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Tuesday, 30 May 2017

Saving Children

IFR 2185 27 May to 2 June 2017

IFR’s awards events in January raised over £1m for Save the Children, and the money is already helping the charity meet vital needs.

Top News

People holds French and European flags

BNP Paribas, SG pump €1bn into prop trading units

IFR 2185 27 May to 2 June 2017 By

French banks BNP Paribas and Societe Generale have pumped almost €1bn into two little-known proprietary trading operations, showing that so-called prop trading has not died out for all banks despite regulatory changes that seemed to outlaw the activity.

Azerbaijan

Azeris aggravate bank bondholders

IFR 2185 27 May to 2 June 2017 By

The International Bank of Azerbaijan’s plan to swap US$3.34bn of foreign currency debt, principally for sovereign bonds with longer maturities, looks likely to be backed by creditors despite some protest from bondholders.

BoC steps up for Syngenta buy

BOC steps up for Syngenta buy

IFR 2185 27 May to 2 June 2017 By Carol Zhong, Julie Zhu

China National Chemical Corp has raised US$20bn mainly from the issue of perpetual bonds to finance its purchase of Swiss seeds company Syngenta, according to a regulatory filing.

ChemChina headquarters

ChemChina blowout overcomes China downgrade

IFR 2185 27 May to 2 June 2017 By , Carol Chan

China National Chemical Corp made a storming debut in the US dollar bond market, drawing huge oversubscription despite early market jitters caused by Moody’s downgrade of China’s sovereign rating.

Kinder Morgan sign

Kinder Morgan lowers sights on Canadian pipeline IPO

IFR 2185 27 May to 2 June 2017 By

Controversy surrounding the Trans Mountain oil pipeline expansion - and the potential impact on delivering the C$7.4bn (US$5.5bn) project - meant Kinder Morgan had to acquiesce to a deeply discounted valuation in order for the C$1.75bn (US$1.3bn) spin-off IPO of Kinder Morgan Canada to go ahead.

Kangaroo/Pence

Downgrade rocks Australia's Liberty

IFR 2185 27 May to 2 June 2017 By

A mass downgrade of Australian financial institutions last week left Liberty Financial facing an immediate increase in borrowing costs.

Petsmart store

Bond funds merger of US pet rivals

IFR 2185 27 May to 2 June 2017 By

Investors threw PetSmart a bone on Thursday, signing up for another US$2bn of junk bonds to help the largest US pet supply chain finance its acquisition of top online rival Chewy.

Senator Pat Toomey

GAO agrees to review lev lending guidelines

IFR 2185 27 May to 2 June 2017 By

The investigative arm of Congress has agreed to consider whether curbs on leveraged loans set by US regulators should be subject to Congressional review, according to a letter seen by IFR.

GN Store Nord

Duo break European equity-linked drought

IFR 2185 27 May to 2 June 2017 By

Danish hearing aids and headset company GN Store Nord awakened the equity-linked market from its two-month slumber with Tuesday’s €225m five-year bond with warrants issue. And then just two days later South African platinum miner Implats brought a dual-currency convertible to raise US$503m-equivalent.

IFR Magazine Top News in Full (subscription required)

People & Markets

Living wills face delicate surgery

IFR 2185 27 May to 2 June 2017

Nearly nine years after Lehman Brothers filed for bankruptcy, major banks face the prospect of having to overhaul their rescue plans again due to increasing concerns that global banking regulation is fragmenting.

Canadian banks get capital markets lift

IFR 2185 27 May to 2 June 2017

Canadian banks overcame worries about the country’s real estate market to beat expectations in the latest quarter, thanks to help from their capital markets activities.

Basel IV coming soon

IFR 2185 27 May to 2 June 2017

Global regulators will soon finalise a suite of rules to ensure banks across the world hold enough capital to withstand rocky markets without taxpayer aid, one of their top officials said last week.

UK investment bank fees dip, lagging global rise

IFR 2185 27 May to 2 June 2017

UK investment bank fees this year are running at their lowest level for four years and represent the smallest share of global fees since records began in 2000.

