Société Générale

Public sector bond markets are under threat from violent price moves and low liquidity for months to come, warned SSA bankers, after government bonds sold off sharply on Wednesday.

Germany showed six years away from syndications had not left it rusty on Tuesday, as it aced a €2.5bn April 2046 that extended its inflation linked curve by 15 years.

Bpifrance is looking to revive the 15 year part of the euro curve, as SSA issuers and bankers heed European Central Bank president Mario Draghi’s advice to endure volatility.

Two first time bond issuers joined the corporate pipeline on Tuesday, with TDF Infrastructure and the University of Liverpool preparing to debut, despite a choppy primary market.

Gecina, the French real estate investment trust, issued its second euro bond of 2015 on Tuesday, and had to pay a chunky new issue premium and higher yield than last time.

Uralkali, the Russian potash fertiliser producer, has added a further $25m to a recent loan agreement, which it had already increased by $100m last week.

Haikou Meilan International Airport Company has opened books on a three year offshore renminbi offering, the company’s first foray into the dim sum market.

A first syndication from Germany since 2009 could be a reality this week — although syndicate managers on the mandate are still weighing up the health of the euro market.

Intesa Sanpaolo is set to price its latest five year floating rate note with a decent new issue premium relative to its FRN curve.

The Gabonese Republic and MFB Hungarian Development Bank have little in common, other than being the best prospects to break the Middle East’s dominance of the CEEMEA benchmark market.

Bankers are eagerly awaiting a second course of international Russian loans in June to follow Uralkali’s April starter, and this week two more borrowers emerged to whet the appetite.

Bank of Sharjah priced its first international bond deal on Monday, while National Bank of Abu Dhabi and Drake & Scull International added their names to the Middle East pipeline. But there are signs the run of Middle East deals is leading to fatigue in the conventional market.