Société Générale

Spain showed that a 50 year euro benchmark is not just the preserve of core eurozone sovereign issuers on Wednesday and had plenty of leftover demand to suggest that Italy could follow with a half century bond of its own.

A former director-level leveraged finance banker at Lloyds joined Société Générale this month on a short term contract.

Uncertainty regarding the outcome of the US Federal Open Market Committee’s (FOMC) meeting in June drove public sector borrowers to target the short end of the dollar curve this week, said bankers.

Nexity, the French property developer, was able to increase the size of its second convertible bond issue on Tuesday, as existing investors eagerly bought into the new deal.

Spain has nipped in ahead of its eurozone periphery peer Italy, mandating banks for a debut 50 year euro benchmark on the same day that the Community of Madrid had a strong showing at the short end and Greek yields rallied across the curve.

Public sector issuers are printing at the short end of the dollar curve, a tactic they are likely to stick to in the build-up to the next US Federal Reserve rate decision on June 15, said bankers.

Mubadala Development Company demonstrated just how much hunger exists for Abu Dhabi credit on Monday, printing its $500m 2.75% 2023s from a book of $5.1bn.

Double-B rated issuers WEPA Hygieneprodukte, Europe’s leading privately owned tissue manufacturer, and Barry Callebaut, the Swiss chocolate producer, both followed Volvo’s lead in launching bonds on Monday, helping to keep a stuttering primary market active.

A weaker than expected set of non-farm payroll data last week did little to deter issuers on Monday as a pair of borrowers awarded mandates.

Ceské dráhy, the 100% state-owned Czech national railway operator, has mandated two banks for a Reg S only euro bond.

Lenders have piled in with aggregate commitments well beyond the €1.5bn deal size for Qatar National Bank, as the lender swerved negative ratings actions against a number of Qatari banks.

Oil products storage and distribution firm Puma Energy has increased the size of its latest revolver to $800m from $500m, with 35 lenders making commitments. The company has also managed to extend the maturity on part of a three year facility raised last year.