Germany
-
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. -
LBBW had enough support from investors to price a new additional tier one (AT1) with hardly any new issue premium on Monday, having been pushed into entering the asset class for the first time as a result of recent changes to the rules on bank capital in Europe.
-
Berlin Hyp on Monday launched its first preferred senior bond in green format. The German issuer chose a 10 year maturity and quickly attracted orders, supported by an investor community that follows the bank’s frequent green issuance.
-
Berlin Hyp announced on Friday that it intended to sell a preferred senior bond in green format. It is the second German bank this week to disclose intentions to market a bond, following LBBW.
-
Instituto de Crédito Oficial (Ico) and Investitionsbank Berlin (IBB) found strong demand in the short end of the euro curve on Wednesday, which SSA bankers are calling the new sweet spot, despite the deeply negative yields.
-
Negative rates are expected to persist in covered bonds, forcing investors to widen their search for value. And with spreads likely to tighten as the European Central Bank ramps up buying from November, some are looking to local currency Nordic markets.
-
Deutsche Kreditbank (DKB) has mandated leads for a roadshow ahead of a planned €500m Blue Social Pfandbrief that will finance public water and waste management facilities, to be issued under the bank’s existing social bond framework.
-
Landesbank Baden-Württemberg (LBBW) met investors this week to discuss a debut sale of additional tier one (AT1) bonds. Changes in regulation are prompting issuers to seek new deals in the asset class to optimise their capital layers.
-
Shares in Wirecard, the German payments firm, rose by as much as 8.2% on Monday morning after the company called in KPMG to conduct an independent review into its accounting practices. However, the exchangeable bonds issued by SoftBank to derisk its investment in the company fell further, proving little relief to equity-linked investors that bought into the deal.
-
German home improvement and garden supplies chain Hornbach issued €250m of senior unsecured notes on Thursday, for a coupon of just 3.25%. While the retail sector in general makes investors wary and Germany is lurching towards recession, investors showed confidence in the home improvement market.
-
BMW Finance returned to the Panda bond market with a Rmb3bn ($424m) dual-tranche private placement note. It was the company's third outing this year, but this time the German automaker substituted the three year tranche with a two year note.
-
