Spain

Banco de Sabadell’s debt securities took a nose-dive in the secondary market on Friday morning, after the Spanish lender said that it had failed to agree on the terms of a merger with BBVA.

Spanish pharmaceutical bank specialist, Bancofar and its parent, Banco Caminos, which provides finance to civil engineers, have set up small covered bond programmes that have been assigned an Aa1 rating by Moody’s.

The European Central Bank has warned that some banks face a sharp spike in the cost of their bond funding, as the economic fallout from the coronavirus pandemic begins to translate into credit rating downgrades.

Audax Renovables, the Spanish renewable electricity producer, has become the latest European issuer to issue a green convertible bond, raising €125m.

A €200m share placing in Fluidra, the Spanish swimming pool equipment company, caught investors in a buoyant mood on Wednesday evening, with bookrunners having to enlarge the deal to satisfy demand.

BBVA said on Monday that it had reached an agreement to sell its US subsidiary to PNC Financial Services. The Spanish bank’s bonds rallied sharply on the news of the deal, which will increase its main capital ratios by as much as 300bp.

Permanent TSB has picked banks to arrange the sale of a new additional tier one (AT1) from its holding company, a deal that could be used to replace the Irish lender's outstanding opco bond.

Cellnex, the highly acquisitive Spanish telecoms infrastructure company, has become the first European issuer to tap the equity-linked market in the wake of the US elections, with a jumbo 11 year €1.5bn convertible bond – the longest maturity seen in the market for over a decade.

Fresh lockdown restrictions added to a sense of anxiety in Europe at the start of the week, with credit markets already on tenterhooks ahead of the US presidential election.

Shares in Spanish solar equipment maker Soltec Power have surged in the aftermarket despite the immense market volatility this week sparked by a surge in coronavirus cases across the European continent, amid huge investor interest in the renewable energy space.

Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark and bid-yields from the close of business on Monday, October 26. The source for secondary trading levels is ICE Data Services.

The IPO of Soltec Power, the Spanish maker of solar trackers for renewable energy generation, is due to be priced at €4.82, the top of the initial range, after attracting strong demand from investors keen to add stocks with strong ESG credentials to their portfolios during the pandemic.