Investor-Issuer Profiles

ABN sees Rabo’s 10 year, raises six months ABN Amro followed Rabobank out to the long end of the senior unsecured curve on Wednesday, offering investors a little extra yield by opening books on a 10.5 year deal.

ADCB sharpens guidance on LT2 Abu Dhabi Commercial Bank has given final price guidance of 220bp to 225bp over mid-swaps for a 10 year non call five lower tier two bond. Books, which were over $500m, closed at 12pm London time and the note is expected to be today’s business.

Emirates NBD launches perp at 5.75%, books over $4.25bn Books for Emirates NBD’s unrated tier one perpetual note are over $4.25bn and the note has launched at a yield of 5.75%.

Nomura impresses with euro return Nomura printed a euro senior unsecured benchmark for the first time in more than three years on Wednesday, winning plaudits from rival bankers as that rarity drove a strong deal.

Pressure off for Lloyds and RBS as PRA reveals capital requirements Speculation over massive capital holes at Lloyds and Royal Bank of Scotland was thrown aside on Wednesday as both banks said they saw no immediate need to issue fresh shares or print contingent capital securities to meet new regulatory capital requirements set by the Prudential Regulatory Authority. Other UK banks could still issue Cocos, however, said bankers.

Sampo launches benchmark Swedish krona deal Sampo, the Finnish and Estonian subsidiary of Danske Bank, is expected to price a dual tranche benchmark Swedish krona trade on Wednesday afternoon. The deal will be the issuer’s first in the currency in nearly two years.

DVB targets fashionable five years DVB Bank on Tuesday followed fellow European banks into the five year space in senior unsecured, which has been in vogue in recent weeks because of the depth of demand in that maturity.

ING to price first Aussie of the year on Tuesday ING is expected to sell its first public Australian dollar deal of the year on Tuesday afternoon, a five year EMTN. The deal has seen high demand, with the leads expecting to price a deal around twice the size of the issuer’s minimum target.

Ziraat lines up leads for dollar debut Turkey’s Ziraat Bank has picked banks to manage its dollar denominated debut bond deal, the issuer told EuroWeek on Tuesday.

FIG hits pause but pipeline healthy FIG issuers were cooling off on Monday as public holidays across Europe kept syndicates and investors alike away from their desks. But they will be keen to return with the market in fine shape and a clutch of issuers on the road.

Aussies for Garanti as investors ramp up bid for risk The Australian dollar market — once the exclusive preserve of the world’s top quality credits, such as supranationals and agencies — is increasingly opening up to emerging market names, writes Nathan Collins.

UBS courts European Coco demand by cutting out Asia UBS this week proved how much the investor base for loss-absorbing debt has shifted westwards, selling its new contingent capital trade mostly to European institutional investors. By doing so it was able to avoid the 50bp private bank concession that has courted demand from Asian high net worth investors for much of the year.

Premium-light deals on FIG menu as issuers bask on spread plateau Senior unsecured deals came thick and fast this week, but with very thin premiums as investors yearning for financials exposure drove curve-flat deals tighter still in the secondary market.

Big accounts ‘error’ on BNP Paribas bond BNP Paribas achieved its goal of distributing its latest senior unsecured bond among lower-tier accounts this week. The regional structure of the deal scared off many of Europe’s bigger buyers, but the €650m deal traded up as they had a change of heart. The French bank collected €725m of orders from 120 accounts on Tuesday.

BHH drives its rare senior venture with big lead interest An asset manager’s large lead order gave Berlin-Hannoversche Hypothekenbank the impetus to print a rare €300m senior benchmark this week.

ING rides rarity for covered bond success ING Bank priced its tightest ever benchmark covered bond this week and ended a nine-month Dutch drought in that market. After a stream of seven year bonds, the bank’s success with a 10 year tenor demonstrates deep demand at the long end despite low yields, said bankers.

Trio tap covered market as investors look for liquidity Aareal Bank launched the third covered bond tap of the week on Wednesday following earlier deals from Deutsche Pfanbriefbank and Banco Popular Español.

