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Friday, 19 October 2018

IFR Awards 2018 logo

IFR Awards 2018: Call for entries

We invite banks to pitch now for the IFR Awards 2018. The IFR Awards Dinner will take place on the evening of Tuesday January 29 2019 in the presence of HRH the Princess Royal, patron of Save the Children. Banks, advisers and issuers wishing to submit pitches should do so by October 15 2018.

Hail to the chief

IFR 2256 20 October to 26 October 2018

Another cash-burning company – this time Uber – has pulled off a junk bond sale. But it’s not necessarily a sign that the high-yield market is bonkers.

Top News

Uber

Uber's quiet ride into bond market paves way for IPO

IFR 2256 20 October to 26 October 2018 By ,

Ride-hailing service Uber Technologies saw success with its debut bond deal, attracting more than 50 investors to the deal that some see as another stepping stone to going public.

Disney bonds

Disney surprises market with early debt exchange

IFR 2256 20 October to 26 October 2018 By

Media giant Walt Disney caused a stir in the market with a complex debt exchange that might have left investors holding illiquid debt for months if they had not pushed back.

A Turkish flag is pictured on a boat with the Bosphorus bridge in the background

Turkey chooses cautious comeback

IFR 2256 20 October to 26 October 2018 By

Turkey passed a major test with its comeback trade to the international bond markets on Tuesday, though bankers were puzzled by the choice of a five-year tenor, which was seen as defensive.

An Italian Army parachutist hoists Italian flag during the Republic Day military parade in Rome

Italy stays at home as volatility flares

IFR 2256 20 October to 26 October 2018 By ,

The Republic of Italy turned to the safety of its domestic retail market to raise funding last week, as the volatility that has stalked markets for weeks showed little sign of letting up.

Berkshire Hathaway

StoneCo's IPO gets Buffett boost

IFR 2256 20 October to 26 October 2018 By

Warren Buffett’s Berkshire Hathaway will take nearly one-third of the shares offered as part of fast-growing Brazilian payments processor StoneCo’s US$1.1bn Nasdaq IPO. The anchor order has shored up the deal amid signs that the US new issue window may be closing.

Saudi Aramco

Aramco loan on ice amid Saudi backlash

IFR 2256 20 October to 26 October 2018 By , ,

A US$50bn-$70bn loan to back oil and gas giant Saudi Aramco’s purchase of a stake in Sabic is expected to be put on ice after the disappearance – and apparent murder – of a Saudi journalist erupted into a political row and hit the investment climate in the kingdom.

Kazatomprom.jpg

EM IPOs try their luck

IFR 2256 20 October to 26 October 2018 By

Emerging market companies now dominate live EMEA IPOs as issuers in developed markets have largely postponed flotation plans amid difficult markets. The high proportion of EM deals is unusual as such transactions typically have the lowest chance of success in periods of volatility.

A view shows the Standard & Poor's building in New York's financial district.

S&P flags 'Titanic' LGFV risks

IFR 2256 20 October to 26 October 2018 By

Offshore bond supply from Chinese local government financing vehicles continued to ramp up last week, despite a warning of rising default risks in the sector from global rating agency S&P.

People walk past a major branch of HSBC at the financial Central district in Hong Kong, China.

HSBC ponders China listing – again

IFR 2256 20 October to 26 October 2018 By

HSBC is considering issuing Chinese depositary receipts through the Shanghai-London Connect scheme, potentially making it the first company to issue CDRs under the new trading link as regulators gear up for its launch by year-end.

IFR Magazine Top News in Full (subscription required)

People & Markets

Goldman, Morgan Stanley take the cake

IFR 2256 20 October to 26 October 2018

Investment banking revenue was flat across the five largest US banks in the third quarter, but beneath the calm top-line number Goldman Sachs and Morgan Stanley outperformed rivals to win market share.

