JP Morgan

A second successive twin tap deal, following Portugal’s lead at the end of last month, brought the European Financial Stability Facility both plaudits and brickbats this week in an otherwise deserted euro primary market, writes Craig McGlashan.

Despite choppy markets leading to a quiet week for corporate issuance, the pipeline remains strong with several new issuers announcing roadshows for deals set to be launched this month.

Valeo Foods, the Irish food producer, has launched a €595m loan that includes a second lien tranche, to refinance debt and fund an add-on acquisition.

The US high-grade market continued its hot streak this week, with more than $23bn of new corporate deals being priced in three days despite heightened volatility.

Autodis, the French car parts distributor, issued a €60m tap late on Monday, pricing the deal at 103.25 to yield 5.518% to maturity.

Goodyear Dunlop Tires Europe has amended its European revolving credit facility and increased it from €400m to €550m.

Equity-linked investors are facing the return of a familiar name with Singapore’s CapitaLand opening books to an S$650m ($488.6m) offering on May 14.

Indonesia’s tumbling equity market has claimed its first victim in Solusi Tunas Pratama (STP), which was forced to drop its Rph3.91tr ($302.24m) share sale despite attracting decent interest from investors.

The European Financial Stability Facility passed a tricky test in euros on Wednesday — but bankers were divided over whether it had opened the market for others.

FedEx has obtained a €2bn loan to buy its European competitor TNT Express, but will also finance the deal with balance sheet cash.

Belfius Bank is now the sixth bank in the capital deal pipeline, and there is growing concern that persistent rates volatility will make it hard for them to avoid running into each other in the primary market.

Weak German GDP figures helped drive a bid for Bunds on Wednesday morning, bringing a degree of stability after two weeks of volatility in eurozone government bonds.