Spain

Abengoa is swimming for its life, but looks likely to sink beneath the waves of debt. Already, hindsight is beginning to make this look like an outcome everyone should have seen coming.

Banks, investors and even the Spanish and US governments are bracing themselves for a long and bruising battle to restructure Abengoa, the Spanish renewable energy group likely to enter a pre-insolvency period on Friday.

Abengoa's banks refused it a vital $1.5bn of new loans over the past fortnight, causing its rescue investor Gonvarri to pull out, sources said today. But Abengoa could yet avoid bankruptcy, they argued.

Holders of credit default swaps referencing the Spanish renewable energy company have asked the International Swaps and Derivatives Association (ISDA) whether there has been a bankruptcy credit event. But Abengoa had not yet formally requested bankruptcy protection as GlobalCapital went to press.

It may be late November, but equity capital markets are still busy with a stack of high profile deals, even now that last week's four Greek bank recapitalisations are out of the way. Abengoa's rights issue now looks unlikely to go ahead, as the company's woes have deepened.

CVC Capital Partners sold its last shares in Abertis Infraestructuras, the Spanish toll roads and telecoms infrastructure company, on November 19 in an €818m block trade that gave Bank of America Merrill Lynch’s league table standing a big boost.

Deutsche Bank’s Spanish subsidiary issued its first publicly placed Cédulas Hipotecarias on Tuesday, setting a strong foundation for a further €3bn that it hopes to sell.

The European Central Bank has given its strongest hint yet that it could introduce more monetary easing in December, as eurozone periphery issuers enjoyed falling yields and strong demand.

Spain auctioned three year debt at a record low yield on Thursday, but its borrowing costs may have further to fall after the European Central Bank gave a strong hint that it could introduce more monetary easing.

Cores, the agency which stocks Spain’s fuel supplies, printed its first syndicated bond in over a year on Wednesday. French investors propelled the international demand for the paper.

Public sector borrowers are putting the final touches to their funding programmes for the year amid stable market conditions, but there are few signs that any will pre-fund for 2016 in large size.

Deutsche Bank’s subsidiary in Spain successfully issued its first publicly syndicated Cédulas Hipotecarias on Tuesday. The €1bn five year, which attracted a comfortably oversubscribed book, sets a strong foundation for further benchmark supply expected over the next two years.