New Issuance

New Issuance Benelux Market

New Issuance - Market observation per 23 August 2021 -

Little activity on European primary markets

  • As usual, August ’21 was quiet in terms of new issuance in Europe
  • Although the Euro bond market has experienced only 13 zero-sales days in 2021, compared to 23 zero-sales days at the same point in 2020, the majority of zero-sales days arose in August ’21, counting six zero-sales days in total
  • Concerns about the global growth outlook and the prospect that the Fed will scale back stimulus impacted summer months. Mid-August, Fed minutes showed the US central bank is less hawkish than markets has expected, as it will continue its asset purchase program
  • Nevertheless, at the end of last week, no new mandates were announced in the Euro bond market

Busy September ahead for corporates to take advantage of positive terms

  • Investors expect a pick-up in activity early-September as summer holidays in Europe and the UK have ended. September is usually one of the busiest months of the year in terms of new issuance
  • Corporates with the ambition to lower funding costs may be the first issuers when the market reopens. Banks and investors expect opportunistic issuers to go to the market and utilize the positive backdrop. These issuers will take advantage of funding costs that fell to a record low in August ’21
  • September ’21 will be busy with sovereign debt issuances of Spain, the UK and Germany as well. Sovereign new issuance will be in the form of green bonds, further boosting the market for ESG and green finance