Germany

Barclays began marketing a multi-tranche Samurai trade on Monday, as some FIG bankers claimed European banks were still baulking at the new issue premiums being offered by US visitors to the euro market.

Covestro, the polymer producing unit of Bayer, this morning released its intention to float (ITF) in Frankfurt, kicking off the first substantial listing process after the summer lull.

After the first week of proper business in European equity capital markets since the August shutdown, the early signs are good: investors are open to buying new deals.

The buoyant trend in the equity block trade market continued on Thursday evening, as Deutsche Börse raised €200m to finance its acquisition of 360T Trading Networks with a tightly priced sale of treasury shares.

State of North

Commerzbank, Caisse Francaise de Financement Local (Caffil) and Bayerische Landesbank (BayernLB) invigorated the long end of the covered bond market this week with 10 year deals, a duration which had not been seen for over four months.

UniCredit Bank Austria (Baca) returned to the covered bond market on Tuesday to issue the first Austrian Pfandbrief since the country’s Financial Markets Authority (FMA) announced a debt moratorium on bonds issued by Heta Asset Resolution AG (HAR).

Middle market investment bank Baird has hired a head of investment banking for Germany, Austria and Switzerland, a new role at the firm.

Bayerische Landesbank (BayernLB) issued the third 10 year covered bond of the week on Thursday precisely matching Commerzbank in size and spread. With the European Central Bank expected to maintain an accommodative bias at this afternoon’s press conference and global deflationary forces back in play, duration could be back in vogue.

Activity in the covered bond primary market continued at a brisk pace on Wednesday as RBC, DG Hyp, Caffil and Erste Bank priced transactions, taking the deal count this week to 10. Despite mixed receptions, issuers have been able to raise over €7bn, with over €3bn issued on Wednesday, and at levels that look attractive compared to senior unsecured financials.

Bayerische Landesbank has mandated leads for a euro denominated public sector backed covered bond that is likely to be launched on Thursday.

The German State of North-Rhine Westphalia is planning its next green bond to be bigger and potentially longer than a debut earlier this year.