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Friday, 19 April 2019

Pause for breath

IFR 2280 20 April to 26 April 2019

There have finally been enough IPOs in Europe to start forming a view on the market – to the extent that a coherent IPO market exists – but European floats take longer to settle than they once did and more of an aftermarket is needed to make a sensible assessment of this wave.

Top News

Saudi Arabian flag

Saudi warms up with US$1bn IPO

IFR 2280 20 April to 26 April 2019 By

Four years after Saudi Arabia opened up its stock exchange to international investors, mall operator Arabian Centres Company has launched the first IPO to seek international backing.

Segway Ninebot personal transportation robot

First CDR whirrs into view

IFR 2280 20 April to 26 April 2019 By ,

Ten months after regulators rushed out rules to attract domestic listings from China’s technology sector, the first overseas-domiciled company has filed to sell Chinese depositary receipts on Shanghai’s new tech board.

Co-op bank

Shareholders give Co-op leg-up on market return

IFR 2280 20 April to 26 April 2019 By

Co-operative Bank’s first bond sale since 2015 squeaked through last Wednesday, taking succour from shareholder support but also finding interest from new investors to buy into the fledgling turnaround story.

Eric Yuan, CEO of Zoom Video Communications poses for a photo after he took part in a bell ringing ceremony at the NASDAQ MarketSite in New York

Zoom Video rockets to premium pricing on IPO

IFR 2280 20 April to 26 April 2019 By

Zoom Video Communications, a customer-backed video collaboration software developer, found itself in the middle of an investor food fight that allowed it to achieve one of the highest-ever valuations on an IPO.

Euros

Direct lenders step in on tough deals

IFR 2280 20 April to 26 April 2019 By

Leveraged loan bankers are approaching direct lenders in a bid to sell down difficult deals as the distinction between syndicators and private money narrows.

Santander

Santander leaves investors guessing as it calls dollar AT1

IFR 2280 20 April to 26 April 2019 By

Banco Santander’s decision to call a US$1.5bn 6.375% Additional Tier 1 bond at the first opportunity, though not unexpected, has failed to provide much further insight into its refinancing strategy and instead kept investors guessing as to its next move.

China Securities Regulatory Commission headquarters

China pushes for CDS alongside bond issues

IFR 2280 20 April to 26 April 2019 By

Chinese regulators have asked securities firms to offer credit hedging tools alongside corporate bond sales from private sector issuers in the exchange market, according to people familiar with the guidance.

Cerberus Capital Management logo

Cerberus eyes German banking assets

IFR 2280 20 April to 26 April 2019 By

Cerberus could hold the key to unlocking the possible merger of Deutsche Bank and Commerzbank. If the transaction between the two lenders proceeds, the combined bank may have to raise up to €10bn of capital, if it is prevented from realising badwill on its inflated balance sheet.

China East Education, Frontage to bring IPOs in April

Education sector faces IPO test

IFR 2280 20 April to 26 April 2019 By

The Stock Exchange of Hong Kong has tightened its review of IPO applications from Chinese K-12 education companies because of policy uncertainty surrounding the sector, according to people familiar with the situation.

David Solomon, Goldman Sachs

Goldman sets out stall to do more with less

IFR 2280 20 April to 26 April 2019 By ,

Goldman Sachs plans to ramp up new technology, widen its team of bankers for smaller US companies and make further cuts in commodities and fixed income assets as part of an overhaul aiming to cut costs and lift returns.

Swissport airport workers

Bankers ready debt for Swissport

IFR 2280 20 April to 26 April 2019 By

Bankers are pitching debt financings of around €2bn to private equity firms that are approaching China’s HNA Group about a potential sale of Swiss cargo handling unit Swissport Group.

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People & Markets

Surging M&A fees save Q1 for US banks

IFR 2280 20 April to 26 April 2019

US banks pulled a rabbit out of their collective hat just in time for Easter, beating expectations for a lousy quarter in investment banking on the strength of buoyant advisory work for mergers and acquisitions.

