Morgan Stanley

A pair of borrowers printed oversubscribed dollar deals in conservative maturities on Tuesday, finding conditions easier than at the long end of the euro curve.

Two SSA borrowers are out with dollar deals early this week — trades that could set the tone for the rest of the week’s issuance in the currency.

The UK’s move to negative outlook by Standard & Poor’s had little impact on Gilts on Monday boding well for the country’s first syndication of the 2015-16 financial year next week.

It’s a case of a high-profile issuer garnering support from equally eminent investors, as Legend Holdings, the conglomerate that owns Lenovo, launched its Hong Kong IPO that could raise as much as HK$17.5bn ($2.3bn).

The UK Debt Management Office has announced which banks will run its next planned syndication — which includes a rare name on a UK mandate.

Red Star Macalline Group Corp, more popularly known as the Ikea of China, launched on June 12 its IPO in Hong Kong that could raise up to HK$7.22bn ($931.30m). The trade is already covered, after cornerstone investors signed up for a third of the book.

Borrowers in the sovereign, supranational and agency sector could find their funding plans rocked by whipsawing government bond yields for months to come.

Labco, the French medical diagnostics company, plans to refinance all of its bonds with a new €800m issue. It agreed in May to be bought by private equity firm Cinven after pulling an IPO at the last minute.

Two equity accelerated bookbuilds were conducted in Europe on Tuesday evening. One was a private equity selldown of Thule – but more unusually, Capgemini raised €500m for an acquisition, at a 2.9% discount.

As the half year point of 2015 approaches, year to date CEEMEA volumes are at their lowest in six years. No bookrunner has escaped the plunge in volumes although a couple of institutions have managed to beat the odds and take a larger share of a shrinking CEEMEA market.

Dollar borrowers were forced to pay up to access the market amid continuing market volatility as they raced to take advantage of attractive funding costs ahead of the looming Fed meeting.

National Bank of Abu Dhabi on Wednesday printed its $750m tier one perpetual with a coupon of 5.25%, the lowest ever for this kind of deal from the CEEMEA region. The feat was even more impressive for being printed on a day when Credit Suisse had its 10 year bond pulled because of market volatility.