monday to finance an increase in capacity, and won a new investor — the European Bank for Reconstruction and Development. This is believed to be the first time the EBRD has bought a public equity in western Europe.

Agence Française de Développement (AFD)’s annual borrowing programme is expected to rise sharply in the coming years as a result of increased lending to developing countries.

Axa SFH issued its debut covered bond on Thursday, attracting a comfortably oversubscribed order book for the positive yielding eight year, which was priced at close to fair value. At the same time, Nationwide Building Society took advantage of the Swiss National Bank’s more generous repo arrangements to issue a three-part covered bond denominated in Swiss francs.

Voltalia, the French renewable power producer, has launched a €376m rights issue to finance increased capacity, and has won a new investor in the European Bank for Reconstruction and Development (EBRD).

Tikehau Capital, the French alternative investment manager, plans to expand into new markets and assets after completing the largest equity capital raise in France of the year so far.

Investors poured into Agence Francaise de Developpement (AFD)’s 10 year euro benchmark on Tuesday, allowing the French agency to issue its largest ever trade in the currency.

BNP Paribas on Tuesday offered a 12 year tier two bond in bullet format, making use of favourable conditions to offer investors a chance to invest in a longer dated deal.

Agence Francaise de Développement was the only public sector borrower to mandate banks for a new benchmark bond on Monday, as squeezed yields cause issuers to hold off from the primary market.

CNP Assurances said on Thursday that it had picked banks to arrange the sale of a green tier two, adding its name to only a small list of financial borrowers that have sought to bring in green funding in a subordinated format.