Companies Lead Charge in Resurgent European Bond Market

By Ben Edwards

France Telecom SA and Heineken NV were among a rush of companies raising funds in the European primary bond market Tuesday as uncertainty caused by the Cypriot bailout subsided.

Despite the relative lack of corporate bond deals issued in the past week, Heineken ditched plans to sell the 13-year tranche of its proposed two-part bond due to insufficient demand.

That follows Polish broadcaster TVN SA's decision last Friday to shelve plans for a 485 million euro ($628.8 million) high-yield bond, citing instability sparked by the furor over Cyprus.

Sentiment was more upbeat Tuesday, with the indexes of European corporate credit default swaps both trading tighter, according to Markit.

Here's a rundown of how the CDS market is performing and who's selling bonds Tuesday:

CDS: 

iTraxx Europe index: 2 basis points tighter at 121/121 bps

iTraxx Crossover index: 4 bps tighter at 475/477 bps

NEW ISSUES: 

France Telecom sold a EUR750 million, 6.5-year bond, paying a coupon of 1.875% and a spread of 80 basis points over midswaps.

Heineken sold a EUR500 million, eight-year bond, paying a coupon of 2% and a spread of 65 basis points over midswaps.

Belgian electricity power transmission firm Elia System Operator SA is seeking to price a EUR550 million, 15-year bond at 117 basis points over midswaps. It is also seeking to price a EUR200 million 20-year bond to yield 3.5%.

Luxembourg-based real estate fund Goodman European Logistics Fund is seeking to price a EUR500 million bond at 225 basis points over midswaps.

German chemical company Evonik Industries AG is selling a EUR500 million, seven-year bond.

Unrated Danish shipping company AP Moller-Maersk A/S sold a 300 million pound ($456.4 million), 12-year bond, paying a coupon of 4% and a spread of 195 basis points over the 5% 2025 gilt.

Dutch insurance provider Achmea BV is seeking to sell a 30-year euro hybrid bond. Suggested pricing was for the bond to yield in the area of 6.25%.

France sold a EUR4.5 billion bond, maturing May 2045. The notes will carry a coupon of 3.25%.

Croatia will price its $1.5 billion, 10-year bond to yield 5.625%.

--Art Patnaude, Sarka Halas, Serena Ruffoni and Carol Dean contributed to this item.

Write to Ben Edwards at [e-mail]