Germany

Société du Grand Paris hoovered up strong demand this week to sell the longest ever public syndicated green bond. The French agency was joined by three other public sector borrowers in raising socially responsible bonds this week, including the first European city to issue a social-labelled bond.

Covered bonds issued this week by Berlin Hyp and Deutsche Hypo would have struggled without demand from the European Central Bank, suggesting the central bank is crowding out investor demand from the private sector.

Société du Grand Paris impressed the SSA market on Tuesday with a series of superlatives. It sold its biggest ever bond with the longest ever maturity for a syndicated green bond in any asset class. The City of Munich hit another landmark with the first social bond from a European city.

Deutsche Hypo was unable to tighten pricing as much as it had hoped for a seven year Pfandbrief it issued on Tuesday. Demand was sufficient to cover the deal, excluding the European Central Bank's order, but only just enough, giving investors more power to resist spread cuts.

The euro market had no trouble digesting a pair of similar trades from Landesbank Baden-Württemberg (LBBW) and Svenska Handelsbanken this week, with both banks printing non-preferred senior bonds at 58bp and paying a small new issue premium to investors.

Deutsche Bank has unveiled plans to sell its first additional tier one (AT1) in more than five years, with market participants now expecting the German lender to call a bond that had once seemed certain to be left outstanding.

Société du Grand Paris and the City of Munich will break new ground in the socially responsible bond market this week as the pipeline for green and social debt from public sector borrowers builds.

Deutsche Hypo has mandated lead managers for a Pfandbrief deal, choosing the same seven year maturity that Berlin Hyp opted for on Monday.

Guarantor: Federal Republic of Germany

The Schuldschein market is having a quiet, Germany-focused start to the year. But Schuldschein agents are confident investor demand remains as strong as ever.

Three SSA issuers brought dollar deals to market on Wednesday, hitting screens in a variety of formats and tenors, making the most of excellent conditions to pull off impressive deals. A fourth is lined up for Thursday.

Santander Consumer Finance in Germany attracted excessive demand for its debut benchmark Pfandbrief which offered a considerable pick-up over swap rates. However, demand was more tentative for La Banque Postale’s 15 year, possibly due to renewed volatility in rates.