Spain

Banco de Sabadell appeared to struggle to get much traction in the euro market on Wednesday, when it offered the first unsecured bond from a Spanish bank in more than three months.

The bumper IPO of Cepsa is likely going to give investors something different to look at when the market reopens in September with investors already excited by a number of new listings.

Market participants should not become complacent about the battles that are still taking place over the handling of the resolution of Banco Popular, because the outcome is likely to form the blueprint for what will happen when any large European bank fails in the future.

Transposing the European Commission’s covered bond directive into Spanish Cédulas law should result in multi-notch Cédulas upgrades, Fitch said. This could help allay concerns about other legal reforms that will lower collateral protection, and help boost confidence that the impending overhaul of the Spanish legal framework can be executed deftly.

Imperial Brands, the UK tobacco group, sold a €265m block in Spanish retail distribution firm Logista after market close on Monday night, in order to raise funds to reduce its debt.

Investment house Kartesia has provided a unitranche loan for Spanish fertiliser maker Fertiberia to replace part of its debt, as this type of lending becomes more popular in Europe.

WiZink Bank sold its buyout payment-in-kind (PIK) bonds in the euro high yield market this week, a rare opportunity for high yield investors given the slim volumes from the financial sector and Iberian issuers this year.

Värde Partners plans to fund the acquisition of Spanish consumer credit bank WiZink with payment in kind (PIK) notes, a type of high yield issuance that borrowers have barely used in the last 18 months.

Solaria, the Spanish solar energy company, sold a €96.8m block of shares to fund the development and execution of its photovoltaic projects in Spain and in order to continue broadening its portfolio of projects under development.

Spain’s Grupo Siro has signed a €240m loan with sustainable features, as green financing continues to make a path into the syndicated loan market.

Rating: Baa1/A-/A-

Sovereign, supranational and agency borrowers were out in force this week, but the second busiest week of the year for euro funding was notable for the lack of price tension on many deals.