Despite stumble, FICC on course to beat 2017

IFR 2256 20 October to 26 October 2018

Fixed income trading is on course for a better year than 2017 across the five largest US banks despite a weak performance in the third quarter.

Wells Fargo opts for Paris as France woos traders

IFR 2256 20 October to 26 October 2018

US bank Wells Fargo has applied for an investment firm licence from the French regulator to create a Paris hub for its investment banking and capital markets activity in the European Union after Brexit.

Hennebry leaves Deutsche to run Santander DCM

IFR 2256 20 October to 26 October 2018

Santander has hired Conor Hennebry to head its European debt capital markets business, according to market sources, the latest in a string of hires by the Spanish lender.

Stop 'window dressing' leverage ratios, banks told

IFR 2256 20 October to 26 October 2018

Banks have been warned not to “window dress” their leverage ratios – or manipulate figures at the end of the quarter to indicate they have a higher ratio than usual.

    More from People & Markets

    Bonds

    Graft case rocks Lippo Karawaci

    IFR 2256 20 October to 26 October 2018

    Lippo Karawaci’s offshore bonds sold off after Indonesia’s anti-corruption agency said that company officials had been detained in connection with an alleged bribery case.

    Malaysia: Politics spooks bonds

    IFR 2256 20 October to 26 October 2018

    Uncertainty over the fate of big infrastructure projects sponsored by Malaysia’s last government is holding back domestic bond issues as the new administration of Prime Minister Mahathir Mohamad grapples to rein in M$1trn (US$243.9bn) of federal debt.

    India: Stability lures back Indian issuers

    IFR 2256 20 October to 26 October 2018

    Top-rated Indian issuers such as Reliance Industries and Housing Development Finance Corp returned to the domestic bond market this month, taking advantage of renewed stability following coordinated efforts from the government and central bank to settle the market.

    Hordes snap up DBM's solo bond

    IFR 2256 20 October to 26 October 2018

    Development Bank of Mongolia drew a blowout book for its first offshore bond offering without a government guarantee, reflecting solid investor confidence in the country’s economic reforms.

    Resimac markets prime RMBS

    IFR 2256 20 October to 26 October 2018

    Resimac has mandated Citigroup, NAB and Westpac to market a potential dual-currency prime RMBS issue, Resimac Premier 2018-2, comprising Australian and US dollar tranches in 144A format.

      More from Bonds

      Loans

      A Hong Kong dollar coin is seen in this illustration photo May.

      Rising Hibor pressures lenders

      IFR 2256 20 October to 26 October 2018 By , Apple Lam

      Higher Hong Kong interbank rates are curbing banks’ appetite to lend and boosting interest margins on Hong Kong dollar loans amid fears of a potential liquidity crunch.

      Saudi Aramco

      Aramco loan on ice amid Saudi backlash

      IFR 2256 20 October to 26 October 2018 By , ,

      A US$50bn-$70bn loan to back oil and gas giant Saudi Aramco’s purchase of a stake in Sabic is expected to be put on ice after the disappearance – and apparent murder – of a Saudi journalist erupted into a political row and hit the investment climate in the kingdom.

      Hong Kong: Minmetals Land obtains HK$3.5bn

      IFR 2256 20 October to 26 October 2018

      Hong Kong-listed Minmetals Land has self-arranged a HK$3.5bn (US$449m) four-year club loan.

      Hong Kong: Pricing out for Huafa club

      IFR 2256 20 October to 26 October 2018

      A HK$1bn (US$128m) three-year club term loan for Zhuhai Huafa Group is offering an interest margin of 208bp over Hibor and an upfront fee of 138bp.

      China: SPIC extends bridge maturity

      IFR 2256 20 October to 26 October 2018

      State Power Investment Corp has secured approval from all lenders to extend the maturity of a US$400m one-year bridge loan, winning itself more time to work on a bond issue to refinance the loan.

      Elivie completes €360m refi

      IFR 2256 20 October to 26 October 2018

      French healthcare company Elivie has finalised a €360m loan to refinance its existing unitranche facility.

