UK

A group of small shareholders in Afren, the embattled London-listed oil exploration company, is striving to block Afren's restructuring agreement with its creditors.

Torrid market conditions have kept issuers away from the euro benchmark market since April 29, forcing borrows to consider alternative currencies. On Tuesday, Abbey printed a £500m three year sterling deal, and even though the deal was not subscribed, bankers felt the sterling market was still open. Separately, ANZ has mandated leads for the second dollar benchmark from Australia this year.

Achmea Bank has priced its first RMBS of the year, Virgin Money has announced a mandate for a new UK RMBS and another issuer is planning to sell the full capital structure of an RMBS backed by Irish mortgages.

Fitch has put the £1.1bn of covered bonds issued by Clydesdale Bank on Rating Watch Negative (RWN) after its parent National Australia Bank said it intended to proceed with a sale of its subsidiary.

Northern Rock Asset Management (NRAM) set the early redemption price for its €2bn 3.875% November 2020s. It is looking to buy back all the notes with a tender offer and consent solicitation and will hold a meeting next week.

Northern Rock Asset Management (NRAM) will repurchase its €2bn 3.875% November 2020s at 121.494.

UK covered bond programmes have the highest foreign exchange gap according to Moody’s. But the fact UK issuers have issued predominately issued in sterling this year shows they are attempting to reduce this exposure.

Nationwide Building Society is continuing its funding run after already setting a strong precedent in 2014. The bank has priced its first sterling covered bond of 2015 following an earlier euro covered bond, a multi currency RMBS and two senior deals issued this year.

Northern Rock Asset Management (NRAM) announced on Monday that it expects a meeting, to be held in relation to a previously announced covered bond tender offer, to be quorate.

Non-core eurozone issuers are set to play an increasing part in the covered bond market as the European Central Bank (ECB) purchase programme drives yields towards new lows. While minimal new issue premiums and negative spreads have not yet deterred investors – oversubscription rates were up this week – bankers are debating if the inflection point is in sight.

Abbey National Treasury Services returned to the covered bond market on Tuesday to issue the second only UK covered bond of the year in euros. The rarity of UK euro issuance combined with a constructive market backdrop and a positive spread to mid-swaps propelled demand for the deal, particularly from high quality asset managers and central banks.

Northern Rock Asset Management (NRAM) made a tender offer for its €2bn 3.875% November 2020 on Monday and will pay a 2% premium. The bank has also proposed an extraordinary resolution to redeem all notes other than those tendered, for which it will not pay a premium.