Pre-migration untagged articles

Iceland made a tentative step back to capital markets respectability this week when Landsvirkjun, the state-owned power company, placed its first international bond issue since the country’s banking system collapsed two years ago. The firm wants to build on this start by opportunistically issuing further private placements internationally.

Only the second bond deal ever from software giant Microsoft attracted orders of nearly $15bn and achieved record low coupons across all four tranches of its $4.75bn size this week as US investors continued pouring cash into investment grade debt.

With $31bn already raised and several deals in the pipeline for next week, September could prove another record-breaking month for new emerging market bond issues. The current record is July’s $38bn, said bankers.

Swiss energy company BKW FMB Energie printed a dual-tranche eight year/20 year deal on Tuesday, with the 20 year tranche picking up Sfr300m. Few issuers can get senior unsecured debt at this kind of maturity, and in this kind of size — the last unsecured Sfr300m 20 year was Eurofima, in 2006. Low yields are pushing investors into longer maturities, but can the long end bid continue? Read EuroWeek on Friday to find out.

German carmaker Daimler launches the senior syndication of a Eu6bn five year refinancing on Wednesday, following soon after E.On’s jumbo deal last week. Whispers about deals from other German names, including RWE, Volkswagen and BMW, are also being heard. To find out if the market can support the glut of German deals, read EuroWeek on Friday.

The shimmering window for new senior FIG deals may be closing this week, as appetite dampens for new bonds. While Credit Suisse raised Eu2.2bn of orders for its new five year on Tuesday, appetite is weaker for lower rated credits, say FIG bankers. Turn to EuroWeek on Friday for analysis of how the week’s FIG deals have been absorbed and whether the market is heading into snooze mode for the rest of the year.

The pace in Europe’s high yield market is finally picking up: container shipping firm Hapag Lloyd started the roadshow for a $500m offer on Wednesday, following soon after frozen food business Picard’s Eu300m deal, launched on Monday. The timing is ideal as prices for high yield bonds are back to their pre-crisis levels, the BofA Merrill Lynch high yield index shows. EuroWeek will take a closer look at the new found popularity of the asset class on Friday.

Nordea Bank and Deutsche Hypothekenbank Hannover are in the market this week with new subordinated transactions showing that issuers are willing to push on despite regulatory treatment uncertainty. ABN Amro has also said that it was considering a possible new subordinated issue. To find out whether investors are rushing to those deals and whether more borrowers are going to follow, read EuroWeek on Friday

The Republic of Italy’s new 15 year surpassed expectations as the book raced to in excess of Eu9bn. The result is even more impressive given that gains in peripheral sovereigns on the back of quite successful Irish, Greek and Spanish auctions were reversed this morning as Portugal failed to raise as much money as hoped in its two-part sale despite robust demand. Read EuroWeek on Friday for market views on Italy and the other SSA transactions launched this week

After a two year hiatus, Icelandic borrowers returned to the international bond markets this week with a landmark deal, as Deutsche Bank placed a $100m five year fixed rate note for energy company Landsvirkjun. It is the company’s first bond sold to foreign investors since the 2008 banking crisis and collapse of Iceland’s economy. Is this the beginning of Iceland’s return to the international financial markets?

Joint bookrunners Deutsche Bank and Nomura placed a 9% stake in French electrical technology firm Legrand on Tuesday, raising Eu568m for owners Kohlberg Kravis Roberts & Co and Wendel after investors put in orders for 1.7 times the stock on offer.

M&G, the biggest sterling corporate bond investor, slammed hybrid corporate deals this week, saying they offered “the worst of both worlds: equity type risk with bond type returns”. But few other investors seem to agree. The comments came the same day that RWE raised Eu5bn of orders on the way to printing a Eu1.75bn bond, the biggest ever euro hybrid from a corporate borrower. Read EuroWeek on Friday to find out just how much investor unease there is regarding hybrids.