HSBC

Energie Baden-Württemberg launched a very successful hybrid capital issue on Tuesday, raising €1bn to bolster the subordinated layer of its capital structure at blisteringly tight pricing, thanks to perfect timing after a drought of issuance.

Insurance and pension fund demand is likely to drive further 20 year benchmarks after this week’s triumphant €5bn syndication from Belgium, SSA bankers argued this week. New appetite for the rare maturity particularly reflects the Solvency II directive, under which insurers’ holdings will be assessed using mark-to-market values up to 20 years, writes Craig McGlashan.

Bank of Ireland returned to the covered bond market on Tuesday to issue its fifth deal since November 2012, when it returned after the Irish sovereign debt crisis. The transaction was well oversubscribed with plenty of orders, but less spectacularly so than on previous issues.

John Deere Bank, the financing arm of the US agricultural machinery group, launched a rare five year floating rate note on Wednesday that found strong demand, as European investors warmed to a structure that will protect them against interest rate rises.

Deutsche Bahn, the German state railway company, launched its first euro bond of the year on Monday, into an empty but slightly weakening market — often considered ideal conditions for this ultra-safe credit. It was rewarded with strong demand, especially from Asia.

Pernod Ricard, the French distiller, launched a benchmark long six year bond on Thursday that found strong demand, despite a weak market, with European stocks closing down 1.5%.

The tier two market sprung back to life this week, with veteran credit BNP Paribas pulling in as big an order book as the market has come to expect. But at the other end of the spectrum, German real estate lender Aareal Bank pulled in a smaller but equally impressive amount of orders for its debut tier two benchmark, with international investors piling in on top of the issuer’s domestic fan base.

Agence France Locale (AFL), a new funding agency for French regions, is preparing a debut issue that could appear in the second half of the year. Bankers reckon the agency will likely find widespread interest from investors, particularly in the private placement market.

A group of 15 banks are tipped to win the mandate for the new loan for agricultural products supplier Olam International, which is expected to be launched at a size of $1.2bn.

SIHL taps lenders for HK$4bn — Lenovo seeks $1bn acquisition loan

John Deere Bank, the financing arm of the agricultural machinery group, launched a rare five year floating rate note yesterday that found strong demand, as European investors warmed to a structure that will protect them against interest rate rises.

Bank of Communications is in the market with a two year dim sum deal which is due to price on Thursday night and books are already very well covered, according to a banker on the trade.