NatWest Markets
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A dearth of senior issuance this week left the spotlight on the subordinated debt market, and with the market quiet, LBBW and SEB were able to focus on price and sell aggressively priced tier two trades.
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SEB will sell sub debt on Thursday afternoon, drawing good demand for a tier two deal despite offering aggressive pricing. The Scandinavian bank will be joined by French insurance company Groupama which is exchanging perpetual sub debt for new paper.
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Several companies delayed plans to issue corporate bonds in Europe today, as markets looked ugly at the open. There has been a flurry of MTN and niche currency issuance this week, but the only mainstream corporate bond issue today was from Prologis, the US warehouse Reit.
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Carlsberg Breweries returned to the euro bond market after an 18 month gap today with a successful €1bn 10 year bond, though it had to contend with a market that has lost a little of its rude bullishness in the past week.
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Macquarie Leasing has released the capital structure of its latest SMART auto ABS transaction after finishing the Australian leg of its roadshow, as it looks to sell the shelf’s first euro-denominated paper since 2008. -
After Volkswagen tapped the short end of the sterling market for a £300m 4.5 year early last week, Daimler followed suit on Friday May 9. Then on Tuesday this week FCE Bank, the UK-based finance arm of Ford, visited the same market.
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Pearson, the UK educational and financial publishing group, returned to the euro bond market on Monday after a long absence, and priced a bond right in line with the secondary spreads of its closest media peers. It was followed on Wednesday by a €350m three year deal from competitor Reed Elsevier (see globalcapital.com).
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Reed Elsevier, the Anglo-Dutch business and technical publishing company, followed two of its closest peers into the bond market today, with a €350m floating rate issue.
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Danske Bank has kicked off the week with a €500m no-grow tier two sale, bringing in a big book that bodes well for further supply from Bankia and others this week.
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Philip Morris International revelled again on Tuesday in European bond investors’ love of tobacco. As usual, any conscientious objectors were not missed, as even after €5bn of tobacco bond issuance in February and March, investors piled into Philip Morris’s return.
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Media companies are rare birds in the European corporate bond market, so it was a surprise on Wednesday when, with Pearson in the midst of a roadshow, it was leapfrogged by Wolters Kluwer, which brought out a €400m no-grow deal.
