Pre-migration untagged articles

Cades has issued a Eu3bn five year via Barclays, BNP Paribas, HSBC and RBS in a market devoid of other SSA supply and with nothing apparent in the pipeline. Some have criticised the issuer for printing such a large deal based on a book size of only Eu3.2bn but it achieved big size at a tight mid-swaps plus 7bp and locked in a very low coupon of 2.625%.

Those who doubted that contingent capital would have a future after the Lloyds Banking Group exchange completed last week have already been proved wrong. Yorkshire Building Society will issue £100m worth of CoCa notes to strengthen its capital base when it merges with Chelsea Building Society in April. To find out more about the ins and outs of the deal, read EuroWeek on Friday.

Dubai World has begun talks with creditors, as the market comes to terms with its restructuring. Turn to EuroWeek on Friday for more on what options are on the table and how the market is responding.

The likelihood of an underwritten LBO loan in Europe grew this week after Informa pulled out of a bid for Springer Science and Business Media, clearing the path for EQT. The Swedish private equity house is thought to be lining up a Eu1bn loan — with Barclays Capital, Goldman Sachs and UniCredit among the interested lenders — to back a takeover of the German publisher, which is valued at Eu2.6bn.

CFAO, Hochtief Concessions, Yoox and Movetis are pricing IPOs this week, leaving bankers are on tenterhooks to see if investors will stand firm against the volatility caused by Dubai World’s debt standstill. With deals queued up for the first quarter, a lot rides on the outcome. Read more in EuroWeek on Friday.

The syndicated loan market is set to end a year to forget with a bang rather than a whimper as two investment grade deals are due to close. A Eu1.3bn revolver for Banque PSA Finance will be finalised early next week and is already looking to be subscribed, while a Eu500m refinancing for Coca-Cola Hellnic Bottling Co is in documentation and is expected to sign late next week.

Nomura Holdings is expected to issue between Eu500m and Eu750m of five year senior unsecured bonds in its first visit to the euro market since 2007 today. Elsewhere, National Australia Bank has gone out with guidance of 145bp over gilts for a 12 year sterling benchmark deal, following on from its successful visit to the euro market two weeks ago when it priced Eu2bn of five year paper at 83bp over mid-swaps. Read more on these deals in Friday’s EuroWeek.

The advantageous basis swap that had been helping issuers into the European commercial paper market recently disappeared this week triggering a further slow down in activity.

Ahorro Corporación Financiera executed the largest 10 year Spanish covered bond since July 2007 on Tuesday, a Eu500m AyT Cédulas Cajas issue whose size matched investor and savings bank interest in the transaction.

Euro CMS option prices are out of kilter and offer an arbitrage opportunity because of inconsistencies between spread and single-rate cap pricing models, said a Nomura analyst who spotted a similar opportunity several years ago.