NatWest Markets

A bevvy of public sector borrowers are lining up euro deals for Tuesday and beyond — but some are opting to hold back price thoughts amid a cluttered and volatile backdrop.

Santander UK was set to print a solid sterling senior holdco debut on Friday, but different views of the appropriate spread between opco and holdco debt meant rival bankers couldn't agree on fair value for the deal.

Lloyds issued the first sterling covered bond of the year and was quickly followed by two overseas issuers who priced deals at successively wider levels.

Public sector borrowers enjoyed a storming sterling market this week and, with many of the supporting factors still in place, SSA bankers are confident that more deals will follow.

A healthy euro benchmark pipeline is building for next week, with one supranational looking to print and a pair of sovereigns believed to be considering deals, after a week that didn’t finish as strongly as it started for core issuers.

World Bank rounded off a strong week for sterling issuance from public sector borrowers, opting to print a deal further out the curve than the week’s previous trades.

Investors on Thursday pounced on Ireland's recovery story to lap up €3bn worth of 10 year bonds from the Celtic Tiger.

The sterling market enjoyed a second record breaking day in a row on Wednesday as FMS Wertmanagement printed its largest ever deal in the currency — and sterling investors were impatient for an upcoming World Bank deal.

The European Stability Mechanism is seeking ideas for a bond issue next week, as the euro market burst back into life following a holiday across much of Europe on Wednesday.

Commodities trader Trafigura will next week launch its refinancing of a $5.3bn facility, with Glencore expected to follow shortly thereafter. Bankers believe these issuers will retain support from key lenders, despite their mixed successes in 2015.

The European Investment Bank blew the doors off the sterling market with a record breaking deal on Tuesday, and two other issuers quickly followed.

Electra Partners and Patron Capital have agreed to buy Grainger Retirement Solutions, the home reversion equity release business of Grainger plc, for £325m.