Spain

Fondo de Amortización del Déficit Eléctrico (FADE) was warmly welcomed by capital markets on Tuesday for its first benchmark in 18 months, while Asian Development Bank hit screens looking for its first syndicated euro deal in almost three years. HSH Finanzfonds also raised cash on Tuesday.

A few of Europe's smaller borrowers are trying their luck now that the storm of issuance that thronged markets through most of January has abated.

Spain added another entry to its growing book of blockbuster trades this week, using a novel early-bird feature to help drum up demand for its traditional 10 year annual opener. The deal came as Italy’s spread over Spain widened, despite a court ruling that analysts said should be positive for political stability in Italy in the near term.

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Euros in the public sector bond market have enjoyed an exceptional run throughout January, providing borrowers from all across the public sector with funding in a tremendous breadth of maturities.

The Principality of Asturias has become the latest Spanish region to issue bonds, rather than accepting loans from Spain's regional liquidity fund, the FLA.

Santander has become the first Spanish lender to raise non-preferred senior debt, even though Spanish law cannot yet accommodate the new asset class. The bank paid a small premium, and took an important early step towards its sizeable senior target for total loss-absorbing capacity (TLAC).

Banco Santander made a profit of €6.2bn last year as a booming performance in Latin American markets helped offset its exposure to a sinking pound.

The Spanish sovereign launched a €9bn 10 year on Tuesday, bringing the largest eurozone sovereign syndication so far this year.

Obrascón Huarte Lain, the Spanish construction company, sold a 1.84% stake in Abertis, the Spanish toll roads group, through an accelerated bookbuild launched on Monday evening that was covered very quickly after launch and priced with no discount to the close.

Two more European sovereigns have hit screens with 10 year euro mandates, hoping to enjoy the same success that Portugal and Belgium with their deals at the 10 year range this year.

Spanish and French covered bonds were well supported on Monday with further buying reported following demand seen last week. With only one Spanish Cédulas seen so far this year, the market should be receptive to more supply.