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

Charm offensive

IFR 2185 27 May to 2 June 2017

GLENCORE’S CEO IVAN Glasenberg is known for his no-nonsense approach to deal-making, but the mining giant’s approach for Bunge has revealed a hitherto unseen touchy-feely side.

    More from People & Markets

    Bonds

    Potential issuance weighs on tight Portugal

    IFR 2185 27 May to 2 June 2017

    Portugal’s improved economic situation and likely exit from the Excessive Deficit Procedure could lead to €10bn of early repayments to the IMF.

    No slowdown in duration appetite for Belgian SSAs

    IFR 2185 27 May to 2 June 2017

    Belgian issuers dominated the euro market last week, with demand for soft-core debt and duration supporting SSA deals.

    Sterling investors open to continental SSAs

    IFR 2185 27 May to 2 June 2017

    Canadian provinces have dominated sterling SSA supply in recent weeks, with prints from Manitoba, Quebec and Ontario. But last week saw them make way for Continental European SSAs, with KfW and OeKB out with deals on Tuesday, while CDC is planning its comeback.

    Covered bond deals priced in the week ending May 26

    IFR 2185 27 May to 2 June 2017

      Pricing dateIssuerAmountMaturityCoupon (%)ReofferSpread (bp)Yield (%)Pricing stepsNIP (bp)Book sizeRatingsBookrunnersDistribution EUROS                           May 22 2017 Sparebanken Sor €500m May 30 2022 0.125 99.508 MS flat 0.224 MS+3 area, MS+1 area, MS flat 0 c.€850m Aaa CMZ/Danske/LBBW/Nordea/Uni Ger/Aus 40%, ...

    KfW finds size in short end

    IFR 2185 27 May to 2 June 2017

    KfW sold a US$5bn three-year bond, building on appetite for short-dated safe assets in US dollars.

      More from Bonds

      Loans

      BoC steps up for Syngenta buy

      BOC steps up for Syngenta buy

      IFR 2185 27 May to 2 June 2017 By Carol Zhong, Julie Zhu

      China National Chemical Corp has raised US$20bn mainly from the issue of perpetual bonds to finance its purchase of Swiss seeds company Syngenta, according to a regulatory filing.

      Olam eyes Samurai loan market

      IFR 2185 27 May to 2 June 2017 By Wakako Sato, Chien Mi Wong

      Japanese lenders are showing greater interest in loans for overseas borrowers as they search for yield in a negative interest rate environment.

      Rising threat to renminbi loans

      IFR 2185 27 May to 2 June 2017 By Yan Jiang

      Soaring interbank lending rates have become hurdles in China’s syndicated loan market, shutting out potential lenders and leaving borrowers facing higher interest costs.

      Senator Pat Toomey

      GAO agrees to review lev lending guidelines

      IFR 2185 27 May to 2 June 2017 By

      The investigative arm of Congress has agreed to consider whether curbs on leveraged loans set by US regulators should be subject to Congressional review, according to a letter seen by IFR.

      TPG eyes US$1.75bn of debt for Wave purchase

      IFR 2185 27 May to 2 June 2017

      TPG Capital has got committed debt financing of US$1.75bn from Credit Suisse and UBS to pay for its acquisition of Wave Broadband, two people familiar with the matter told IFR.

      PortAventura seeks €620m divi recap

      IFR 2185 27 May to 2 June 2017

      Spanish entertainment resort company PortAventura World has launched a €620m leveraged loan to refinance existing debt and pay a €170m dividend to shareholders.

      Indonesia: Astra club goes to lucky 13

      IFR 2185 27 May to 2 June 2017

      A US$600m five-year club loan for Astra International has been allocated to 13 participating banks.

      Indonesia: MNC works to lower costs

      IFR 2185 27 May to 2 June 2017

      Media Nusantara Citra has launched a US$200m four-year refinancing into general syndication.

      More from Loans

      Equities

      India: Gandhar Oil hires for float

      IFR 2185 27 May to 2 June 2017

      Gandhar Oil Refinery India is hiring banks in readiness for an IPO of Rs5bn-Rs10bn (US$77m-$155m).