      Germany: Bechtle nets debut €300m SSD

      IFR 2256 20 October to 26 October 2018

      IT services provider Bechtle has placed a debut €300m Schuldscheindarlehen via BayernLB, Commerzbank and LBBW.

      TDC to slash leverage

      IFR 2256 20 October to 26 October 2018

      Danish telecoms group TDC intends to pre-pay around DKr15bn-equivalent (US$2.3bn) of its existing Term Loan B facilities, including the entire €1.2bn-equivalent US dollar-denominated tranche.

      More from Loans

      Equities

      Malaysian investors play chicken

      IFR 2256 20 October to 26 October 2018

      The Malaysian franchisee of KFC and one of South-East Asia’s largest poultry producers are targeting IPOs at local institutions early next year, aware that foreign investors might chicken out in the current volatile market environment.

      A man cycles past a delivery truck containing crates of San Miguel in Sta Cruz, Manila in Philippines.

      San Miguel pares follow-on target

      IFR 2256 20 October to 26 October 2018

      Weak emerging markets and liquidity concerns have prevented San Miguel’s sale of shares in subsidiary San Miguel Food and Beverage from becoming the largest ever equity capital market transaction in the Philippines.

      Sebi removes restrictions on Bandhan

      IFR 2256 20 October to 26 October 2018

      The Securities and Exchange Board of India has removed share sale restrictions on Bandhan Bank and its main shareholder, paving the way for an offer for sale that could total US$3bn.

      China: Niu trims IPO size and price

      IFR 2256 20 October to 26 October 2018

      Electric scooter maker Niu Technologies has raised US$63m from a Nasdaq IPO after cutting by 16% the number of American depositary shares on offer to 7m, from 8.3m.

      China: Two cleared for A-share IPOs

      IFR 2256 20 October to 26 October 2018

      Two Chinese IPO candidates, Xinjiang Communications Construction Group and Yusys Technologies, have received approval from the country’s securities regulator to raise up to a combined Rmb900m (US$130m) from A-share IPOs.

      China: Innovent Biologics launches HK IPO

      IFR 2256 20 October to 26 October 2018

      Biopharmaceutical company Innovent Biologics has started bookbuilding for a Hong Kong IPO of up to HK$3.3bn (US$422m).

      China: Qingdao Haier completes Frankfurt listing

      IFR 2256 20 October to 26 October 2018

      Shanghai-listed Qingdao Haier priced its German D-share IPO on Friday at €1.05, after revising the price range to €1.00–€1.21 per share the previous day. Original guidance was €1.00–€1.50.

      Australia: PEXA aims for December ASX IPO

      IFR 2256 20 October to 26 October 2018

      Property Exchange Australia (PEXA) is aiming to list on the ASX in December after securing board approval, a person with knowledge of the float has said.

      More from Equities

      The signage at the main gate of The Walt Disney Co. is pictured in Burbank, California

      Disney surprises market with early debt exchange

      19 October 2018 By

      Media giant Walt Disney caused a stir in the market with a complex debt exchange that might have left investors holding illiquid debt for months if they had not pushed back.

      Chile's Falabella taps investors for online expansion

      19 October 2018 By

      Falabella raised roughly US$550m Thursday in a capital raise that the Chilean retailer will used to fund its acquisition of online retailer Linio and other growth initiatives.

      Mexico

      Investors push back on Mifel IPO in rough week for markets

      19 October 2018 By

      In another blow to the Mexican equity markets, Banca Mifel was forced to shut down its IPO on Wednesday amid an increasingly tough market for issuers.

      IFR SNAPSHOT-Hectic week ends on a quiet note; next week tapers

      19 October 2018 By

      Volatility dominated the week, with equity market gyrations jarring all financial sectors.

