Summer finally arrived this week, just when we were all back at work and the kids back at school. Much to the surprise of most of the domestic holidaying population of the UK, the Met Office announced that 2021 was on course to be one of the top 10 hottest on record (records began in 1872 in case you were wondering). It certainly didn’t feel that way other than for a scorching week or so in July, but we digress.
As ever, August was a relatively quiet month in the public markets, particularly after a late July period which unusually saw a sterling transaction for Northern Powergrid being pulled as a result of weak investor demand, at least at the levels perceived by the issuer and its bookrunners as representing fair value. The deal was brought to the market on the back of a £250m 2036 issue from Metropolitan Thames Valley, which also appears to have run into some degree of investor fatigue ahead of the August break. The deal priced in line with the initial price talk of 115bps whereas similar transactions in previous weeks and months saw considerable tightening from IPTs