NatWest Markets

The UK Debt Management Office again broke a couple of syndication records as it extended the Gilt curve on Tuesday, but onlooking bankers felt the real story was how the underlying Gilt curve behaved through the deal.

The UK’s Low & Bonar has signed a new €165m five year revolving credit facility, refinancing early a same sized revolver that was due to mature in July next year.

The UK Debt Management Office on Tuesday extended the conventional Gilt curve while breaking two of its syndication records. Bankers off the deal hailed the “great result”, while leads highlighted that the deal was already performing in secondary just a few hours after pricing.

Infrastructure investor Sequoia Economic Infrastructure Fund (SEQI) has used an equity placing to repay the bulk of a drawn down revolving credit facility, maintaining a capital plan the company flagged at the end of last year.

The Bank of England avoided bringing any surprises before the UK Debt Management Office sells its first syndication of the 2018-19 financial year next week as it kept its base rate on hold on Thursday. But some analysts are warning that investors may be overconfident of a hike later this year.

A long-awaited civil settlement with the US Department of Justice this week could prove to be a boon for Royal Bank of Scotland, which has had the risk of heavy fines looming over it for some time.

The UK Debt Management Office has announced the banks that will run the orderbooks for its first syndication of the new funding year.

Engine manufacturer Rolls-Royce returned to the European corporate bond markets on Wednesday after a break of nearly five years. The British company sold a €1.1bn dual tranche deal which extended its maturity profile in euros.

Guarantor: Federal Republic of Germany

KommuneKredit took a novel approach to its sterling issuance on Tuesday, adding a switch operation to print its largest ever new issue in the currency. Bankers believe other issuers may use the tactic. Meanwhile, Bank Nederlandse Gemeenten (BNG) received less interest in a sterling trade of its own.

KfW drew its largest ever benchmark book this week while visiting the seven year tenor, a part of the euro curve that has been red hot for issuers for several weeks and that SSA bankers still has plenty to offer borrowers next week. The European Financial Stability Facility (EFSF) is lining up a deal for next week, although bankers are suggesting it looks at the long end.

The sterling corporate bond market has been less busy year to date than it was in 2017. However, the property sector has continued to be one of the largest contributors of supply and, on Thursday, Grainger added its name to the list of issuers from the industry.