      India: Piramal to pursue Rs50bn QIP

      IFR 2185 27 May to 2 June 2017

      Piramal Enterprises aims to pursue a qualified institutional placement of shares to raise up to Rs50bn (US$774m).

      China: Tebian Electric sells rights

      IFR 2185 27 May to 2 June 2017

      Tebian Electric Apparatus Stock has launched a rights issue of up to 506m shares on a 1.56-for-10 basis, aiming to raise up to Rmb3.63bn (US$529m).

      China: ZheshangSec sets IPO target

      IFR 2185 27 May to 2 June 2017

      Zheshang Securities will be raising up to Rmb2.81bn (US$411m) from a Shanghai IPO, having set the price at Rmb8.45 per share.

      China: Yinlong prepares to list

      IFR 2185 27 May to 2 June 2017

      Zhuhai Yinlong New Energy is preparing to launch a domestic IPO after Shenzhen-listed Gree Electric Appliances decided to scrap an acquisition plan of Rmb13bn (US$1.89bn) last November.

      China: Cinese Property plans IPO

      IFR 2185 27 May to 2 June 2017

      Dongguan-based Cinese Property aims to list in Hong Kong through an IPO of about US$100m-$150m this year, according to people close to the plans.

      China: CDH trims WH Group stake

      IFR 2185 27 May to 2 June 2017

      Private equity firm CDH has raised HK$5.79bn (US$747m) from a sell-down of its stake in pork producer WH Group.

      China: Great Wall plans pre-IPO

      IFR 2185 27 May to 2 June 2017

      China Great Wall Asset Management, one of the mainland’s top four distressed-asset managers, plans to raise about US$1bn from a pre-IPO strategic placement before going public in 2018, according to people familiar with the situation.

      More from Equities

      Derivatives

      Custom indices revive structured products

      IFR 2185 27 May to 2 June 2017 By

      Customised equity indices that have been re-engineered to pay fixed dividends have helped to reinvigorate demand for structured products by providing improved pricing flexibility against a backdrop of low interest rates.

      Swaps market collaborates for common standards

      IFR 2185 27 May to 2 June 2017 By

      Thirty years after the launch of ISDA’s Master Agreement, which laid the foundation for the US$483trn over-the-counter derivatives market, the industry is collaborating once again.

      DTCC eyes Q1 2018 for blockchain CDS reporting

      IFR 2184 20 May to 26 May 2017 By

      The Depository Trust & Clearing Corporation plans to go live in the first quarter of 2018 with its blockchain-driven platform for credit default swaps reporting.

      Too-big-to-fail hinges on CCP rules

      IFR 2184 20 May to 26 May 2017 By

      New legislation governing the recovery and resolution of failing clearinghouses could finally stamp out the spectre of too-big-to-fail, a key aim of global regulators.

      Citi sign

      Citigroup launches 'credit VIX'

      IFR 2184 20 May to 26 May 2017 By

      Citigroup has launched a credit equivalent of Wall Street’s “fear gauge” that is intended to provide an accurate metric for risk aversion in the asset class.

      More from IFR Derivatives

      Bankers expect lighter high grade flow for shorter week

      26 May 2017 By Eleanor Duncan

      Bankers are predicting a lighter flow of issuance in the high grade corporate bond market next week coming off the Memorial Day holiday weekend. Forecasts were in the US$20bn area for the shorter week compared to the US$36bn that priced this week.

      US high-grade market posts third-largest May

      26 May 2017 By Eleanor Duncan

      The US high-grade bond market clinched its third-largest May ever this week, with more than US$36bn of new deals welcomed by investors who shrugged off the grind tighter in yields.

      MOVES-Citi appoints Watson head of EMEA multi-asset group

      26 May 2017 By

      Citigroup has appointed Matt Watson as head of its multi-asset group for Europe, Middle East and Africa, giving him regional oversight of the division responsible for cross-asset structuring and product development.

      DERIVATIVES-TriOptima adds MVA to credit risk analytics

      26 May 2017 By

      Post-trade processing firm TriOptima has expanded its triCalculate counterparty credit risk analytics service to include margin valuation adjustment (MVA) calculations.