Equity trading finally stalls as revenue falls 20%

IFR 2280 20 April to 26 April 2019

Equities trading has been a bright spot in bank trading groups during the last couple of years as debt trading has been in a funk, but that stalled in the first quarter as equities revenues fell more than 20% across the big US banks.

Lake moves in line to succeed Dimon

IFR 2280 20 April to 26 April 2019

JP Morgan last week shuffled the jobs of two of its most senior women executives, putting chief financial officer Marianne Lake in line to potentially succeed Jamie Dimon as boss when he chooses to step down.

Belt and braces: Overseas banks look for bigger slice of China-led BRI project

IFR 2280 20 April to 26 April 2019

As world leaders gather on the outskirts of Beijing for the second Belt and Road summit later this month, they could be forgiven for wondering what to make of the flagship initiative just over five years since it was first unveiled by Chinese President Xi Jinping.

UBS merges DCM, leveraged capital markets teams

IFR 2280 20 April to 26 April 2019

UBS is merging its debt capital markets and leveraged capital markets units into a single global entity, according to an internal memo obtained by LPC, a unit of Refinitiv.

    More from People & Markets

    Bonds

    Resimac prints third RMBS

    IFR 2280 20 April to 26 April 2019

    Australasian non-bank mortgage lender Resimac Group issued its third RMBS offering last Tuesday, the no-grow NZ$250m (US$170m) prime and non-conforming Resimac Versailles 2019-1.

    India: Vedanta showcases distribution

    IFR 2280 20 April to 26 April 2019

    Vedanta Resources was able to distribute a US$1bn dual-tranche bond issue across a variety of investors in different regions, despite aggressive pricing.

    India: Azure mandates banks for dollar bonds

    IFR 2280 20 April to 26 April 2019

    Azure Power Global has mandated Credit Suisse, Barclays, HSBC and JP Morgan for a potential US dollar bond offering, according to a source close to the plans.

    China: S&P cuts MIE ratings on bond exchange

    IFR 2280 20 April to 26 April 2019

    S&P has cut MIE Holdings’ long-term issuer credit ratings after the company completed a bond exchange offer that is expected to slash investor returns.

    China: Chengdu Tianfu New Area plans bonds

    IFR 2280 20 April to 26 April 2019

    Chengdu Tianfu New Area Investment Group, rated Baa3/BBB (Moody’s/Fitch), has mandated China International Capital Corporation and ICBC International as global coordinators, lead managers and bookrunners for a US dollar-denominated bond offering.

      More from Bonds

      Loans

      UBS merges DCM, leveraged capital markets teams

      IFR 2280 20 April to 26 April 2019 By

      UBS is merging its debt capital markets and leveraged capital markets units into a single global entity, according to an internal memo obtained by LPC, a unit of Refinitiv.

      Euros

      Direct lenders step in on tough deals

      IFR 2280 20 April to 26 April 2019 By

      Leveraged loan bankers are approaching direct lenders in a bid to sell down difficult deals as the distinction between syndicators and private money narrows.

      Hong Kong: Lee & Man Paper signs two loans

      IFR 2280 20 April to 26 April 2019

      Hong Kong-listed Lee & Man Paper Manufacturing has signed two five-year bullet term loans totalling HK$4bn.

      Hong Kong: Chow Tai Fook wraps HK$6bn loan

      IFR 2280 20 April to 26 April 2019

      Conglomerate Chow Tai Fook Enterprises has closed a HK$6bn-equivalent (US$769m) five-year term loan.

      Summi loses contact with chairman

      IFR 2280 20 April to 26 April 2019 By

      Lenders to beleaguered orange juice maker Summi (Group) Holdings face another setback after the Hong Kong-listed company announced on April 12 its inability to contact its chairman and CEO Sin Ke.

