UK

The internationalisation of the Schuldschein market, Germany's answer to private placements, has been widely hailed, with foreign issuers and investors increasingly prominent. But even the banks that arrange the deals now include some surprising non-German names, writes Elly Whittaker.

Capital markets issuance from higher education institutions has surged since government funding dried up, challenging lending from the European Investment Bank, while more selective participation from private investors means that universities may struggle to keep investing.

Covered bonds worth almost €7bn were issued this week but, by virtue of its size, oversubscription ratio and breadth of demand, Nationwide Building Society’s €1bn deal stood out.

European Central Bank president Mario Draghi said on Thursday he was prepared to cut interest rates and ramp up quantitative easing, creating a credit market rally that sent iTraxx Europe and Crossover indices back inside their levels before the end of September spike in volatility.

Teva, the New York-listed Israeli pharmaceutical company, held a meeting with banks on Wednesday for the syndication of $33.75bn of loans to buy generic drug business Allergan Generics.

Hammerson, the UK property company, plumped for the sterling bond market on Tuesday and was rewarded with a well oversubscribed £350m deal, after a roadshow during which it considered issuing in euros.

The UK Debt Management Office built its largest ever order book for a syndicated bond on Tuesday, but bankers away from the deal felt it was the trade’s timing that was particularly impressive.

One would be forgiven for thinking demand for British government debt was drying up, given some of the reporting in September that bid to cover ratios at Gilt auctions were falling.

Investment company Octopus Investments has received £400m in syndicated loans to fund its acquisition of a portfolio of UK solar projects.

The People’s Bank of China (PBoC) priced its first offshore bond on October 20, raising Rmb5bn ($788m) from a dim sum deal widely hailed as important for the internationalisation of the Chinese currency. But while the transaction is a landmark for the country, doubts remain about whether more such issuance will follow from the central bank, write Carrie Hong and Narae Kim.

Hong Kong and London’s futures and commodities exchanges have singed a pact to develop a trading link between Hong Kong Futures Exchange (HKFE) and the London Metal Exchange (LME), alongside a clearing link to be called the London-Hong Kong Connect.

A senior FIG syndicate banker has quit BNP Paribas to move to Danske Bank in Copenhagen.