Market News

By Ronan Martin

(Bloomberg) -- A record number of borrowers are selling bonds in Europe on Tuesday, returning from the holidays to take advantage of spreads that are near the tightest in three years. 

There are 28 issuers looking to raise at least €30.4 billion ($31.7 billion), according to data compiled by Bloomberg, though that amount is likely to grow throughout the day. That’s the most borrowers ever in a single day, according to the data, which goes back a decade.

Europe’s primary bond market is just getting under way in earnest on Tuesday, with many investors taking last week off for New Year’s and some celebrating the Epiphany on Monday. Following a record year of new issuance in 2024, borrowers are flocking to the market again in part because spreads – the compensation that investors demand over a benchmark rate – are near their tightest since early 2022.

“The way the calendar fell this year means that a lot of issuance has been pushed into this holiday–shortened week,” said Marco Baldini, global head of investment-grade syndicate at Barclays Plc. “But fortunately, investors are very cash-rich and have made room for new issues.”

Banks including Barclays Plc, BPCE SA, Natwest Markets Plc, Nationwide, Commerzbank AG are selling new deals. Nestle SA is seeking an expected €1 billion from a seven-year offering as well as a rare 20-year issue. Renault SA’s financing company is seeking a three-year deal and Enel SpA is offering a two-part hybrid bond.

Companies tapped the market early this year, getting ahead of earnings blackout windows starting later this month. 

Meanwhile, Hungary, Slovenia and Belgium launched sales of government bonds, while Chile is seeking a euro-denominated social bond.

Further deals are in the pipeline: German airline Deutsche Lufthansa AG and chemicals manufacturer Evonik Industries AG have already put out mandates for offerings in the coming days.

--With assistance from 'Tofe Ayeni, Colin Keatinge, Hannah Benjamin-Cook, Olga Voitova and Paul Cohen.