      China: Shagang seeks £800m

      IFR 2280 20 April to 26 April 2019

      Jiangsu Shagang Group, China’s largest privately owned steelmaker, is seeking a loan of about £800m to back its planned acquisition of an additional 24% stake in British data centre owner Global Switch Holdings, even as the latter prepares for an IPO.

      China: Formosa Plastics returns

      IFR 2280 20 April to 26 April 2019

      Taiwanese conglomerate Formosa Plastics Group has launched a US$421m-equivalent five-year facility, marking its return to the loan market shortly after it completed three deals totalling US$2bn.

      China: Zhengzhou Coal unit digs for refi

      IFR 2280 20 April to 26 April 2019

      SEG Automotive Germany, a subsidiary of Shanghai and Hong Kong-listed Zhengzhou Coal Mining Machinery Group, has launched a €300m three-year facility.

      More from Loans

      Equities

      China: Shenwan Hongyuan completes HK listing

      IFR 2280 20 April to 26 April 2019

      Chinese brokerage Shenwan Hongyuan Group has raised HK$9.08bn (US$1.16bn) from a Hong Kong listing.

      China: Two clear CSRC IPO hearing

      IFR 2280 20 April to 26 April 2019

      Shandong Yuanli Science and Technology and Hongta Securities have cleared a China Securities Regulatory Commission hearing for proposed Shanghai IPOs.

      China: Victall Railway files for Shanghai IPO

      IFR 2280 20 April to 26 April 2019

      Qingdao Victall Railway has filed to the China Securities Regulatory Commission for a proposed Shanghai IPO to raise Rmb1.2bn (US$179m).

      China: Lakala sets IPO price at Rmb33.28

      IFR 2280 20 April to 26 April 2019

      Lakala Payment, a Chinese third-party payment company, has set an IPO price of Rmb33.28 per share to raise Rmb1.3bn (US$194m) from a Shenzhen ChiNext IPO.

      China: Tianfeng Secs plans rights issue

      IFR 2280 20 April to 26 April 2019

      Shanghai-listed Tianfeng Securities aims to raise Rmb8bn (US$1.2bn) from a 3-for-10 rights issue.

      China: Poly Developments to list subsidary

      IFR 2280 20 April to 26 April 2019

      The board of China’s Poly Developments and Holdings Group has given the green light to list the company’s property management arm in Hong Kong, according to a company statement.

      China: Shareholders sell down meaty stake

      IFR 2280 20 April to 26 April 2019

      Four shareholders have raised HK$1.26bn (US$160m) from an upsized block trade in Cofco Meat Holdings.

      Australia: Life360 to list on ASX

      IFR 2280 20 April to 26 April 2019

      Family networking app operator Life360 is set to raise A$145m (US$104m) from an ASX IPO that could be Australia’s largest technology float in three years.

      More from Equities

      Petrotrin bondholders select financial advisor

      18 April 2019

      Holders of bonds issued by Trinidad Petroleum, or Petrotrin, have selected a financial adviser in response to the oil firm’s to exchange of existing bonds for a new longer-dated security.

      Auto leasing app Fair eyes debut ABS

      18 April 2019 By

      Softbank-backed online auto lease firm Fair is understood to be considering a debut securitization deal, the latest early stage online auto lender to target the ABS market for financing.

      IFR SNAPSHOT-Corporate primary quiet as holidays approach

      18 April 2019 By

      No deals are expected in the high-grade and high-yield corporate bond markets this Thursday as desks slowly retreat into holiday mode.

      Logo of Unibail-Rodamco

      Moody's threatens Unibail ratings cut

      18 April 2019 By

      Moody’s threatened to cut Unibail-Rodamco’s rating on Wednesday, citing uncertainties around the ability of the shopping mall operator to deleverage following last year’s US$16bn Westfield acquisition.

      A Senvion wind turbine

      Senvion creditors grant loan

      18 April 2019 By

      Senvion said late Thursday it had signed a loan agreement with creditors, providing liquidity to the cash-strapped company as it seeks to turn around its operations.

