UK

As the UK approaches the end of its Brexit transition period there are growing expectations that a trade deal will be struck with the EU. It is hoped that that will contribute to the factors driving spreads tighter on UK covered bonds.

Schroders, the UK asset management company, has partnered with Big Society Capital to seek to list a new fund on the London Stock Exchange to invest in assets which have a positive social impact on the UK.

This week in Keeping Tabs: US treasury secretary Steven Mnuchin asks the Fed to give back emergency funding, bond markets prove their real worth, and why Brexit negotiators need to realise that English isn’t the only language.

UK chancellor of the exchequer Rishi Sunak is looking at ways to relax listing rules on the London Stock Exchange to make the exchange more attractive for tech company IPOs.

Millicom International Cellular has sold a 5.2% stake in Helios Towers, the Africa-focused telecommunications infrastructure company, through an accelerated bookbuild.

Smurfit Kappa, the Irish packaging company, priced a €660m capital raise on Thursday night, to allow it to take advantage of market opportunities during the Covid-19 recovery, as well as give it the firepower to withstand any downturns.

Small transactions reached big audiences in the financial institutions bond market this week, as investors realised they would need to consider buying sub-benchmark supply in order to make the most of a dwindling deal pipeline. Tyler Davies and Frank Jackman report.

Northumberland Estates, the body that manages the interests of the Duke of Northumberland, has sold £200m worth of private placements to US and UK investors, according to market sources. The borrower joins Blenheim Palace, the Duchy of Cornwall and a long list of esoteric credits to tap the private markets.

Capital & Counties Properties, the London landlord that owns large amounts of Covent Garden, is strengthening its liquidity position by issuing a £250m bond exchangeable into shares of Shaftesbury.

Syncona, the UK life sciences investor, has launched a new gene therapy company, through a £45m series A private fundraising round. The company could be a future candidate for a lucrative biotech listing.

The sterling syndicated loan market hosted two environmentally friendly trades this week, with UK power generation company Drax and renewables fund Octopus Renewables Infrastructure signing facilities.

Croda, the UK chemicals company, has closed the books on a £608m ($807m) equity raise to help fund the purchase of Iberchem, the Spanish fragrance manufacturer.