SME-backed covered bond debate drags on The subject of SME loan-backed covered bonds continues to provoke a sharp division of opinion within the industry. And it was a lively topic at the annual covered bond investor conference, held on Thursday in Frankfurt.

Stronger structures could stop covered cuts, says Volk Banca Popolare di Milano’s covered bonds face a ratings cut after Moody’s downgraded the bank on Thursday. Although BPM’s bonds will remain investment grade, an increasing number of covered bonds are slipping into triple-B territory, said analysts, though structural enhancements could help stop the slide.

Morgan Stanley’s 10 year sub raises $2bn Morgan Stanley and American Express Company provided the bulk of the action for dollar investors waiting for Deutsche Bank’s lower tier two trade, which could come as soon as Friday.

Banco Popolare offers investors premium on capital buyback Italy’s Banco Popolare is offering investors a small premium to market value in a buyback of up to €600m of tier one and tier two capital instruments. The bank is targeting five lower tier two securities and four tier one bonds, and has said future calls on the securities would be made on an economic basis.

ASB Bank capitalises on high rating with Swiss deal ASB Bank, the New Zealand subsidiary of Commonwealth Bank of Australia, sold five year Swiss franc debt on Monday, taking advantage of a scarcity of issuance from high grade financials in the currency.

High spread equals success for BofA Merrill Kanga Bank of America Merrill Lynch sold its first Kangaroo bond in nearly three years on Tuesday, pricing a five year dual tranche benchmark during the Sydney day. Investors rushed to pick up the paper, attracted by the high yields on offer and the issuer’s rarity in Australian dollars.

Russia adopts Basel III routine with tier twos for Sberbank and RSB Investors are becoming increasingly comfortable with Russia’s new Basel III rules for tier two bonds. State-owned Sberbank priced its $1bn lower tier two deal on Thursday with only a 12bp pick-up over its outstanding LT2 bond. Meanwhile, much lower rated consumer finance bank Russian Standard Bank is also roadshowing a subordinated bond. Both are Basel III compliant.

ME appetite stays as CBD draws $2.6bn book Commercial Bank of Dubai took advantage of the low number of deals printed from the Middle East since the start of April to price its $500m five year Eurobond on Tuesday from a book of $2.6bn — demand that is much larger than Russian deals are now drawing.

Pipeline clear as LatAm volumes break 2012 numbers Bankers say Petrobras’s record-breaking outing in the bond markets this week leaves the path clear for large issuers as they no longer have to worry about the possibility of competing with the Brazilian oil giant.

Al Baraka seeks $200m with 18 month sukuk Bahrain’s Al Baraka Islamic Bank has opted to raise $200m through a privately placed 18 month sukuk.

JP Morgan reaches for 15 year euros to offer investors yield JP Morgan was set to print the equal longest euro senior unsecured financial institution bond of the year so far on Friday, as it tried to give yield-chasing buyers something to get excited about.

EuroWeek Bond Awards 2013 The results of EuroWeek's Bond Awards 2013 were announced at our annual Bond Dinner on May 15 at the Guildhall in London. Read the full list of winners and runners-up - all decided in a poll of market participants - here.

ADCB to sell Swiss subordinated Abu Dhabi Commercial Bank is expected to price its first subordinated Swiss franc bond on Thursday afternoon, with the deal set to appeal to retail investors on the lookout for high yielding paper.

Banco Popolare offers premium on capital buyback Italy’s Banco Popolare is offering investors a small premium to market value in a buyback of up to €600m of tier one and tier two capital instruments.

BNZ kicks off Kiwi year in euros Investors had their first chance this year to pick up New Zealand exposure in euros on Thursday, as BNZ International Funding Ltd launched a €500m five year at 54bp over mid-swaps.

Emirates NBD readies Reg S roadshow Emirates NBD (Baa1/A+) has hired six banks to arrange investor meetings for a potential Reg S dollar denominated tier one bond.

