NatWest Markets

Charterhouse - Grupo Memora

Royal Bank of Scotland and broker dealer Close Brothers chose to hit the senior market before Wednesday afternoon’s Federal Open Markets Committee meeting, selling euro and sterling debt respectively. Both deals benefited from juicy spreads over swaps, according to syndicate bankers away from the trade.

Coventry Building Society, which on Monday began a roadshow for a sterling denominated additional tier one, is set to become the first issuer of AT1 bonds that will convert to an equity-like instrument that have not yet been issued.

Issuers benefited from ideal market conditions for senior unsecured trades this week, with spreads rocketing inwards following the European Central Bank’s decision to cut rates last week. While the sharpest part of the rally may be over, issuers are expected to enjoy an easy ride for the foreseeable future as syndicate bankers expect spreads to grind even tighter.

General Electric is the world’s biggest bond issuer, and usually one of the US issuers that comes most frequently to European markets — partly to diversify its funding, and partly because it has European-based businesses to finance.

RBS’s arch-integrator is close to finalising his plans for the bank’s new corporate and institutional bank, writes David Rothnie.

Brussels Airport, which issued a €500m seven year bond last June, will issue a new sub-benchmark deal this week, prompted by reverse enquiry.

With senior FIG spreads moving tighter following the announcement of rate cuts by the European Central Bank last week, Intesa Sanpaolo was able to benefit from the ensuing hunt for yield on Tuesday to draw a hefty order book. In contrast, Finnish bank Pohjola struggled to tighten pricing on a five year senior print, though the UK’s Bupa benefited from its rarity to breeze through a sterling print.

British Telecommunications broke its long abstinence from the European bond markets on Tuesday, with a €1bn deal that was as enthusiastically received as bankers had long predicted the issuer’s return would be.

The Asian syndicated loans industry is bracing itself for the return of Indian power companies, with Khopoli Investments, National Thermal Power Corp (NTPC) and Power Finance Corp looking to tap the market for a combined $705m.

ICICI Bank made the most of the voracious post-election appetite for Indian credits to price a $250m tap of its 4.8% 2019s inside where the existing bond was trading on May 29. It was the first time that an Asian issuer had achieved such a feat, according to bankers.

Guernsey could follow Jersey into the capital markets, with the bailiwick’s treasury minister considering a debut deal following Jersey’s inaugural debt sale this week. If Jersey’s more than twice oversubscribed debut is anything to by, Guernsey can expect a warm welcome.