Ireland

High yield bonds for auto parts manufacturer Adient slipped more than three points on Thursday as the company tweaked its loan covenants and produced disappointing numbers. The firm’s new management is taking aggressive action to turn the group around and says it needs the financial headroom to do so.

Rating: A2/A+/A+

Ireland is looking at the possibility of issuing its first ever benchmark inflation linked bond in 2019, amid an expected surge in the euro public sector linker market this year. Meanwhile, Portugal is waiting for the final approval of its inaugural Panda bond, which will be sold as part of an Rmb6bn three year programme.

Aircraft leasing company Avolon has returned to the offshore syndications market for a $300m loan.

Ireland and Denmark have outlined their funding needs for next year, with both sovereigns looking to raise similar amounts to 2018.

Japan’s Takeda has signed an up to $3.7bn loan, with the pharmaceuticals company using the funds to continue chipping away at its bridge facility for its acquisition of Ireland’s Shire.

Ireland’s Applegreen has signed €300m of loans to finance its acquisition of more than half of motorway service operator Welcome Break, topping off a fund raising round that also saw a share placement.

Ireland’s Dalata Hotel Group has signed a €525m-equivalent loan facility, with new banks joining the acquisitive borrower’s lending group.

Aryzta, the Irish/Swiss bakery, won shareholder approval for its €790m rights issue on Thursday – but only just, as its investors questioned the plan to raise capital.

Ireland this week added its name to the growing list of sovereign green bond issuers, achieving one of its main goals as it diversified its investor base. A debut French agency issuer joined the sovereign on Wednesday, printing its first ever deal — which also came from the first ever Green Euro Medium Term Note programme.

A debut sovereign green bond from Ireland and benchmark from a Spanish agency provided the firmest proof yet that the fiscal stink over Italy’s planned budget deficit has not put investors off other SSAs in the eurozone — even those that until recently were in the same ‘periphery’ bucket as Italy. But bankers are concerned that Italy’s standoff with the European Union has further to run — and that a BTP spread over Bunds of 400bp will be the breaking point.

A pair of debut green bond borrowers made blistering entries to the market on Wednesday. Ireland added its name to the growing list of sovereign green issuers with what on-looking bankers said was a “blowout”, while Société du Grand Paris (SGP) printed at the very top of its size expectations on what was also its debut bond issue of any kind.