UK

German railway wagon lessor VTG has sold €550m of private placements to institutional investors in Europe and the US, according to market sources. More and more, US PPs are being marketed to traditional Euro PP investors.

Yorkshire Building Society (YBS) has mandated leads for the first euro covered bond from the UK since January, My Money Bank has also mandated and, after concluding a roadshow, Sumitomo Mitsui Trust Bank is due this week too. All three bonds will offer a temptingly high spread.

Global equity capital markets bankers anticipate a disorderly US election in November. They fear that a disputed contest between president Donald Trump and former vice-president Joe Biden could lead to sustained market volatility which would severely impact ECM issuance.

Saga, the cruise line operator and provider of retirement services to the elderly, has finished a multi-leg £150m ($193m) recapitalisation intended to repair its balance sheet following a collapse in bookings owing to the Covid-19 pandemic.

Kaspi IPO has officially launched its second attempt at a London listing and already built up a substantial shadow book of demand for the deal.

IAG, the airline holding company that owns British Airways, had no seats remaining as it priced its €2.75bn rights issue, with 100% of shares taken up by shareholders.

By offering a hefty pick-up over national champions, Bluestep Bank, a Swedish non-standard mortgage lender, attracted a hefty order book for the second deal from its newly established covered bond platform this week.

Rolls-Royce, the UK aerospace engineering company, has confirmed it aims to raise £5bn from a financing package that includes a £2bn rights issue. The deal’s launch ends months of speculation about whether the company would need to raise capital to endure the Covid-19 pandemic.

Lloyds Banking Group asked permission from investors this week to change the reset rates on two of its additional tier one (AT1) securities so they bear reference to Sonia. The move is likely to kick off a trend in sterling and in dollars, as market participants prepare for the death of Libor.

Dutch food and biochemical company Corbion has signed a $170m US private placement with five institutional investors.

Serco has sold $200m of US private placements, according to market sources. The deal shows there is still muted support for UK support services, given the right credit and offer, after the sector fell out of favour with PP investors a few years ago.

The booming IPO market for special purpose acquisition companies (Spacs) is continuing with a new London-based blank cheque company focused on education technology.