Though typically during the summer months the European market slows for the sunshine and vacation, the downpour of deals is lasting well into July. By Wednesday last week, the market had seen at least E6 billion (US$ 6.7 billion) in new transactions.
Among the new transactions was a billfold of U.K.-denominated issues that added some hefty volume to the already rapidly growing whole business sector. On the tail of the Southern Water deal that priced last week was another water securitization led by Royal Bank of Scotland (RBS). The GBP185 million (US$293 million) single tranche offering from the bank's Artesian Finance II conduit is backed by a Financial Security Assurance guarantee and is being marketed with price talks in the Gilts plus 56 basis point area, said bank sources.