Germany

After the recent equity market volatility, Siemens has decided to push on with the spin-off of its healthcare division, which promises to be the biggest IPO in Germany since the flotation of Deutsche Telekom in 1996. The deal is the first in a promising pipeline of corporate carve-outs this year, writes Aidan Gregory.

Grand City Properties, the German residential property firm, printed eight and a half year Swiss franc bonds on Wednesday, and also sold a new nine year in euros on Monday alongside a tender for some outstanding bonds and convertibles.

The public sector bond market in euros is in rude health thanks to the return of stability at higher yields. Two borrowers took advantage of the conditions to pull off smooth executions with skinny new issue premiums on Thursday.

Grand City Properties, the German residential property firm, printed eight and a half year bonds on Wednesday, in the second foreign real estate deal in Swissies since 2013.

Deutsche Boerse's new CEO, Theodor Weimer, said this week that, given the low market volatility of 2017, there were "headwinds" for the exchanges group, but that there was opportunity heading into 2018.

The euro SSA market is returning to a more aggressive pace of issuance after a slackening in tempo last week. Two borrowers raised a combined €3bn on Wednesday and another pair are set to print on Thursday.

Jacquet Metal Service, the French steel parts and distribution company, has raised €150m with its second Schuldschein.

Spain’s first trip to the long end of the curve in almost two years met with an overwhelming response, as the sovereign received one of the largest books ever for a 30 year bond.

The Schuldschein market's reputation as a gentlemanly club is at risk of diverging from reality. Competition is becoming fiercer and arrangers are employing every weapon in their armouries to win mandates. This is how capital markets behave — but the Schuldschein market should not follow.

German supermarket group REWE has doubled its initial target size of €500m, becoming the first corporate in 2018 to place a €1bn Schuldschein loan.

In July 2017, German property company Grand City Properties announced a tender of its 2021 bonds alongside a new nine year issue. On Monday it repeated the process, offering to buy what remained of the 2021 bond it didn’t buy in July and adding a tender for its 0.25% 2022 convertible bonds.

Veteran UniCredit banker Jan Kupfer, will now head corporate and investment banking in Germany for the firm, following Michael Diederich's move to the role of country chairman and chief executive of UniCredit’s German entity. Diederich’s move was announced by the bank in November.