Merrill Lynch's equity capital markets team kicked off a busy day with the launch of a €500m ($567m) convertible bond from 3i Group, the UK-listed private equity company, as well as wrapping up the flotation of Yell, the UK directories business.

Merrill and Goldman Sachs are joint bookrunners of Yell's revived initial public offering. The company is due to start trading on the London Stock Exchange on Thursday. Market sources said the deal is five times covered and likely to price at 285p, in the upper half of the bookbuilding range which is between 250p and 300p.