Santander

Santander and UniCredit reopened the door to the additional tier one market this week only to find what lay behind it was a very different dynamic from the one borrowers experienced before summer. An expected burst of supply is on the way and historically low coupons are causing investors to shy away from the AT1 from major European banks.

Santander is out with the first additional tier one (AT1) trade from a major European bank since June, bringing just a €3.75bn book ahead of pricing for a perpetual non-call seven year deal — suggesting that the demand dynamics of the asset class may have changed since the first half of the year.

British cigarette maker Imperial Tobacco has secured financing for its $7.1bn acquisition of brands from Reynolds American, and refinanced its existing revolving credit facilities.

The additional tier one deal pipeline may have shuddered back into life earlier than expected this week as two banks announced roadshows following a rally inspired by inspired by dovish comments from European Central Bank president Mario Draghi. But volatility has since set back into the market and looks ready to test the asset class’s hardiness, writes Graham Bippart.

Concerns that there would be a dearth of additional tier one (AT1) deals ahead of the European Central Bank’s Asset Quality Review appear to be receding as Santander joins the pipeline, mandating leads for its second euro denominated AT1.

Brazilian meatpacker Minerva took advantage of an empty Latin America new issue market to fetch a well oversubscribed tap of its outstanding 2023s with a narrow premium on Thursday, increasing the planned size of the tap in the process.

French supermarket group Casino Guichard-Perrachon made the most of a quiet week in the investment grade bond market when it priced a €900m 12 year bond on Wednesday at 125bp over mid-swaps, needing almost no new issue premium to bring in €2.6bn of orders.

French supermarket group Casino Guichard-Perrachon made the most of a quiet week in the investment grade bond market when it priced a €900m 12 year bond on Wednesday at 125bp over mid-swaps, needing almost no new issue premium to bring in €2.6bn of orders.

UK firm Imperial Tobacco has signed a $13.19bn-equivalent loan to back its acquisition of brands including Winston and Maverick from Reynolds American.

Chilean telecoms company Entel will meet investors from Monday to Wednesday ahead of a planned 144A/Reg S bond of up to $800m.

Europe’s corporate bond market was knocked sideways on Thursday by a gust of fear about peripheral Europe, after problems deepened at Portugal's Banco Espírito Santo. The market has not shut down, but ACS, the Spanish construction company, pulled a deal and no issuer managed to price tighter than its initial thoughts.

Ferrovial, the Spanish company that calls itself the world’s leading private investor in transport infrastructure, issued a €300m 10 year bond on Tuesday, in a tough market.