Rabobank

European insurance companies have limited refinancing needs in 2020, but analysts say that the sector will take advantage of market conditions to clean up capital structures for Solvency II. French insurance firm Scor this week was looking to beat the rush with a tap of a restricted tier one (RT1) bond.

Bank capital experts were taken aback this week after UniCredit suggested that it would use subordinated debt to count towards its Pillar 2 capital requirements — a development that, if copied, could lead to a surge in the supply of additional tier one (AT1) and tier two bonds. It could also help financial institutions offset the negative capital impact of Basel IV. Tyler Davies reports.

Investors in the financial institutions bond market have not had much chance to invest in UK credit this year, especially in the euro market in light of the political uncertainty in the country. Much of the supply next year will depend on the UK general election results next week.

Grenke on Monday announced new plans for additional tier one (AT1) bond on Monday. The bank and leasing company could be looking at a small issuance window for its offering, with DCM officials predicting an early end to the year for deal flow.

Financial institutions bond bankers expect that new deal flow will come to a standstill in the primary market at the end of next week, as investors close the lid on an agreeable year for returns.

Commodities company Mercuria has closed its annual borrowing at a size of $1.2bn after 24 banks joining the deal during general syndication.

Financial institutions are rushing to sell new deals in the euro market, fearful that the window for issuance will close after Thanksgiving in the US next week.

Rabobank has promoted a senior member of its loan syndication team to become its new head of markets in Europe.

Rating: Aaa/AAA/AAA

Bank Nederlandse Gemeenten and Kommuninvest followed in the footsteps of KfW as they included their environmental, social and governance (ESG) ratings in the terms sheets for socially responsible bonds this week, with the latter selling the largest single-issue green bond from a Nordic public sector borrower.

Del Canto joins Berman at agora — O'Higgins to retire from ICBC Standard — Miller becomes new IBCM head at Credit Suisse

La Banque Postale has suggested that issuers of additional tier one (AT1) capital should drop the tradition of making large pricing steps in the euro market, after setting a very low coupon for its debut in the asset class this week.