UK

More UK councils are considering selling private placements, according to several sources familiar with the situation, as their funding needs escalate thanks to the coronavirus pandemic. Institutional investors, some of which are sceptical of local authorities’ suitability for the US PP market, say they are more likely to consider lending to borrowers rich in assets.

The Financial Conduct Authority has written to UK banks warning them against pressuring clients for mandates on Covid-19 equity capital raises using their lending relationship as justification.

Beijing Enterprises Clean Energy Group (BECE) has returned with a three year renminbi-denominated puttable bond, bringing yet another green transaction to the Panda market.

Greencoat UK Wind, the highly acquisitive UK investment fund focused on UK wind farms has entered an agreement to acquire a Scottish wind farm for £320m. Greencoat has all the financing it needs already to complete the deal, scheduled to close in the first quarter 2023, but it is looking at further acquisitions and could turn to equity to finance it.

Deutsche Bank’s additional tier ones surged higher in value this week, after the German lender reassured the market with positive guidance on its first quarter earnings.

Wells Fargo was set to raise €3bn of senior debt in the euro market on Friday, becoming the first US bank to visit the currency following first quarter results.

Legal & General and Phoenix Group Holdings have lifted the lid on subordinated bond supply in the sterling market this week, with spreads having drawn tighter despite uncertainty about the impact of the coronavirus pandemic.

The UK Debt Management Office has announced a borrowing programme that will, in the next four months alone, exceed the country’s largest ever annual total. Gilt yields have stayed steady, thanks to investors’ faith in the Bank of England’s asset purchase facility.

The UK Debt Management Office has announced a borrowing programme that will, in the next four months alone, exceed the country’s largest ever annual borrowing volume. Gilt yields have stayed steady, thanks to investors’ faith in the Bank of England’s asset purchase facility.

Europe's equity capital market bankers are expecting a resurgence of secondary share sales by investors over the coming weeks as financial sponsors look to take advantage of the rebound in global equity markets since the start of the pandemic to raise cash to redeploy elsewhere.

One of the co-heads of the London Group of Tradition, the interdealer broker that is one of the largest in the over-the-counter derivatives market, is leaving the firm.

With its more relaxed rules around pre-emption rights, the UK has led from the front by allowing embattled companies to raise equity to keep themselves alive during the coronavirus pandemic. The market's flexibility means there have been no damaging delays waiting for for formal rule changes. Such pragmatism is admirable, although more must be done to protect retail investors from dilution.