Germany

Investors have piled into the €866m IPO of Rocket Internet-backed Delivery Hero, with the deal covered across the price range just two days into bookbuilding, according to bankers.

Increasing numbers of commercial banks are investing in seven year Schuldschein loans, as attractive pricing and allocation is luring the lenders further along the credit curve.

French agency Société de Financement Local (SFiL) raised $1bn with its first ever dollar bond on Wednesday, while the German State of North Rhein-Westphalia pushed out its curve to 2048.

An overnight share sale in Scout24, the Berlin-based digital classified advertising group, was priced at a 6% discount on Tuesday, raising €331.7m for the vendors.

Deutsche Pfandbriefbank (Pbb) was unable to build a large order book for its first public sale of tier two debt on Wednesday, having encountered a more “challenging’ environment” following Banco Popular’s resolution which wiped out investors in both additional tier one and in tier two.

Deutsche Telekom and a group of shareholders in Scout24, the digital classified advertising group, are in the market this evening to sell a possible €341.4m stake.

Delivery Hero, the Rocket Internet-backed online food delivery company, set a price range for its €747m to €866m IPO this morning, and will open the bookbuild on Tuesday.

Klöckner Pentaplast, the German plastic packaging maker, has in store a potential subordinated bond deal to fund its merger with UK peer Linpac. Some see the issue as a test on how real the risk appetite is in the European high yield market.

The revival of equity-linked issuance in Europe continued this week with three deals, all of the kind investors are looking for: from smaller companies with higher credit spreads and interesting equity stories.

Roughly 40 transactions — if expectations are correct — will close this Schuldschein quarter, exceeding the record 35-37 deals priced in last year’s final quarter. But three Schuldschein bankers believe that if the market becomes even busier investors will be forced to decide between issuers, when, given more time, they would lend to more.

Deutsche Hypo managed to attract only a just subscribed order book for its €500m eight year covered bond this week, despite paying an attractive new issue premium. Bankers on the deal dismissed concern that uncertainty over the issuer’s future ownership had worried investors and blamed market conditions instead.

Germany’s Deutsche Pfandbriefbank (Deutsche Pbb) will meet investors next week ahead of its inaugural tier two deal, as market participants appeared to shrug off the consequences of Banco Popular’s resolution last week.