Institutional accounts on board with UBS Coco European institutional investors enthusiastically supported UBS’s 10 year non call five contingent capital trade on Wednesday, buying almost half of the deal, after the issuer decided not to offer private bank investors the 50bp concession that has attracted that bid in the past.

IsDB picks banks for dollar sukuk, lines up roadshows The Islamic Development Bank is looking to issue a Reg S dollar sukuk and has mandated eight banks as joint lead managers and bookrunners for the sale.

LV= cleans up with capital markets debut UK insurer Liverpool Victoria got a warm reception from sterling investors on Wednesday with its debut capital markets transaction, a 30 year non-call 10 subordinated bond. The deal was handsomely oversubscribed and performed well in secondary trading, underlining the popularity of insurance credits and the strength of investor demand in the undersupplied sterling market.

Renaissance Credit picks three for dollar bond Russian consumer finance company Renaissance Credit has mandated Goldman Sachs, Sberbank and Raiffeisenbank International to arrange a dollar senior unsecured bond.

Russian Standard Bank kicks off roadshow for LT2 bond Russian Standard Bank picked Goldman Sachs and HSBC to arrange a dollar Reg S subordinated bond and started its roadshow on Wednesday. The meetings for the deal are taking place in Zurich, Geneva, London, Hong Kong and Singapore and finish next Tuesday (May 21).

Sberbank closes books for LT2 at $1.5bn in Europe and Asia Books for Sberbank’s subordinated tier two note have reached $1.5bn in Europe and Asia and have been closed. US books will close later on Thursday afternoon, at around 2:30pm, and pricing will follow shortly after.

UniCredit picks moment for periphery return UniCredit was gathering orders for a 2.5 year floating rate note on Thursday, as it looked to take advantage of a calming of volatility in periphery credit.

Big accounts ‘made mistake’ on BNP Paribas regional bond BNP Paribas achieved its goal of distributing its latest senior unsecured bond among lower tier accounts on Tuesday. The regional structure of the deal scared off many of Europe’s bigger buyers, but the €650m deal was trading inside reoffer on Wednesday.

European buyers stump up for UBS Coco, sterling feels the LV= European institutional investors reinforced their support for loss-absorbing capital instruments on Wednesday, providing the majority of demand for UBS’s low-trigger Coco and allowing the bank’s syndicate to price the deal inside the initial pricing range. Meanwhile, UK insurer Liverpool Victoria made its capital markets debut with a sterling denominated subordinated bond.

ME appetite undented as CBD draws $2.6bn book Commercial Bank of Dubai took advantage of the low number of deals printed from the Middle East since the start of April to price its $500m five year Eurobond on Tuesday from a book of $2.6bn — demand that is much larger than Russian deals are now drawing.

ASB Bank trades on double-A credentials with Swissie deal ASB Bank, the New Zealand subsidiary of Commonwealth Bank of Australia, sold five year Swiss franc debt on Monday, taking advantage of a scarcity of issuance from high grade financials in the currency.

BNPP ventures out with tight regional deal BNP Paribas was set to price a 5.5 year senior unsecured deal with second and third tier accounts in Europe on Tuesday, the latest transaction to come with little or no new issue concession.

Don’t underestimate societal aspect of bail-in, says HSBC’s Flint Douglas Flint, group chairman of HSBC, told EuroWeek Bank Finance on Tuesday that the Cypriot banking crisis had highlighted the need for a debate on whether depositors should rank pari-passu with senior unsecured bondholders, taking into account the demographics of banks’ deposit bases.

High spread spells success for BofA Merrill Kanga Bank of America Merrill Lynch sold its first Kangaroo bond in nearly three years on Tuesday, pricing a five year dual tranche benchmark during the Sydney day. Investors rushed to pick up the paper, attracted by the high yields on offer and the issuer’s rarity in Australian dollars.

BofA Merrill continues Aussie interest Bank of America Merrill Lynch launched a new five and a quarter year dual tranche Kangaroo benchmark — its first in nearly three years — on Monday morning, expected to be priced during the Sydney day on Tuesday.

