Portugal's equity capital markets appear to have brushed off bearish sentiment afflicting the rest of Europe, with this morning's announcement of a $1bn (€679m) convertible bond and a multi billion initial public offering from the country.

Banco Espirito Santo, the country's third biggest bank, will sell $1bn worth of bonds exchangeable into the stock of rival Banco Bradesco, according to Reuters. The convertible bond, led by Goldman Sachs, Morgan Stanley and Espirito Santo's investment banking unit, are due in 2011 and will pay a coupon of 0.75% to 1.25%.