Germany

Schuldschein arrangers have actively prevented US investors from lending in the market over the past few years, for fear of the consequences of US regulators ruling the instrument a bond security as opposed to a loan. But as new arrangers enter the market, the old guard’s ability to protect their cherished loan instrument — and their market share — is in question, Silas Brown reports.

Germany is considering four options for its first green or sustainable bond issue, which is likely to come next year. But this will not mean an increase in borrowing — Germany will finance its climate change investments with taxes.

Landesbank Baden-Württemberg has long held the crown as the top Schuldschein arranger, but even as the market internationalises the Stuttgart-based bank has retained its ability to cope with deal flow, as well as push the market beyond its usual borders.

NRW.Bank was well subscribed for its inaugural Sonia-linked floating rate note on Tuesday, with the books closing just one hour after opening.

Demire, a German real estate company, issued €600m of unsecured senior notes on Monday, reducing its average financing costs by 90bp. Investors raised some concerns over the deteriorating German economy and big private equity sponsor Apollo but they lapped up the issue nonetheless.

Hannover Re has added to a string of recent new issuance from European insurers, opting for an unusual maturity structure for its tier two this week.

NRW.Bank has picked a syndicate of three banks to lead its inaugural Sonia-linked floating rate note, as it looks to become the second German agency to issue a public trade in the format.

German car parts maker ZF Friedrichshafen has closed its Schuldschein and agreed to take just over €2bn, according to market sources. Schuldschein participants believe this demonstrates the private market’s ability to compete with its public equivalents.

German car parts maker ZF Friedrichshafen has closed its Schuldschein on Friday, and is about to decide how big to make the deal. ZF's €2.2bn issue in November 2014 is the biggest deal the market has ever seen — but several sources believe this transaction may be bigger.

Loan heads see green light flash across a torpid picture - Porterbrook launches US PPs under sustainability framework - Bunzl turns bank debt sustainable - ICBC London claims first in EMEA bank green loans

The fragility of Europe's IPO market was hammered home again this week when software company TeamViewer, widely seen as the hottest flotation of the year, whose bookbuild had run according to the textbook, had the legs kicked from under it on its first day of trading after US and UK political shenanigans unnerved investors. Sam Kerr reports.

September has been a bumper month for equity-linked issuance in Europe, with over €3.7bn of new convertible bond sales, according to Dealogic data.