DZ Bank

Covered bond issuers from Europe’s core accessed the market across a range of intermediate tenors this week with LBBW, Compagnie de Financement Foncier (CFF) and Helaba issuing some of their largest deals in years.

Fresenius, the German kidney dialysis group, has closed its second Schuldschein issue of the year, growing the deal from the launch size of €400m to €1bn, which brings the its total issuance in the market this year to €1.38bn.

Appetite for 30 year callable zeroes in dollars has been bolstered by Donald Trump’s victory in the US elections and the resultant hike in bond yields around the world.

Covered bond supply surged to its highest levels in seven months this week, as issuers scrambled to raise funding before the end of the year and costs soar even further.

Caja Rural Navarra pushed ahead with its seven year Cédulas Hipotecarias backed by environmental and social governance assets on Wednesday, even though it knew the market was likely to be unreceptive.

German healthcare group Fresenius launched a €400m Schuldschein on Friday and had already received commitments in excess of the launch size by Monday afternoon, as investors lapped up the favoured credit.

BHP Billiton’s partnership with the IFC for the world’s first ‘forests’ bond has inspired others to look at similar projects.

As the end of 2016 approaches, borrowers are turning to the green market for their remaining funding, with a pair of SSA borrowers returning to the syndicated market for socially responsible investment products on Thursday.

Public sector borrowers have hardly skipped a beat in the wake of Donald Trump’s election victory, getting back on track with an NRW.Bank green bond mandate hitting screens on Wednesday.

Caja Rural Navarra is planning the first green covered bond of the year. It follows a trio of covered bonds issued by Australian banks and the first transaction to be issued from Nordea in more than a year.

Caja Rural Navarra has mandated leads to roadshow an environmental and social governance (ESG) Cédulas Hipotecarias with an intermediate maturity.

Norddeutsche Landesbank (NordLB) and Deutsche Genossenschafts-Hypothekenbank (DG Hyp) issued tightly priced German Pfandbriefe that benefitted from a rise in yields this week.