Germany

Europe’s turbulent IPO market has taken its toll on the listing of Synlab, the German laboratory technology company, with the sellers deciding to shrink the size of the transaction after investors refused to budge from the bottom of the price range.

Jumbo, a privately owned supermarket chain with stores in Belgium and the Netherlands, has closed a debut Schuldschein at €200m, according to market sources. New deals are proving popular, as low levels of deal flow cannot slake investors' thirst for assets.

The European Banking Authority has warned issuers against rushing into the sustainability-linked bond market, as it works on deciding whether the structures conflict with eligibility criteria for capital and other loss-absorbing instruments. Despite the warning, market participants are pushing hard to make sure banks are able to issue SLBs in any format, writes Tyler Davies.

Aareal Bank and Deutsche Pfandbriefbank (PBB) issued highly successful Sonia linked Pfandbriefe this week, doubling the supply seen so far this year.

Aareal Bank managed to attract healthy demand for its first Sonia covered bond, enabling it to price the deal in line with fair value, in a large size, with negligible price sensitivity and a high quality order book.

DIC Asset, the German commercial real estate company, has sold €250m worth of Schuldscheine. The debt’s margin is tied to the sustainability of the borrower’s property portfolio.

Aareal Bank mandated leads on Wednesday for a four year sterling Pfandbrief. The announcement came a day after Deutsche Pfandbriefbank (PBB) issued the tightest ever Sonia trade.

With the amended legal framework for German Pfrandbriefe set to become law within weeks, observers are upbeat, noting that although extended lockdowns are unhelpful for the commercial real estate (CRE) securing many programmes, the bonds still offer considerable investor protection.

Grünenthal, the German pharmaceutical firm which specialises in painkillers, is looking to refinance its debt with an inaugural high yield bond, just two months after buyers reportedly shunned the company over ESG concerns around opioid manufacturing.

Deutsche Pfandbriefbank (PBB) issued the tightest ever Sonia-linked covered bond on Tuesday at close to fair value, with little spread sensitivity and a high quality order book. The strong result sent a positive signal to other issuers with natural sterling funding needs.

Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark and bid-yields from the close of business on Monday, April 19. The source for secondary trading levels is ICE Data Services.

Deutsche Pfandbriefbank (PBB) has mandated leads for the second Sonia linked covered bond of the year and Bausparkasse Schwabisch Hall (BSH) is expected with a euro 12-year deal.