Spain

Spanish telecoms provider Telefónica latched onto the swell of investor demand for riskier corners of the European investment grade corporate bond market on Thursday as it issued a €1bn hybrid bond.

Transport infrastructure group Ferrovial on Wednesday returned to the bond market after a two year absence, selling a €500m note. It was followed later in the week by two other Spanish corporates.

Instituto de Crédito Oficial showed on Wednesday that the strong demand present in the dollar market over the last few months is not solely the preserve of the highest rated issuers.

A trio of public sector borrowers are set to spray the short end of the dollar curve with deals on Wednesday, including one making its first visit in over two years, as markets priced in an ever decreasing chance of a rate rise at the next US Federal Open Market Committee meeting later this month.

German health care group Fresenius is set to unroll more than €5bn of debt to fund its acquisition of Quirónsalud, a Spanish peer, which it will integrate into its Helios hospital network.

Telefónica announced on Monday an intention to sell a portion of its telecommunications infrastructure subsidiary, Telxius. It is part of the largest listed Spanish company's attempts to reduce its debt, along with a listing of UK mobile firm, O2.

Spain was the outlier among a trio of eurozone periphery sovereigns to auction debt this week, as its 10 year yields rose while those of the other two fell — a move that analysts blamed on Spain’s political situation.

Abengoa, the Spanish engineering and renewable energy firm, is heading to its October make-or-break deadline convinced that 75% of creditors will support its final restructuring debt plans, thus avoiding liquidation.

New money, new bonding facilities, a new army of investment funds, and a 97% debt write off were unveiled on Thursday in the latest plan to rescue the Spanish renewable energy company Abengoa from bankruptcy.

Spanish engineering firms with exposure in Latin America may not be the most heavily traded segment of the credit markets, but they are certainly proving the most vulnerable.

An auction to settle credit default swaps referencing Grupo Isolux Corsán Finance is expected to take place on August 24, the International Swaps and Derivatives Association’s (ISDA’s) EMEA Determinations Committee (DC) said on Wednesday, as it published an initial list of deliverables that only contained one bond.

The Autonomous Community of Madrid has crushed its long dated borrowing costs with a 15 year euro medium term note.