An eleventh-hour deal between Greece and its creditors to unlock desperately needed funds for the government and narrowly avoid default will not end the acute liquidity and solvency crisis being faced by the country’s banks.
Kurdistan is hoping to push the investment frontiers with a debut bond offering after meeting investors in London last week. The government, which represents the semi-autonomous region of northern Iraq, is seeking to raise about US$500m.
Despite continuing to insist its bondholders take a haircut, Ukraine may be better off acceding to creditors’ demands and extending bond maturities without touching the instruments’ principal.
Bank of China underlined the scale of China’s ambitions for what it bills as a “new Silk Road” last week with a US$4bn multi-currency bond offering to fund infrastructure projects linking Asia and Europe.
Several US-listed Chinese companies are planning to go private, a trend that is expected to provide big business for mainland banks as issuers restructure and look to relist closer to home.
Mongolia broke new ground last week as the first high-yield sovereign to price a Dim Sum bond, but some market participants said the offering’s small size and investor reception were disappointing.
The US investment-grade bond market saw the highest issuance volume in a quarter last week, setting the asset class on course for another record year.
Investors piled into the US$10bn bond deal backing HJ Heinz’s US$46bn merger with Kraft Foods last Tuesday, helping the company pay hardly any new-issue concession on the deal, which was followed the day after by smaller tranches in euros and sterling.