Germany

Adler, the German real estate company listed in Frankfurt, intends to issue a €175m mandatory convertible bond to help fund the acquisition of MountainPeak Trading Limited.

The close trade links between Germany and China are the main driver for a promising German RMB market. Marcus Sehr, global head of institutional cash, global transaction banking, at Deutsche Bank, tells GlobalRMB that new trade transactions should be the real key to promote more local RMB use.

A report by Scope Ratings argues that the German corporate Schuldschein market is more heavily populated with high yield issuers than has previously been acknowledged.

German healthcare group Asklepios is marketing a Schuldschein loan for €250m, but this should grow much larger, according to a banker close to the deal.

Tele Columbus, the German cable company, is planning a €240m capital increase with pre-emptive rights to finance acquisitions.

KfW has visited the syndicated market with in bond in an unconventional tenor on a Friday — typically a quiet day for deals — for the second week in a row.

Covered bond new issue premiums fell this week as six issuers raised a collective €5.5bn in three currencies with total demand of almost €8bn.

Deutsche Bank and Morgan Stanley will provide a €4.4bn bridge loan for German building materials supplier HeidelbergCement to buy Italian competitor Italcementi.

Muenchener Hypothekenbank (MuHyp) has priced one of the tightest covered bonds of the year.

A series of German sub-sovereigns have printed deals in euros this week, adding to hopes that the market for the currency is slowly returning to strength after weeks of difficulty.

Covered bond new issue premiums fell on Tuesday as four borrowers launched deals worth over €2.5bn in total, on collective demand of about €5bn. LBBW’s second deal of the month was priced 1bp tighter than its last bond, even though it was two years longer. Bankia was set to issue at less than half the concession paid by peripheral borrowers last week, while Bank of Montreal and Bank of Nova Scotia were set to price in line with recent Canadian predecessors.

KfW was able to double its minimum target with a rare 20 year bond on Friday, using a tactic that SSA bankers away from the deal believe other issuers could follow over the summer.