Pre-migration untagged articles

The pricing for government guaranteed debt issuance has continued to worsen and order books are shrinking by the day — while issuers are still planning to raise as much as they can before year end. Anglo Irish had to price its inaugural Eu1.5bn September 2010 at 80bp over mid-swaps, 25bp wider than the first Irish deal. Bank of Scotland paid 30bp for its new three year, twice as much as it paid for its taps two weeks ago. What are the odds on GG pricing stabilising? Read EuroWeek on Friday.

The Middle East could soon witness its largest IPO so far as property developer Nakheel is preparing a $10bn stock market listing. Although the region’s IPO market remains shut, a deal is possible in 2009, with a listing on Nasdaq Dubai as well as on the London stock market expected. JP Morgan is mandated on the transaction, say people with knowledge of the market. Do equity bankers think a deal in these circumstances is realistic? Turn to EuroWeek on Friday.

There is no sign of a slowing pace of corporate bond issuance suggesting that borrowers are worried that conditions in 2009 could be even tougher for issuance than they are now. Among others this week are euro deals from Nederlandse Gasunie, Daimler and Linde and a transaction from EDF Energy in sterling. For full coverage of all the deals this week, read EuroWeek this Friday.

The top companies in Russia — and the biggest borrowers in the international markets — are continuing to line up to get funding from the government through Vnesheconombank. Last week, steel maker Evraz received $1.8bn to refinance some of its loans, and this week, Rosneft, one of the most highly leveraged companies in Russia, has secured $774m. Bankers are hopeful that this will go some way towards reducing refinancing risk for next year, but many worry that it will not be enough. Read EuroWeek on Friday for analysis on the syndicated loan market in Russia.

The successful execution of Eu12.25bn of agency supply this week demonstrated the liquidity available in the euro market but spreads for many issuers are still widening. While the prices paid by this week’s issuers look expensive, bankers believe they will represent good value if, as expected, levels widen further in the New Year. With the exception of Société de Financement de l’Economie Française – SFEF – which issued a stunningly successful Eu6bn two year at mid-swaps plus 4bp, everyone else has had to pay vastly more than they have been accustomed to. OKB priced a five year at plus 47bp, ICO a three year at plus 28bp and BNG, highlighting how expensive it is for issuers without a sovereign guarantee, is in the market with a long five year at plus 65bp. Meanwhile the European Community’s inaugural euro benchmark — a Eu2bn three year — was priced at plus 15bp against initial guidance of plus 20bp area.

US dollar swap spreads widened in the first part of the week, but for how long this remains the case is moot as most factors point at the moment towards thinner spreads.

In what could be the last possible week for issuance in Switzerland this year, pharmaceuticals company Sanofi Aventis has taken Sfr275m out of the market and GDF Suez tapped last Friday’s deal for Sfr50m. Will anyone else make it before the market closes? Read EuroWeek on Friday.

Issuance from the Temporary Liquidity Guarantee Programme is gathering pace with Citigroup and Bank of America pricing $14.5bn in two days and Wells Fargo, Regions Bank and General Electric Capital Corp on the way. Meanwhile, Hewlett Packard and Caterpillar paid 100bp concessions as corporates jostled for attention. When will investors be sated?

Total, the French oil and gas group, looks to have secured the finance necessary for a possible C$20bn (Eu12.6bn) offer for smaller Canadian rival, Nexen. But is it going ahead with the deal, and what shape will the loan, if any, take? Read EuroWeek on Friday for the latest details.

The Association of German Pfandbrief Banks (vdp) has put forward new proposals to change the Pfandbrief Act on top of those included in the draft amendment that the ministry of finance approved this autumn. Read EuroWeek on Friday to find out what new measures the vdp is proposing.

The Securities Industry & Financial Markets Association launched the European Covered Bond Dealers Association (ECBDA) on Tuesday, which aims to provide a platform for market makers to advocate their position in the primary and secondary markets.

UK banks renewed their assault on the MTN market with even more self-placed government guaranteed trades this week, as Lloyds TSB and Royal Bank of Scotland sold chunky dollar notes and a barrage of other trades.