European banks once again dominate the European primary bond market Monday, as they rush their funding plans forward, taking advantage of the very buoyant market conditions of January. Monday saw a total of five banks selling bonds in the market.
The high yield market also very active, with two deals announcements in one day, both from mid-sized companies at their first venture in international bond markets. This brings the total of new deals in the category at 13 in the year-to-date.
With the U.S. closed for Martin Luther King Day, focus will be on the forthcoming Eurogroup meeting in Thursday, with banking union, Cyprus aid and the appointment of the new Eurogroup head to be discussed.
Here's a rundown of today's new bonds, and how the CDS market stands.
CDS:
Europe: 1 BP tighter at 103 BPs
Crossover: 5 BPs tighter at 419 BPs
NEW ISSUES
FINANCIALS:
French lender Banque Federative du Credit Mutuel will price two-year floating-rate notes denominated in euros.
Belgian lender Belfius Bank, formerly Dexia Bank Belgium, Monday will price an EUR500 million($665.9 million), 10-year covered bond.
Spanish lender Banco Santander (SAN) is planning to sell five-year covered bonds denominated in euros. The deal is rated A3 by Moody's Investors Service Inc.
Italian lender Banco Popolare S.C. (BP.MI) is selling a euro-denominated three-year senior unsecured bond. Ratings are Baa3 from Moody's, BBB- from Standard & Poor's Corp. and BBB from Fitch Ratings.
DG Hypothekenbank, a German lender, plans to issue a 500 million euro seven-year covered bond.
CORPORATES
Spanish utility company Iberdrola (IBE.MC) plans a euro-denominated eight-year bond. Ratings are Baa1 from Moody's, BBB from S&P and BBB+ from Fitch.
General Electric Capital Corp., the financing unit of General Electric Corp. (GE), Monday is selling a dollar-denominated bond. The issuer is rated A1 by Moody's and AA+ by S&P.
COMING UP:
HIGH YIELD
Spanish forest product company Ence Energia y Celulosa (ENC.MC) plans a 250 million euro ($333 million) seven-year high-yield bond. Moody's gave the company a Ba3 rating, and a B1 rating to the bond. S&P gave the company a BB rating.
Zobele Group, an Italian provider of household cleaning products, plans to issue its inaugural 180 million euro ($240 million) high-yield bond, it said Monday.
Expected ratings are B2 from Moody's and B from S&P.
Both bonds are expected to be priced toward the end of the week.
(Art Patnaude and Ben Edwards in London contributed to this item.)
Write to Serena Ruffoni at serena.ruffoni@dowjones.com