Chailease allocates and signs $120m loan Bankers working on Chailease Finance’s $120m three year loan have finalised allocations to the 12 banks that joined in syndication, and signed the deal on May 8.

Rabo goes aggressive with long-awaited 10 year Rabobank was on course to print a 10 year senior unsecured transaction through its secondary curve on Monday, as senior unsecured picked up in the bullish mood it finished last week.

Moroccan covered bond law likely to be ready by August Morocco’s government is set to establish Africa’s first covered bond regime, as it looks to promote mortgage lending in the face of rising demand for affordable housing. However, bond issues are likely to be local currency denominated, limiting the scope for investment from the traditional covered bond buy-side.

Bank capital pipeline builds but deluge yet to materialise Loss absorbing capital is set to become the word on every investor’s lips over the next few months — especially after last week’s market opening additional tier one trade from BBVA. Investors are hungrier than ever for paper, but while BBVA’s multi-trigger trade showed that issuers can structure deals to cover all regulatory bases, other borrowers may wait a couple of extra months to print.

Norway CB disappoints with covered refusal Analysts were left disappointed this week after Norway’s central bank refused to allow covered bond mortgage subsidiaries from using its lending facility.

Navarra to raise €500m backed by 623% OC Caja Rural de Navarra has picked joint leads for a roadshow and possible deal. Its announcement late on Wednesday came after Moody’s said that the prospective A3 rated €500m Cédulas was over-collateralised by 623%, a level that should allay any concerns over prospective negative equity in the underlying mortgage loans.

CRU shows Spanish demand despite pricing challenges The newly formed Cajas Rurales Unidas (CRU) accessed the capital markets for the first time this week, issuing a €500m three year Cédulas Hipotecarias.

HSBC Bank flies in popular sterling market HSBC Bank this week followed a string of non-UK financial institutions that have printed three year floating rate notes in sterling, and showed them just what a strong and rare name can do in its home currency by printing the biggest deal of the year in the format.

Pohjola prints inside curve in ‘best market of 2013’ The European senior unsecured FIG market is experiencing some of its best ever issuance conditions, demonstrated by the performance of Pohjola Bank’s €500m five year this week.

HSBC and Nordea lead Yankee bond rush Nordea Bank printed its biggest senior unsecured deal in more than a year as banking and financial names returned in force after last week’s lull.

Man sticks with exit consent buyback for LT2 Man Group has followed its buyback of 2015 senior bonds, completed last Thursday, with a tender for $232m of lower tier two debt due in 2017. Again, the issuer has decided to use an exit consent method — a tactic normally employed in distressed situations.

RBI continues Swiss sub success Raiffeisen Bank International sold subordinated Swiss franc debt on Monday, hooking private bank investors on the lookout for high yielding paper. The deal saw some follow-on demand on Tuesday, allowing a small increase on the same terms. The deal is the latest in a series of successful subordinated bonds aimed at this investor base.

JP Morgan and Morgan Stanley hit thriving Australian dollar market JP Morgan and Morgan Stanley sold Australian dollar debt on Wednesday, with the former selling a five year Kangaroo deal and the latter opting for a long five year in global format.

SpareBank 1 seizes on limited Swiss franc supply to sell long five year Norwegian savings bank SpareBank 1 SR-Bank made its inaugural appearance in Swiss francs on Monday morning, selling a long five year note.

Sberbank mandates for Basel III compliant tier two Sberbank has mandated BNP Paribas, JP Morgan, Sberbank CIB and UBS to arrange a dollar denominated Reg S/144A tier two Eurobond that will be Basel III-compliant. Since March 1, all Russian bank capital trades must reference the new framework in preparation for the country’s financial system moving over to Basel III.

Co-op Bank debt tanks on 'unacceptable' Moody’s downgrade, but contagion limited Moody’s decision to downgrade Co-op Bank’s senior and deposit ratings by six notches — making its outstanding paper sub-investment grade — left the issuer’s debt reeling in the secondary market on Friday.