UK

Lloyds Bank plc returned to the sterling covered bond market for the second time this year to issue the first fixed rate deal in the UK currency since 2012 on Friday. Following the long run of three year floaters the issuer priced a seven year, which benefitted from new ICMA guidelines, applied for the first time to sterling covered bonds.

China Construction Bank (CCB) and Commerzbank have launched the first Ucits-compliant ETF fund under China’s RQFII scheme. The fund, which was announced on March 25, will invest in China’s money market.

Bank of America Merrill Lynch and Deutsche Bank are working on allocations tonight on the IPO of Auto Trader, which has been a big success.

Afren, the London-listed, Africa-focused oil exploration company, has heralded its initial agreement with a group of lenders and bondholders as the only way to avoid default.

The UK’s Coventry Building Society spurned the conventional three year sterling floating rate covered bond sector, and following its recent roadshow, sold a five year floating rate sterling benchmark covered bond on Tuesday.

Finance for social investments could take a step forward following the publication of free template documents to create an association and raise debt finance.

Afren, the Africa-focused oil exploration company listed on the London Stock Exchange, has avoided default on a $300m loan after obtaining a deferral from banks on the $50m amortisation payment that was due on Saturday January 31 for its Ebok debt facility.

Leeds Building Society has priced a £300m three year floating rate covered bond on Monday, as Belfius Bank and BPCE mandated leads respectively for 10 and seven year deals. The primary activity comes as Nordic issuers emerge from blackout, and amid talk that a Swedish 10 year deal could soon surface.

Restaurant chain operator Wagamama will cancel its banking debt with the £150m senior secured bond it sold on Wednesday, a debut issue for the company.

Covered bond issuers from outside the Eurozone launched deals this week denominated in sterling and Australian dollars. But a bigger proportion were from the Eurozone where borrowers launched deals in the single currency in maturities that ranged from four to 20 years. The transaction were priced generously and enjoyed a solid reception, with central banks taking a back seat.

Lloyds has become the fourth issuer this year to fund in sterling covered bonds, a market that has so far provided €3.65bn equivalent, almost as much as has been issued in euro benchmark format this year.

The primary covered bond market was re-opened by Barclays Bank, which issued a £1bn three year sterling deal on Monday. Order book momentum was slow to build reflecting an underlying uncertainty about the near term spread outlook and the size of new issue premiums that will be required next week when the more important euro market is expected to open.