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EU readies €800bn debt programme but safe asset status in doubt

Supranationals & Agencies

EU readies €800bn debt programme but safe asset status in doubt

The European Commission says it is ready to pull the trigger on Next Generation EU — an €800bn debt programme designed to finance the bloc’s economic recovery from the coronavirus pandemic. Political hurdles remain but from a funding perspective the EU is raring to go. However, market participants warn that even with its colossal funding need, it may not fulfil ambitions of becoming a true eurozone safe asset, writes Lewis McLellan.

  • SLB fever sweeps FIG market after Berlin Hyp debut

    Senior Debt

    SLB fever sweeps FIG market after Berlin Hyp debut

    Banks are optimistic that sustainability-linked bonds have a bright future as part of their funding toolkits, after Berlin Hyp became the first financial institution to land a deal in the format this week. More trades are already on the way and market participants are stepping up their efforts to break down the remaining barriers for FIG borrowers.

  • ‘Russia’s Rubicon crossed’ after Biden sanctions

    Emerging Markets

    ‘Russia’s Rubicon crossed’ after Biden sanctions

    Equity and debt markets were fretting on Thursday over the implications of new US sanctions against Russia. A prohibition of US investment in Russian sovereign bonds marked an escalation in tensions, threatening sovereign borrowing costs. It could also damage Russian companies’ chances of funding in the capital markets, write Mariam Meskin and Sam Kerr.

  • EU eyes separate gas law, leaves harmful bioenergy in Taxonomy

    SRI / Green Bonds

    EU eyes separate gas law, leaves harmful bioenergy in Taxonomy

    The European Commission is set to put forward a new solution to the intense battle over the EU's sustainable finance Taxonomy, between green finance supporters and EU member states that want to safeguard their plans to use gas, GlobalCapital has learned. This would appear to involve leaving gas out of the Taxonomy, as environmentalists have demanded, and making a "separate legislative proposal" to deal with gas and nuclear power.

Keeping Tabs

  • Turning tough on Russia, government debt and M&A

    Turning tough on Russia, government debt and M&A

    This week in keeping tabs US president Joe Biden gets tough on Russia, a sceptic gives his views on M&A addiction, there is German hand-wringing about excessive debt and a look at counting the lockdown death toll. Then we revisit that the age old question: is passive investing Marxist?

  

  

People & Markets

  • BNP Paribas bankers in Spain leave for boutique firm

    BNP Paribas bankers in Spain leave for boutique firm

    A group of BNP Paribas bankers in Spain have jumped ship to join boutique firm Beka Finance, according to market sources. One person familiar with the situation said that the French bank will refill these roles in due course.

  • KNOC bond clashed with banks’ own climate policies, NGO charges

    KNOC bond clashed with banks’ own climate policies, NGO charges

    An environmental activist institute has argued that the bookrunners of a Korea National Oil Corp $700m bond priced on Tuesday are being inconsistent with their own climate policies, and might even be taking legal risks, because of the issuer's exposure to tar sands oil production in Canada.

  • JP Morgan names new EMEA equity syndicate heads

    JP Morgan names new EMEA equity syndicate heads

    JP Morgan has appointed two new co-heads of EMEA equity syndicate to replace Lorenzo Soler, who moved back to the US to run the bank’s Americas syndicate desk. One is an internal hire and the other joins from Deutsche Bank.

  

Southpaw
by David Rothnie

SRI / Green Bonds

Asia

  • Japan’s top credits endure Covid volatility

    Japanese issuers have just been through one of the most volatile, unpredictable years in decades. Although the impact of Covid-19 on capital markets was not as violent as the aftermath of the global financial crisis, huge questions about economic growth, trade and asset allocation meant it was arguably a more troubling period for issuers and investors alike. GlobalCapital talked to some of the country’s best-regarded issuers about how they navigated the market.

GlobalCapital China