Lloyds Bank

Motability Operations Group, the UK company that operates the UK government's scheme to provide cars for the disabled, printed a £1.438bn-equivalent euro and sterling three tranche bond on Wednesday, in a busy day that also brought a €1bn two part issue from OMV, the Austrian oil and gas company.

Vue International’s revamped refinancing let the credits roll in, delivering a far better performance than the original showing last year, thanks to part-owner Omers injecting £165m of subordinated debt, strong market conditions, and a successful six months for the cinema chain.

Toronto Dominion Bank has become only the second borrower from outside of the UK to sell a Sonia-linked covered bond, having quickly met enough orders on Monday to launch a £1bn offering in the sterling market.

UK banks jumped back into the bond market this week, enjoying good demand for their funding and capital products. But with the country’s financial institutions having loaded up heavily on debt already, and with political instability causing near constant volatility within the sector, some market participants wonder whether investors have had all the UK FIG bonds they can stand. Tyler Davies and Bill Thornhill report.

The UK’s NCC Group has renewed its £100m revolving credit facility to stretch out the maturity, as loans bankers say the pipeline is looking bleak at the halfway point of the year.

Euro and dollar benchmarks issued by Nordea, Lloyds, Korea Housing Finance Corporation (KHFC) and SMBC on Tuesday was a fillip for covered bond market participants suffering through volatile credit market conditions that have caused price expectations to fall.

Cinema company Vue International has relaunched the refinancing of its capital structure that was mooted last year. It wants to clear out sterling and euros high yield bonds and replace them with euro loans.

After 10 days of very scanty issuance and some weak markets, more stable conditions on Tuesday brought a salvo of five deals to the euro corporate bond market, offering a wide range of single-A and triple-B credits.

The City of London Corporation, via its endowment fund ‘The City’s Cash’, is set to enter the US private placement (PP) market for the first time. The funds will be partly used to finance the consolidation of the Billingsgate, Smithfield and Spitalfields wholesale food markets at a new site in Dagenham, Essex.

Thursday’s corporate bond new issue action in Europe confirmed the picture presented on Wednesday: that investors were determined not to let macroeconomic issues bother them, and were piling into new issues. The day was less blemished than the previous one had been by volatility, enabling issuers to get some very tight spreads.

Barclays and Lloyds Banking Group kept the sterling covered bond market busy this week with Sonia-linked trades that drew strong demand and were priced with no new issue premium.

Lloyds Bank found good demand for its third visit to the sterling covered bond market in the last eight months and the largest Sonia linked bond of that type issued this year. Attractive relative value and a prospective supply slowdown propelled demand, enabling the deal to be priced flat to fair value.