Société Générale

Louis Dreyfus Co Asia has become the latest commodities company to tap the debt market, seeking a $450m sustainability-linked loan that is being widely syndicated.

Valeo, the French auto parts maker, and US exchange company Nasdaq brushed off any worries of contagion from a weak sterling market to print bonds in euros flat to fair value on Tuesday, with the issuers able to take full advantage of the an exceptionally quiet market.

France’s IPO renaissance is expected to keep up the pace in the second half of the year, aided by the strong performance of French equities and a rebounding economy.

Valeo, the French car parts maker, has mandated for a debut sustainability-linked bond, hours after posting results showing a solid bounce back from last year.

French investment grade corporate issuers Alstom and Covivio Hotels ignored growing worries over rising coronavirus infections on Tuesday to haul in bumper demand for new bonds.

The Republic of Benin launched its debut SDG (Sustainable Development Goals) bond in its second international offering of the year, following a two year hiatus. Market participants say although deals like Benin’s are getting over the line, concerns are brewing over the sustainability of high yield sovereigns tapping investors so freely.

Covered bond and SSA research analysts at Société Générale are set to leave the bank for other firms later this year.

The Republic of Benin plans to be the first sub-Saharan African sovereign to tap the international bond market twice in 2021. The sovereign this week intends to sell a bond with a sustainability feature, making it one of the first in the region.

Enel smashed a series of records when it came to the dollar market with a $4bn sustainability-linked bond on Wednesday.

Central bank policy is expected to create eye-catching arbitrage funding opportunities for high grade US companies in euros, with tens of billions worth of Reverse Yankee bonds forecast for the back end of this year. Meanwhile, the dollar market remained a strong draw for European companies this week despite rates volatility, after Enel printed the largest ever sustainability-linked bond. Mike Turner reports.

Two public sector borrowers hit the primary euro market on Thursday, with the International Development Association selling its biggest ever bond in the currency and France’s Action Logement Services extending its curve with just its second ever trade.

A2A, the Italian utility, has signed a €500m sustainability-linked revolving credit facility, as the company shifts large parts of its capital structure to key performance indicator-driven pricing.