Pre-migration untagged articles

Société Générale SCF on Thursday increased a Eu1.25bn 10 year obligations foncières issue launched in March by Eu1bn after encountering strong real money demand for the tap.

UK brokerage firm Panmure Gordon reported this week that revenues for the year to date already exceed those it made in all of 2008 — highlighting the sudden revival in equity capital markets.

UBS’s disappointing first quarter results have prompted speculation it might have to raise further capital this year, and its announcement of a further 8,700 job cuts has raised doubts it will remain a big player in investment banking.

The corporate market has reopened with a bang this week, with Eu2.75bn of issuance already this morning. Veolia Environment, which met investors on a roadshow at the beginning of March, will today issue Eu2bn in a dual tranche deal, with Eu1.25bn of five year paper pricing at mid-swaps plus 250bp and Eu750m of 10 year at plus 330bp. Tyre firm Michelin is also out in the market, and is likely to print Eu750m of five year paper, having tightened its pricing guidance so that the deal yields 8.75%. To find out how this and all the deals in the market this week performed, read EuroWeek this Friday.

Aim-listed explorer Afren is testing the waters for share placements in an accelerated bookbuild with the target of raising $125m. The deal, if successful, will prove investor interest in exploration and mining businesses from the African continent, and follows a £75m placement by Gem Diamonds and a $190m bookbuild and rights issue for Aquarius Platinum. Will investors support further share placements from the sector? Turn to EuroWeek on Friday.

Banque Fédérative du Crédit Mutuel is planning to price an 18 month FRN issue this week via BNP Paribas and HSBC. With guidance at 135bp to 140bp over Euribor, the order book is over Eu1bn with over 50 accounts participating, further confirming how popular French bank names are with investors, including domestic ones, right now. To get the full story, read EuroWeek on Friday.

Cajasol, which is planning to price an inaugural three year, is the only issuer to have ventured into the government guaranteed market this week. Bancaja, Barclays Capital, Caja Madrid, Deutsche Bank and DZ Bank are taking IOIs at the whisper of 95bp to 100bp over mid-swaps and pricing could be as early as today. To find out how the deal went and whether other issuers join the fray, read EuroWeek on Friday.

Gazprom is rumoured to be testing investor appetite with price talk of 9.25%-9.5% for its Reg S/144A 10 year non-put three year dollar eurobond. Observers, however, are divided as to whether the seemingly tight price talk offers value. Some think the value of the option, in light of the continuing rally in emerging market debt, justifies the levels, while others regard it as too tight. Read EuroWeek on Friday for full details of the keenly watched deal.

Songbird Estates has bought back £119.8m notional out of £504m junior bonds from Canary Wharf Finance II after it increased the invitation amount to cover all validly tendered notes. It paid a total of £35.5m for the bonds. EuroWeek on Friday analyses the outcome of recent CMBS buybacks and reports on whether investors should expect more in future.

The International Finance Corp’s annual visit to the dollar market with its traditional five year global was a spectacular event with the borrower issuing $3bn, its largest bond to date and, based on a book of over $4bn, the pricing was cut to 78bp over mid-swaps from guidance of plus 80bp area. Led by BNP Paribas, HSBC and JP Morgan, 57% of the deal was sold to central banks, much larger than typically seen in dollar bonds this year. Inter-American Development Bank chose to go head to head with IFC, opening books for a five year global on Monday with guidance of plus 85bp area and the transaction is yet to price. Lead managers Citi, Morgan Stanley and RBS say books are over $2bn and that pricing will take place this afternoon.

The euro sector has been slower than dollars to get off the mark with many participants still on holiday. The only deal currently on offer is a Eu750m minimum 10 year for Province of Ontario led by BNP Paribas, Credit Suisse, Deutsche Bank and JPMorgan. With guidance of mid-swaps plus 145bp, the deal is expected to go well since it should offer a coupon very close to 5%. Read EuroWeek on Friday to get the borrowers’ and bankers’ views on the deals and the market