Merrill Lynch is aiming to the close the order book on a high-yield bond sale tomorrow for Scottish energy company Melrose Resources, in what will be the first junk offering in Europe since the primary market closed in late July during the credit crisis.

Investor demand is said to be "building steadily" for the new issue after Merrill Lynch, the sole bookrunner, gave potential buyers initial price guidance of 10% to 10.25% earlier this week on the €250m ($357m) eight-year deal. Final execution of the sale will be on Friday.