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Kuwait's Burgan Bank priced its debut additional tier one (AT1) bond in what bankers on the deal said were challenging conditions on Tuesday. While the point of non-viability (PONV) trigger premium is up for debate, bankers say that Middle Eastern banks will only have to pay up marginally to issue Basel III debt.

Tuesday had been a slippery day in the European corporate bond market, as a fall in equities caused two new issues to find underwhelming demand – a knock-on effect that has not happened for a long time. But by Thursday that was all forgotten. Four deals were launched, three of them triple-B rated and three of them 10 years, and all went well.

Delachaux has finalised pricing on all three tranches of its €690m-equivalent seven year term loan ‘B', effectively tightening it, while revising its incurrence conditions on leverage.

Tuesday had been a slippery day in the European corporate bond market, as a fall in equities caused two new issues to find underwhelming demand — a knock-on effect that has not happened for a long time. But by Thursday that was all forgotten. Four deals were launched, three of them triple-B rated and three of them 10 years, and all went well.

The National Bank of Oman has mandated banks for its debut international bond and is meeting investors this week.

Westpac New Zealand made its sterling debut this week, highlighting the strength of demand for sterling financial paper, particularly floating rate notes.

Vallourec’s bond issue may have gone well on Tuesday, but for the other corporate issuers in euros and sterling it was a much rougher ride. Accor launched a €150m tap and RCI Banque a £250m sterling three year, but neither managed to tighten pricing from their initial thoughts.

The International Finance Corporation printed debut tranches from its onshore rupee bond programme on Tuesday. The bond — dubbed a Maharaja — marks the first time an international financial institution has issued in domestic rupees for over a decade. Also in Indian rupee, Inter-American Development Bank placed an increase of its three year offshore line on Wednesday.

Burgan Bank

Kazakhstan is meeting investors for what looks set to be its long awaited return to the market. The sovereign has not issued a bond since 2000 and its comeback has been eagerly anticipated.

Philippine retailer SSI Group has started investor meetings for an IPO worth around Ps10.8bn ($243m), which will see the company offering a combination of primary and secondary shares.

A Basel III landmark was notched up this week as Bank of Communications (BoCom) became the first Chinese bank to issue without the use of an overseas entity. But despite the pioneering nature of the tier two deal, the market’s focus remains firmly on upcoming additional tier one (AT1) issuance, with some investors staying clear of BoCom in preparation for the higher yielding deals, writes Rev Hui.