UniCredit

Companies piled into the bond market with hybrid capital issues this week to raise €4.95bn between them, as syndicate bankers say that they are encouraging as many borrowers as possible to consider pushing out higher risk trades before raising senior debt.

Supply and demand for senior financial institution bonds was lukewarm this week, as issuers and investors favoured higher yielding products amid healthy market conditions. FIG deal arrangers are predicting that the trend is set to continue and that issuers will favour capital trades.

Total, the French oil and gas major, continued the strong run of hybrid trades in the corporate market this week, launching a chunky €1bn note 37.5bp inside initial price thoughts on a yield basis.

Mediobanca has been speaking with a 'high' number of investors in the euro market this week, as it gears up to sell the first ever deal from its green and sustainable bond programme.

Communauté Française de Belgique returned in mid-August after a seventh month absence to print a slew of deals for a combined €404m, according to Dealogic.

Freudenberg, the German industrial conglomerate, has signed a €500m revolving credit facility, as European lenders say that refinancing facilities are expected to take up a large portion of their time for the rest of the year.

Ista, the German energy company, has signed a €1.85bn sustainability-linked loan, as interest in this structure among European companies returns to near pre-crisis levels.

Ista, the German energy company, has signed a €1.85bn sustainability-linked loan, as European corporates considering the ESG-linked structure nears pre-crisis levels.

National champions have outpaced their smaller peers in the rally in bank bond spreads over recent months. Investors say individual valuations in the middle tier of the sector could pick up, but that the chances of consolidation may first have to improve.

German drug packaging manufacturer Gerresheimer launched a Schuldschein on Tuesday, according to market sources, ahead of €190m of debt maturing this November.

Spanish telecommunications infrastructure company Cellnex has finished its €4bn rights issue to fund further M&A opportunities, with an extremely high oversubscription.

Local lenders in central and eastern Europe have stepped up for local clients during the coronavirus pandemic. Structural factors will help them fortify their position against international banks should infections rise again.