Pre-migration untagged articles

Monoline insurer CIFG has signed a memorandum of understanding to commute $12bn notional of credit default swaps (CDS) on CDOs backed by asset backed securities and commercial real estate. The memorandum covers 75% of CIFG’s par exposure to these sectors.

The European commercial paper market saw a slight increase in Swiss franc issuance this week, as absent buyers returned to the market.

Gross out

Turkey is finally venturing back into the new issue market after mandating Deutsche Bank and UBS as bookrunners for a new dollar benchmark. Price talk on the bonds, which mature in March 2019, has been set at 7.05% area. Meanwhile, the Republic of Ghana (B+/B+) surprised investors on Monday, announcing plans to issue a new seven year put two deal through JP Morgan and Renaissance Capital. The deal is being marketed with price talk of 500bp over six month Libor. Read EuroWeek on Friday to find out how investors are responding to this rare credit.

The senior syndication phase of the Eu970m loan facility for German building materials firm, Xella, was closed on Friday with general syndication just around the corner. Read Euroweek this week for more details

CIFG has become the latest of the distressed monoline insurers to agree with counterparties to commute its derivatives exposures in exchange for cash and equity, but will have to reinsure its municipal bond portfolio. CIFG’s move follows FGIC’s reinsurance agreement with MBIA last week, which left FGIC with increased capital but a poorer portfolio. Read EuroWeek this week to find out what the future holds for CIFG.

Dexia Kommunalbank pulled a planned public sector jumbo Pfandbrief on Monday afternoon. However, oversubscription of a new CIBC issue, launched yesterday morning, showed that the covered bond market remains open despite investors’ apparent lack of enthusiasm for the German deal. Encouraged by this, Sparebank 1 also entered the market yesterday afternoon. Read EuroWeek on Friday for more on this week’s market activity.

The dollar market is still the best place to be for sovereign, supranational and agency borrowers. This week KfW is printing a $4bn three year global bond at mid-swaps less 28bp and BNG a $1.25bn three year at less 17bp and both deals were oversubscribed, reflecting a seemingly bottomless pit of money still being directed at this sector. IADB is testing the 10 year market with a $1bn global and Kommunalbanken will try its luck today with a three year dollar. In stark contrast, the euro market is proving a much tougher proposition — NRW.Bank wanted to raise Eu1.5bn and managed only Eu1bn and Instituto de Credito Oficial struggled with its Eu1bn five year. Read EuroWeek on Friday for coverage of all the new issues and get a glimpse of what’s in store for next week.

A host of new mandates are flooding out of the emerging markets with Russian borrowers prominent. Moscow Regional Power Grid Company (MOESK) plans to issue $1b of Eurobonds around the end of October, VTB is said to be preparing an autumn deal, while Alfa Bank is also testing investor interest in a new issue. Finally, Novolipetsk Steel is planning a debut Eurobond of up to $2bn as part of the takeout of its $2bn bridge loan taken out to fund its acquisition of steel pipe market John Maneely. Read EuroWeek on Friday to learn more.

Deutsche Telekom will follow Tesco to the new issue market after this morning announcing a six year euro transaction. DZ Bank, LBBW and UniCredit are bookrunners on the minimum Eu500m deal, with price talk at 138bp over mid-swaps. Tesco’s generously priced Eu3bn dual tranche issue, which attracted more than Eu7bn of orders, has held around re-offer. Read EuroWeek on Friday to learn more about these transactions and the outlook for September.

Four Seasons Healthcare, the UK care home operator, has defaulted on its acquisition debt, but has agreed a standstill with creditors. EuroWeek reveals what the news means for bondholders in Titan Europe 2006-4 FS, which securitised part of the debt.

Europe’s privatisation IPOs moved forward this week with developments for Deutsche Bahn, Enea and La Poste. China Investment Corp (CIC) signalled its interest in the planned Eu8bn Deutsche Bahn offer, the Polish government said it intended to divest its complete holding in power company Enea next year, after the company’s privatisation in October and in France the privatisation process of La Poste kicked off with the aim of taking the company to the stock market in 2010. Read EuroWeek on Friday for a full update on Europe’s privatisations.