HSBC

Two Mexican financial institutions are meeting the buy-side ahead of the potential dollar issues as the country’s issuers continue to enjoy optimum issuance conditions thanks to strong bond markets and the reform agenda driving popularity with investors.

A dearth of senior issuance this week left the spotlight on the subordinated debt market, and with the market quiet, LBBW and SEB were able to focus on price and sell aggressively priced tier two trades.

Latin American development bank Corporación Andina de Fomento increased the size of its first euro benchmark for three years as it gets closer to its aim of being considered an SSA, rather than EM, issuer. It will now try to take this strategy to dollars.

Profit taking has taken a toll on the periphery this week, but even as Italy’s government bonds continued to take a beating on Wednesday and the market for subordinated FIG debt softened, Italian insurer Poste Vita took to the market with a tier two capital transaction at a level that showed investors are still receptive to new deals.

Brakes Group, the UK food supplier owned by private equity firm Bain Capital, priced €150m of new bonds and a £257m tap on Wednesday, as it finalised the shift in its debt structure from loans to bonds.

Kutxabank opened books for a €1bn seven year Cédulas Hipotecarias on Monday, Spain’s fourth covered bond of this year. The issuer priced the deal through its curve even as Spanish government bonds underperformed.

After a long string of covered bond syndication success stories this year, demand showed signs of wavering on Tuesday when Landesbank Hessen-Thueringen (Helaba) issued a tightly priced two tranche Pfandbrief.

Chinese leasing company UT Capital Group, a wholly owned subsidiary of Haitong Securities, launched its inaugural international bond - a three year dim sum – on Thursday.

Longfor Properties priced only the second four year CNH bond on Wednesday night, opting for the unusual tenor to spread out its maturity profile. It is also the first Chinese property issuer to come to the CNH market since February.

SEB will sell sub debt on Thursday afternoon, drawing good demand for a tier two deal despite offering aggressive pricing. The Scandinavian bank will be joined by French insurance company Groupama which is exchanging perpetual sub debt for new paper.

Hong Kong property developer Nan Fung International Holdings made a return to the dollar market on Thursday with a ten year bond. The investment grade issue has been met with strong demand, with the orderbook at over $2.5bn when bankers announced final guidance.

Bank of China and HSBC are tipped to be mandated for Chinese company GF Securities’ debut offshore syndicated loan of HK$650m ($84m).