      Bristol-Myers Squibb logo is seen on an office building

      Bristol-Myers Squibb announces Celgene debt exchange

      18 April 2019 By

      Bristol-Myers Squibb on Wednesday announced a debt exchange for up to US$19.85bn across 19 Celgene bonds.

      Earthquake

      Palomar CEO sees growth in aftermath of IPO

      18 April 2019 By ,

      Palomar Holdings, a specialty insurer focused on protecting against earthquakes, defied investor scepticism, at least initially, by raising US$84m from its IPO Tuesday.

      A Qualcomm sign

      Qualcomm's pact with Apple pushes their bonds tighter

      17 April 2019 By

      Qualcomm and Apple bonds were tightening on Wednesday after the two companies agreed to settle a bitter two-year legal battle over an IP licensing dispute.

      Logo of inflight Wi-Fi provider Gogo

      Triple C borrowers tap quiet high-yield market

      17 April 2019 By

      A new burst of momentum in the US high-yield bond rally in the last week has helped several riskier borrowers tap a quiet primary market.

      Conn's store logo

      Conn's shops cheaper debt in latest ABS

      17 April 2019 By

      Appliance chain store Conn’s returned to the ABS market for the first time this year with a US$381.79m consumer loan deal, paying the same spread on the senior notes as its last offering, but bringing down the cost of junior debt.

      Movil

      America Movil eyes more bond forays after dollar bond: CFO

      17 April 2019 By

      Mexico-based telecoms company America Movil is eyeing more market forays this year, after raising US$2.25bn in its first dollar deal in over five years, CFO Carlos Garcia Moreno told IFR on Wednesday.

      Information for stock in Morgan Stanley is displayed above the floor of the New York Stock Exchange

      Morgan Stanley FICC discipline holds

      17 April 2019 By

      Morgan Stanley saw revenue in the first quarter drop in every segment of trading and investment banking, from equity and fixed income trading to M&A advisory and underwriting, but still managed to beat analysts’ lowered expectations.

      Credit Suisse

      MOVES-Credit Suisse makes nine new hires

      17 April 2019 By

      Credit Suisse has made a series of hires from banks across Wall Street as it attempts to beef up investment banking and trading in New York and London.

      A woman passes a cash machine at a Co-Operative Bank branch in central London

      Shareholders give Co-op leg-up for bond market return

      17 April 2019 By

      The Co-operative Bank’s first bond sale since 2015 squeaked through on Wednesday, taking succour from shareholder support but also finding interest from new investors to buy into the fledgling turnaround story.

      Push for US housing reform expected under new FHFA leadership

      Push for US housing reform expected under new FHFA leadership

      17 April 2019 By

      The swearing in of new leadership at the Federal Housing Finance Agency this week has prompted a new round of debate over the steps that could be taken to reform US housing finance.

      Europcar logo

      Europcar slashes costs with sub refi

      17 April 2019 By

      Europcar successfully honed in on the rally in its debt to nail down much cheaper funding costs, the latest issuer to do so as yields continue their downward journey.

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      Special Reports and Roundtables

      IFR Colombia Roundtable 2019 IFR+Colombia+Roundtable+2019+Homepage+image
      IFR held its first Colombia Capital Markets Roundtable on February 8 in Bogotá, bringing together high-profile issuers, borrowers and bankers to discuss the prospects for a country that looks set for renewed growth this year.

      IFR Awards 2018 IFR+Awards+2018+Homepage+Cover
      So here’s a funny thing. The one asset class that the great and good of the global economy seems to be worried about – leveraged loans – is just about the only one that has made money for investors in 2018.

      ****ING hell

      IFR 2280 20 April to 26 April 2019

      COMMERZBANK IS STUCK between a rock and a hard place. The rock is Deutsche Bank, aka Rocky McRockface for its plummeting revenues and anaemic RoE, while the hard place is UniCredit, with its exposure to Italian loans.