UK

The UK Municipal Bonds Agency this week took a step towards issuing its first bond after Moody’s granted the institution its first ever rating. The move came as a US asset manager and consultancy firm opened a UK branch with the specific aim of bringing more UK local authorities to the bond market.

Debt holders of two insolvent UK speculative grade borrowers, fashion retailer New Look and restaurant chain Prezzo, are considering company voluntary arrangements (CVAs) to allow new property agreements. The result may offer the whole European retail sector a template to stave off what market experts a say risks being a spate of defaults. Victor Jimenez reports.

Three sterling deals this week matched the busiest week of 2018 for the currency as two UK corporate issuers returned to the market after notable absences and a US issuer opted for sterling for its first non-dollar deal.

UK finance minister Philip Hammond finally laid out the country’s position on Brexit and financial services in full on Wednesday, in a speech greeted warmly by the City. However, it was in stark contrast to the position of some EU member states, notably France, that financial services cannot be included in a free trade agreement.

John Laing Group, the UK infrastructure projects company, this week unveiled plans for a £210m rights issue to take advantage of a “growing pipeline of opportunities”.

UK homebuilder Taylor Wimpey has amended and extended its £550m credit line, doubling the weighted average life of its committed facilities in the process.

Hammerson, the UK property company, has agreed terms on a new £1.5bn three year credit facility, which it will use to refinance the debt of acquisition target Intu and lower its interest payment costs.

Thursday saw two UK corporate issuers return to the sterling market after notable absences. Southern Gas Networks had not issued for more than two years, while the recently renamed Optivo Finance had been away for five years.

Bond clearing house Euroclear intends to move its holding company from the UK to Belgium as it prepares for the “risks” posed by the UK’s departure from the European Union.

On Wednesday, German business software company SAP printed a €1.5bn triple tranche deal at tight spreads following more than a year and a half without issuing, while American IT services firm DXC sold its first non-dollar deal.

Hiscox, a London-listed insurer, opened books on a short five year senior bond in sterling on Wednesday, following a period of underperformance for market.

Even allowing for the pause in European corporate bond issuance caused by the volatility of global markets early in February, the month's primary activity proved to be meagre. But investors are hoping the signs for March are better.