UK

In a response to feedback from UK financial institutions, the Prudential Regulation Authority has said it will assess the appropriateness of any reduction in Pillar 2A (P2A) requirements so that the buffer provides a fair measure of the risks facing banks as the UK prepares to leave the EU.

UK home emergency and repair company Homeserve has entered the US private placement market, according to sources, looking for at least £125m.

Equity capital markets are gearing up for a busy autumn and UK companies have been at the forefront of activity in Europe since the coronavirus pandemic began. Bankers and investors have said they fear the disruption a second wave of Covid-19 and volatility surrounding November's US election could bring, but they should not forget either that the UK is edging towards a no-deal Brexit at the end of 2020.

The UK has been at the forefront of Europe’s equity capital raising wave, as companies respond to the Covid-19 pandemic. De La Rue, which makes passports and banknotes, became the latest UK firm to do so with a £100m raise on Monday — and sources believe there is plenty more to come.

Apollo Global Management announced on Monday a new private credit unit aiming to provide $1bn direct loans to larger firms, in the first instance of a direct lending fund with its eyes only fixed on big business.

Investors in UK universities are struggling to work out just how risky the sector is, as its lucrative international student intake as well as pension liabilities are still unclear. A report published by the Institute for Fiscal Studies (IFS) on Monday estimated that 13 universities may go bust if they do not either carry out debt restructurings or receive government bailouts.

Rolls-Royce, the UK maker of aircraft engines, may soon launch a share sale as part of an effort to repair its balance sheet, following a huge downturn in the aviation industry caused by the Covid-19 pandemic.

Hipgnosis Songs Fund, the London-listed investment trust focused on song royalties, has announced a fresh £200m share sale as it prepares to acquire up to £1bn of additional music catalogues.

Shawbrook Group, the specialist UK lender, was able to price a new tier two at 9% this week. The deal is set to replace an older bond, which is subject to a tender offer and is otherwise callable later this year.

The biggest reform of UK insolvency law for more than a decade was rushed through Parliament and enacted on June 26, as the coronavirus lockdown is expected to cause a wave of defaults across the economy, reports Jon Hay. The law’s complexity and the haste of its preparation have left restructuring experts chewing over many aspects where they foresee risks of unintended consequences — but also eager to try out some of the law’s new powers.

Skipton Building Society is looking for approval from investors to convert the interest basis on one of its covered bonds from Libor to Sonia.

Europe’s equity capital markets bankers are preparing for a busy autumn of IPOs and have been meeting with investors to secure early support for these deals. Bankers are hoping the new deals retain some of the features of successful listings in the first half of the year.