Société Générale

With investors squealing at this week’s new issues that crunched spreads to record lows, next generation covered bonds could meet the sector’s increasingly desperate need for higher yielding products, writes Bill Thornhill.

French oil company Total pumped up €20bn of orders for its €5bn hybrid bond, the second biggest corporate hybrid ever and the largest amount issued on one day.

Société Générale was able to shave a few basis point off the traditional spread between its tier two curve and that of French peer BNP Paribas on Thursday when it took to the bullet tier two market in euros.

Hong Kong listed Fosun International has chosen three French lenders to supply funds for its acquisition of Club Méditerranée (Club Med).

Jaguar Land Rover, the UK car maker, issued on Thursday a £400m eight year high yield bond yielding just 3.875%, to finance a tender offer for its 2020 sterling notes.

Société Générale is taking advantage of a secondary rally since Deutsche Bank and BNP Paribas last week found big success in the bullet tier two market to price its own deal, narrowing the traditional 30bp gap between its junior debt and that of BNP Paribas.

Promsvyazbank (PSB) has repurchased $110.5m of its senior and subordinated notes as it attempts to manage its liquidity.

The Republic of Lebanon has picked three firms to run a Eurodollar benchmark, it’s first deal since it issued a four tranche bond last spring.

Madrid mandated banks for a euro deal on Tuesday, with SSA bankers confident that Greece’s discussions with creditors will not impact other eurozone periphery borrowers.

Canal de Isabel II Gestión, the municipal utility company that supplies water and waste water services to the Madrid region, issued its first euro bond, a €500m 10 year, on Tuesday. The deal found plenty of demand, getting €3.3bn of orders.

Hong Kong listed Fosun International has chosen three French lenders to supply funds for its acquisition of Club Mediterranee (Club Med).

Although Fosun’s acquisition of Club Mediterranee (Club Med) marks another step in the advance of Chinese investment in Europe, the transaction’s buyout debt is unlikely to send pulses racing, as the borrower is aiming for a conservative debt package.