Germany

Barclays has hired seasoned investment banker and KfW board member Ingrid Hengster as its new country CEO for Germany and global chairman of investment banking.

Covered bond primary activity slowed to a trickle in euros on Wednesday as DekaBank issued an oversubscribed sub-benchmark sized five year public sector covered bond amid a pick-up in European Central Bank purchases. At the same time, Muenchener Hyp (MuHyp) tapped the Swiss franc market in the wake of a four part Sfr910m ($992m) deal issued on Tuesday by Swiss Pfandbriefbank.

The IPO of Novem Group, the German car parts supplier, is set to be priced at €16.50 a share, according to sources close to the deal.

KfW has had a strong start to 2021, raising over €50bn in the first six months of the year — around two thirds of its target. The agency will face new challenges in the latter half of the year, particularly in the form of the European Union’s colossal Next Generation funding programme. But treasurer Tim Armbruster, and head of capital markets Petra Wehlert are confident they can navigate the new landscape.

KfW

Novem Group, the German car parts supplier, is targeting a valuation of up to €830m in ts IPO on the Frankfurt Stock Exchange, it revealed on Thursday.

DZ Hyp pulled in a solid order book for its €750m no-grow Pfandbrief that was almost positive yielding. Demand for Credit Mutuel CIC’s more negative yielding seven year was much slower to grow and smaller, making execution less certain.

Several Schuldschein issuers have more than tripled their initial targets for deals, with arrangers saying many have gone subject just days after launch. The deal outcomes show a chronic supply and demand imbalance, as the market comes to terms with a persistent drop in deal flow.

KfW braved a volatile rates backdrop to reopen the primary dollar public sector bond market on Wednesday. Dexia Credit Local is looking to follow with a deal in the same currency and tenor on Thursday.

DZ Hyp plans to issue a €750m no-grow Pfandbrief on Wednesday as Muenchener Hypothekenbank (MuHyp) marketed its inaugural sterling benchmark to UK investors amid a sharp fall in global yields.

KfW is coming to the market with a three year dollar benchmark offering, breaking the recent lull in dollar-denominated SSAs, which have endured a few weeks of slack supply with only a handful of deals hitting the market in June.

Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark and bid-yields from the close of busiess on Monday, July 5. The source for secondary trading levels is ICE Data Services.