BP PLC (BP) Monday launched its first euro-denominated bond since capping its leaking oil well in the Gulf of Mexico , as primary issuance picked up on a steady credit market environment.

The transaction from the U.K. energy heavyweight comes hard on the heels of last week's massively over-subscribed dollar deal. With the pricing due at 1400 GMT, final price guidance has come in much tighter than originally touted.

The deal will have a four- and seven-year tranche, both with a size of EUR1 billion. The four-year will price at 135 basis points over midswaps, while the seven-year deal is set to price at 160 basis points over midswaps. Both levels are about 15 basis points tighter than initial guidance stated earlier.

Meanwhile, bonds issued from the Middle East continued apace, with Saudi-based Islamic Development Bank, or IDB, planning a dollar-denominated, benchmark-sized sukuk. The bond follows last week's successful dollar deal from Dubai , and comes as the likes of Qatar Telecom and Qatar Islamic Bank also tapped bond investor demand for exposure to the region.

The roadshow for the deal runs from Oct. 12-20, with the deal launch scheduled to follow.

Sunrise Communications AG and France 's Societe Anonyme de Gestion de Stocks de Securite, or SAGESS, also planned investor meetings for proposed bonds.

However, the companies come from the opposite ends of the ratings spectrum, with Sunrise a high-yield name while SAGESS is rated triple-A.

There was also a split-rated company in the market, as Turkish financial institution Yapi ve Kredi Bankasi AS (YKBNK.IS) planned a dollar-denominated, benchmark-sized loan participation note. Yield guidance on the senior, unsecured transaction was set around 5.25%.

UniCredit SpA (UCG.MI) brought a EUR1 billion, seven-year covered bond, a type of debt that has proved very popular this year, especially in September. The deal will price at 112 basis points over midswaps.

The activity sprouted out of a relatively benign credit market, with the Markit iTraxx levels little changed since the open.

At 1300 GMT, the Markit iTraxx Crossover index, which investors can use to buy or sell credit default protection on a basket of 50 mostly sub-investment-grade European corporate borrowers, was at 597/501 basis points, five basis points tighter than at close Friday.

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