      DIA logo is seen at its supermarket in central Madrid

      Downgrades leave Spanish retailer in DIA straits

      19 October 2018 By

      The corporate bond market may fret about the prospect of Triple B downgrades when economic growth slows, but DIA has ironically been pushed into junk territory on the back of Spain’s recovery.

      Italian flag waves in front of The "Altare della Patria"

      Piovan opens flat to pricing on Milan debut

      19 October 2018 By

      Shares in Italian plastics industry supplier Piovan held firm on their first day of trading following the company’s €156m IPO.

      Korea grills CERCG players

      Korea grills CERCG players

      19 October 2018 By

      South Korea’s financial regulator is planning to investigate local securities firms that sold bonds from China Energy Reserve and Chemicals Group amid growing fears that the issuer, which defaulted in May, is unlikely to pay back Korean investors.

      People walk past a major branch of HSBC at the financial Central district in Hong Kong, China.

      HSBC considers China listing through Shanghai-London Connect

      19 October 2018 By

      HSBC is considering issuing Chinese depositary receipts through Shanghai-London Connect as regulators in China and the UK gear up for the launch of the share trading link by year-end.

      Netflix

      Netflix wins S&P upgrade after producing strong results

      19 October 2018 By

      S&P raised its rating of Netflix by one notch to BB- from B+ on Thursday following strong earnings earlier in the week.

      Logo of dutch retailer HEMA

      HEMA bonds rally on sale news

      19 October 2018

      HEMA’s bonds rallied on Thursday on the announcement that the Dutch retailer is to be sold by private equity owner Lion Capital. It remains unclear, however, whether or not the bonds will be portable.

      Panamanian flag

      LatAm bond issuers see push-back on busy day for region

      18 October 2018 By

      The Latin American primary markets is seeing one of its busiest days in months as five issuers - four corporates and one sovereign - jockey for attention in what remains a volatile asset class.

      Worried investor

      Credit indices widen amid stock sell-off

      18 October 2018 By

      US credit derivatives indices, key gauges of market sentiment, widened sharply on Thursday amid another sharp drop in stocks.

      Chilean national flag

      Chile's Empresa pulls US dollar bond sale

      18 October 2018 By

      Chile’s Empresa Electric Cochrane pulled a US dollar bond sale on Thursday amid broad market volatility, lead managers on the deal told IFR.

      A pharmacist fills a prescription

      Zur Rose targets SFr200m in rights issue

      18 October 2018 By

      Swiss online pharmacy Zur Rose Group is aiming to raise SFr200m (US$201.4m) through a rights issue to fund its takeover of German peer Medpex.

      Spain Houses

      Arima downsizes IPO to below minimum target

      18 October 2018 By

      Arima Real Estate’s Madrid IPO will fall below its minimum €275m target, but it is still expected to close today after a one-day extension to bookbuilding.

      RCI Banque logo

      RCI stalls in sterling

      18 October 2018 By

      RCI Banque cancelled a sterling bond in the middle of the deal’s execution, the second issuer to suffer a mishap in the currency in the past week.

      All Latest news

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      Special Reports and Roundtables

      IFR US ECM Roundtable 2018 IFR+US+ECM+Roundtable+2018+Cover+Image
      IFR held its US ECM Roundtable on September 13 as stock market indices were nearing historic highs. Investors were showing greater resolve to chase performance by participating in ECM transactions not only in the public markets but in private as well.

      IFR IMF/World Bank Report 2018 IFR+IMF+2018+Cover+page
      If there is one thing that characterises both the International Monetary Fund and the World Bank, it is, by their very nature, their internationalism. Their results over their 70-odd-year histories have been achieved through collaboration – the greater the collaboration, the better the result.

      From the practice of placing a bell around the neck of a castrated ram to lead the flock

      Twickenham roadshow

      IFR 2256 20 October to 26 October 2018

      THE KNACK OF a successful bond issue is to engage with investors in extensive pre-marketing and then time the execution of the trade to perfection.