Lloyds Bank

UK property company Hammerson has signed a new £1.5bn three year revolving credit facility, bringing in a dozen banks for a financing aimed at slashing the funding costs of its acquisition target, Intu.

Two new SRI corporate bonds were priced on Monday, but with very different results. Iberdrola’s green hybrid bond failed to tighten from initial price thoughts, while Danone’s debut social bond had to pay just 2bp of premium.

It was no surprise to many market participants that Friday saw no new issuance in the corporate bond market after the busiest week of 2018. The conundrum to be solved now though is how the jumbo issuance will affect conditions in potentially the final full week before Easter.

The preference share market is in disarray after Aviva asserted that it could cancel its instruments at par, a decision that has been derided by fixed income investors of all stripes and is now being examined by UK market regulators. Tyler Davies reports.

Lloyds issued its first euro covered bond in almost two years on Thursday, helping to assuage Brexit concerns by pricing the €1bn seven year with a positive spread to mid-swaps.

Three sterling deals this week matched the busiest week of 2018 for the currency as two UK corporate issuers returned to the market after notable absences and a US issuer opted for sterling for its first non-dollar deal.

Thursday saw two UK corporate issuers return to the sterling market after notable absences. Southern Gas Networks had not issued for more than two years, while the recently renamed Optivo Finance had been away for five years.

Hyundai Capital America raised $800m from a dual-tranche issuance on Wednesday, the same day that chemical giant China National Chemical Corp walked away with more than $6bn from the market.

On Wednesday, German business software company SAP printed a €1.5bn triple tranche deal at tight spreads following more than a year and a half without issuing, while American IT services firm DXC sold its first non-dollar deal.

The University of Portsmouth entered capital markets for the first time on Monday, issuing some £100m worth of privately placed bonds. The south coast institution follows many other UK universities in choosing to issue private placement notes, as well as public bonds, to lock in long term funding at low rates.

Lloyds Banking Group and Royal Bank of Scotland issued bonds this week, getting a mixed reception in the primary and secondary markets, while the Bank of England’s Term Funding Scheme (TFS) closed.

Lloyds Banking Group was marketing a tier two deal in euros on Wednesday, after Svenska Handelsbanken brought the tightest tier two bond in its maturity choice on Friday.