The corporate bond market has gotten off to a heady start after the summer holidays, with several issuers tapping the market in the early days of September.Notable among the issues coming to market are two deals led by BBVA, one for Italy's ENEL and another for Spain's Madrileña de Gas. Both met with strong appetite from international institutional investors.

ENEL issued subordinated hybrid capital instruments, structured into two tranches:the first denominated in euros and the second, a smaller-sized sterling-denominated tranche.This is the first bond of this nature underwritten by BBVA Corporate & Investment Banking for a southern European issuer.The main tranche amounted to €1.25 billion. The securities are due 2074 and pay a fixed coupon of 6.5% for the first five years, implying a spread over the swaps curve of 534 basis points.The issuer can call thesecurities in ahead of maturity any time from 2019. If it does not do so, the securities will pay an additional 25 basis points at the 2024 maturity and another 75 basis points at that of 2039.

Demand for the issue totalled €6.5 billion. The book stood out for the geographic diversity of the investor base: demand was concentrated in the UK and Ireland (30%), France (13%) and Benelux (9%).By investor type, asset managers made up the lion's share of the book (78%), followed by banks (9%) and insurers (8%).