      Investors curb enthusiasm for PetSmart bonds

      26 May 2017 By

      The riskier part of a US$2bn bond deal backing PetSmart’s acquisition of rival Chewy dropped two points on its first day of trading Friday.

      DERIVATIVES-T3 launches EM currency index

      26 May 2017 By

      T3 Index has launched a benchmark that measures the performance of the world’s eight largest emerging market exchange rates, allowing investors to gain exposure through a single trade.

      DERIVATIVES-Custom indices revive French structured products

      26 May 2017 By

      Customised equity indices that have been re-engineered to pay fixed dividends have helped to reinvigorate demand for structured products by providing improved pricing flexibility against a backdrop of low interest rates.

      China to amend issuance rules on convertible bonds

      26 May 2017

      The China Securities Regulatory Commission said at a weekly briefing today that it planned to overhaul issuance rules on convertible bonds and exchangeable bonds, according to local media.

      Retail Apparel sale scuppers IPO plans

      26 May 2017

      Menswear company Retail Apparel Group is the latest to drop out of Australia’s IPO pipeline after majority owner Navis Capital sold its stake to South Africa’s Foschini Group.

      MOVES-Wells Fargo hires ex-Goldman partner in Hong Kong

      26 May 2017

      Peter Welch has joined Wells Fargo Securities as head of global institutional capital group for Asia-Pacific in Hong Kong.

      Sinopec

      Sinopec invites pitches for US$10bn retail unit IPO

      26 May 2017 By

      China Petroleum & Chemical Corp has invited banks to pitch for a role on the IPO of its retail unit, putting Sinopec Marketing on track for a public listing as early as the end of this year.

      MOVES-Natixis hires in Singapore

      26 May 2017

      Natixis has appointed Ashish Jain as head of fixed income, commodities and equity derivatives sales for South-East Asia and Australia.

      An Indian Oil Corporation gas station is seen in New Delhi

      Government to hire five for Indian Oil Corporation share sale

      26 May 2017 By S Anuradha

      India’s Department of Investment and Public Asset Management is set to hire Citigroup, Deutsche Bank, Goldman Sachs, ICICI Securities and SBI Capital for a 3% stake sale in Indian Oil Corporation for a maximum Rs64bn (US$1.4bn).

      CORRECTED-Nomura IB chairman leaves

      26 May 2017

      Zhizhong Yang has left as Nomura’s investment banking chairman for Asia ex-Japan.

      SBI set to hire six for Rs150bn QIP

      26 May 2017 By S Anuradha

      State Bank of India is set to hire Bank of America Merrill Lynch, Deutsche Bank, IIFL, JM Financial, Kotak and SBI Capital for a qualified institutional placement of share of up to Rs150bn (US$2.3bn), according to two persons with knowledge of the plan.

      MOVES-UBS head of Perth office leaves

      26 May 2017

      Tim Day has left as head of the Perth office at UBS.

      All Latest news

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      Special Reports

      IFR Review of the Year 2016
      It’s normally fair to say that bankers grumbling about the state of the markets deserve the same sympathy as farmers moaning about the weather. It goes with the territory. And it is up to them to simply get on with it.

      IFR Americas Review of the Year 2016
      Markets are more agnostic about elections than the public at large. Even as half (or more) of America was gnashing its teeth over the election of the country’s first non-politician president since Eisenhower, the “Trump Rally” was in full flight.

      IFR German Corporate Funding Roundtable 2016
      IFR convened its fifth annual German Corporate Funding Roundtable in Frankfurt in mid-November just as bond markets, led by US Treasuries, were starting their sharp re-pricing off the back of higher inflation expectations and tighter US money.

      IFR India's Path to Sustainable Growth Roundtable 2016
      IFR recently convened a highly insightful roundtable discussion in Washington DC, entitled “India’s Path to Sustainable Growth: Challenges and Opportunities”. State Bank of India chair Arundhati Bhattacharya delivered some affirmative opening comments that eloquently framed the discussion that followed./p>

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

      Charm offensive

      IFR 2185 27 May to 2 June 2017

      GLENCORE’S CEO IVAN Glasenberg is known for his no-nonsense approach to deal-making, but the mining giant’s approach for Bunge has revealed a hitherto unseen touchy-feely side.