Santander

Grupo Antolin-Irausa, the Spanish car parts maker, has picked a quieter week for its debut high yield issue after last week’s deal flurry. The family-owned company wants to sell €400m of senior secured bonds alongside a new credit facility.

Any doubt over the enthusiasm for senior euro denominated bank debt on Monday, when a short selloff was followed by three successful pricings, was entirely dispelled by Tuesday morning, with three more senior deals hitting the market and meeting big demand off the bat.

British American Tobacco raised €1bn in the bond market on Monday, completing a hat-trick of deals by the three leading European cigarette makers. The transaction’s heavy oversubscription suggested there had been no impact either from the clustering of tobacco issuance, or from Russia’s alarming intervention in Ukraine.

Leading investors are starting to chafe at the pricing of deeply subordinated bank capital, even as a vast €45bn wave of orders carried this week’s trio of euro and sterling new issues from Banco Santander, Danske Bank and Nationwide Building Society to record low coupons, write Graham Bippart and Tom Porter.

Investors have put in nearly €45bn of orders across three new additional tier one deals, in a week that has seen numerous records in the asset class broken. The activity was variously described by bankers as a “bonanza” with “no end in sight” for demand, causing both excitement and a tinge of bewilderment among market pros.

British American Tobacco raised €1bn in the bond market today, completing a hat-trick of deals by the three leading European cigarette makers. The transaction’s heavy oversubscription suggested there had been no impact either from the clustering of tobacco issuance, or from Russia’s alarming intervention in Ukraine.

Nationwide Building Society has thrown its hat into the ring for selling additional tier one debt, mandating lead arrangers to gauge interest in what would be the first such deal to be denominated in sterling and the first AT1 paper to be sold by a non-bank institution.

Gas Natural Fenosa, the Spanish gas and electricity company, issued on Thursday the first Spanish corporate bond of the year, and was swamped with a €5bn order book for the €500m no-grow issue.

BP continued a busy month of bond issuance on Tuesday with a €2bn issue, which echoed in scale the €2.5bn dual trancher it sold in February 2012.

Peripheral eurozone sovereigns, regions and agencies are gaining access to ever more diverse pools of liquidity — including conservative investors in long tenors — as yields hit historic lows and spreads scream in towards the core. But even more fuel could be added to the rocket powered rally, as growing tensions in Ukraine force investors to jettison emerging market debt and snap up the periphery’s paper.

Peripheral eurozone sovereigns, regions and agencies are gaining access to ever more diverse pools of liquidity — including conservative investors in long tenors — as yields hit historic lows and spreads scream in towards the core. But even more fuel could be added to the rocket powered rally, as growing tensions in Ukraine force investors to jettison emerging market debt and snap up the periphery’s paper.

Mexican microfinance company Crédito Real may make a second attempt at an international bond issue as a part of a liability management exercise, but LatAm banks remain starved of supply despite claiming conditions are ripe for a blue chip issuer to lift issuance volumes.