Spain

Instituto de Crédito Oficial (Ico) and Investitionsbank Berlin (IBB) found strong demand in the short end of the euro curve on Wednesday, which SSA bankers are calling the new sweet spot, despite the deeply negative yields.

Instituto de Crédito Oficial (Ico) held investor calls on Tuesday ahead of its return to the social bond market to complete its funding needs for the year.

The IPO of Zero–E, a Spanish renewable energy firm, has been delayed until next year, as ACS, the company’s parent, explores M&A options, say sources close to the deal.

Cellnex, the Spanish wireless telecommunications company, is getting tremendous traction in investor meetings for its €2.5bn rights issue to fund a transformational UK acquisition.

The branding may be on the way out, but there are plenty of reasons to be encouraged about the potential for real progress in the next phase of the Capital Markets Union.

Santander Consumer Bank was more than three times subscribed for a tightly priced €500m five year preferred senior bond this week — its second offering in the asset class.

Cellnex, the Spanish wireless telecommunications company, has agreed a deal to acquire the telecoms division of Arqiva for £2bn and is undertaking a €2.5bn rights issue to help fund the transaction.

Banco Santander hit screens this week to sell its first green bond. The deal attracted orders more than five times its €1bn size.

Rating: A2/A+/A-

Banco BPM and Abanca made use of favourable issuance conditions this week to beef up their capital buffers. The Italian lender priced the 10 year non-call five deal at a 4.25% coupon and the Spanish issuer priced its 10.5 year non-call 5.5 year bond at 4.625%.

Lecta has reached an ‘in-principle agreement’ with its creditors for a recapitalisation, which will cut the principal of its €600m senior secured notes by €380m-€400m in a debt-for-equity swap. The Barcelona-based paper company’s proposed recapitalisation qualifies as a distressed exchange, said Moody’s, and it slashed Lecta’s rating from Caa1 to Caa3.

Abanca Corporación Bancaria returned to the euro bond market on Thursday for its second tier two of the year. The Spanish lender was able to tighten pricing for its €300m deal by 50bp, helped by an order book that was nearly four times subscribed.