Pre-migration untagged articles

Crédit Agricole is in the market this morning with a seven year benchmark, its debut covered bond and only the second jumbo since BNP Paribas reopened the market on 8 January. Leads Barclays Capital, Calyon, and UniCredit have set guidance at 125bp to 135bp over mid-swaps. Read EuroWeek this Friday to find out how Crédit Agricole’s inaugural transaction was received by investors.

In a week characterised by falling stock market indices, bookrunners Merrill Lynch and RBS Hoare Govett on Wednesday launched a £402m (10%) bookbuild for oil explorer Tullow. The deal marks the third of its kind by a UK company this year after the £479m placement for Scottish & Southern and a £24.7m bookbuild for HMV last week. Tullow’s shares have gained 35% since early December, but dropped 5% on Tuesday on rumours of the placement. Turn to EuroWeek on Friday for market reactions to the deal.

The Turkish lira bond market is back in business at last. Deutsche Bank found enough traction to issue TL75m two year in a self led deal this morning, the first Eurobond issue in the currency since September. It structured the deal in zero coupon format as investors price in rate cuts and seek to minimise FX exposure but maximise yield.

Transactions from IKB and Kommunalkredit Austria are in focus this week in the government guaranteed (GG) market. IKB managed to raise Eu2bn at 30bp over mid-swaps, wider than most recent German issues. Kommunalkredit Austria meanwhile has announced guidance on a two year issue, 3bp tighter than where Erste Bank priced its deal last week. The second issue from Denmark is also set to be priced this week, a September 2010 deal from Nykredit at 40bp over mid-swaps.

Reed Elsevier, the publisher, and bookmaker William Hill are following UK brewer, Marston’s, in seeking forward start facilities — refinancing loans that begin well in advance of loan maturity dates, extending those further and leading the borrower to pay higher margins immediately. Read EuroWeek on Friday for the latest on these deals.

Long dated taps of public sector bonds and shorter-dated corporate bonds have attracted investors into the Swiss franc market this week. Österreichische Kontrollbank tapped its 2030 bond and the European Investment Bank its 2036 bond at 29bp over and 20bp over mid-swaps, respectively as Swiss rates dropped lower still at the long end. A rare triple-B credit, Unique Zurich Airport, braved the market yesterday (Tuesday) and raised five year Swiss francs at 273bp over mid-swaps. Other corporates are still offering attractive spreads: Vattenfall priced 2011 paper at 160bp over on Friday; Nestlé added more 2013 paper and France Télécom is coming back to tap its 2013 this (Wednesday) afternoon at 170bp over mid-swaps, 5bp tighter than the launch last Tuesday (January 13). Read EuroWeek on Friday for reaction to all these, and many more,deals.

The UK treasury gave in to RBS’ pleas and agreed to convert £5bn of preference shares, resulting in £600m of extra capital for RBS — and a promise to lend £6bn more to UK customers. The pref share conversion however takes RBS a step closer to nationalization, with the government stake going to 70%. Lloyds Banking Group rejected a similar offer, but will its resistance last? Turn to EuroWeek on Friday for details.

The UK government’s latest attempt to resuscitate bank lending won plaudits from some in the industry today, though with many details still to be worked out the likely affect of the scheme on securitisations, syndicated loans, commercial paper and bond issuance remain unclear.

Veteran banker Paul Hearn, global head of primary markets and distribution at BNP Paribas, is leaving the banking industry after 25 years, the latest in a line of senior faces to leave the industry.

--Ty Anderson, global head of high-yield strategies at DB Advisers, on the new bond issuances in the high-yield market.

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