Spain
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The chief executive and other top officers of Merlin Properties, the acquisitive Spanish real estate company, have been on the road this week, for the company’s second rights issue in three months, as it seeks €1.034bn to buy Testa, another property firm. -
Banco Popular Espanol has mandated leads for a long five year Cedulas benchmark, the second from Spain in that maturity this year.
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Citigroup sold a 4.17% stake in Abengoa’s class ‘B’ shares in an accelerated bookbuild on Thursday night, for €97.6m.
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The proportion of residential mortgages in Spanish Multi-Cédulas (MC) has risen, leading to an improvement in their credit quality, Fitch said on Tuesday.
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Santander has issued European covered bonds from Spain, Portugal and UK but could soon be about to issue Obligations Foncières from a new French programme. However, the sub benchmark sized deals are likely to be placed with the ECB said bankers.
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Spanish covered bond spreads were stable on Monday following the multi-notch rating upgrades Moody’s announced at the end of last week, as developments over Greece’s debt negotiations took centre stage. Though a few selective high beta names attracted real money interest, the overall market was heavy even as some government bonds were 20bp tighter or more.
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Unión de Créditos Inmobiliarios’ has issued the first Spanish RMBS since 2007. Meanwhile, ING made its first appearance in two years with an RMBS backed by better quality collateral than many covered bonds, and with a much fatter spread.
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Banco Sabadell was right to approach its possible 10 year covered bond with caution. But if it had been serious about the longer tranche, it would have shown the market a representative spread.
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Banco Sabadell ended a month long drought of periphery issuance on Friday by only just managing to print a €750m five year covered bond. A mooted 10 year never appeared.
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Banco Sabadell mandated leads for a five year Cédulas Hipotecarias on Thursday and said it is exploring the possibility of a 10 year. Ambiguity over whether a long dated tranche will emerge or not reflects the view that indicative pricing on the longer bond looks ambitious.
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DG Hyp printed the second German Pfandbrief of this week on Thursday, proving the market is very much open to German borrowers. But the success of the deal does not guarantee an easy reception for Banco de Sabadell, the first peripheral name to mandate since Bank of Ireland on April 29.
