Germany

NordLB has mandated joint leads for a 10 year Pfandbrief which some bankers believe will prove an ‘interesting’ trade, reflecting the view that spreads are tight to competing agency paper.

The trend for green debt issuance is set to touch the US private placement (PP) market this year, bringing yet another segment of the debt capital markets within its ambit.

The euro market is providing borrowers with superb execution — KfW gathered its largest ever book for a 10 year on Tuesday — but investors are requiring healthy new issue concessions in order to commit.

Deutsche Bank opened books on three tranches of non-preferred senior debt in the euro and sterling markets on Tuesday, becoming the latest European financial institution to knock out multiple funding obligations in one go.

Jacquet Metal Service, the French steel construction and distribution company, has launched its second Schuldschein, aiming it at Asian and European commercial banks.

GEA Group, a maker of equipment for the food processing industry in Düsseldorf, has launched a €150m dual tranche Schuldschein, hoping to attract a wide variety of investors.

KfW and Dexia Crédit Local are first out the blocks in what looks set to be a busy euro market for public sector borrowers this week.

Scope Ratings, a rating agency in Berlin, has warned that Schuldschein issuance may fall as a consequence of the 2017 credit difficulties of international borrowers Carillion and Steinhoff International.

Vonovia, Germany’s largest housing association, may have sold the primary market's only investment grade corporate bond on Monday but as its order books showed, conditions remain very receptive for issuance.

The sterling market had a healthy opening week in the public sector with three deals raising a combined £1.9bn, and there is plenty more in the pipeline, according to syndicate bankers.

LBBW, Santander UK and Westpac all enjoyed fair demand for seven year covered bonds issued this week, suggesting good scope for further issuance in this tenor.

The Schuldschein pipeline is filling up fast, and German blue chips, mostly absent last year, are considering returning with benchmark deals, bankers said this week. If so, the Schuldschein market will look to add these chunky transactions to a repeat of last year’s heavy deal flow.