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Saturday, 24 February 2018

Hong Kong Stuey

IFR 2222 24 February to 2 March 2018

“All political lives end in failure” is a familiar quote. But what Enoch Powell actually wrote was more nuanced: “All political lives, unless they are cut off in midstream at a happy juncture, end in failure.”

Top News

Spain

Spain breaks record as investors hunt for safety with yield

IFR 2222 24 February to 2 March 2018 By

The success of Spain’s 30-year bond, the kingdom’s first trade at the tenor in nearly two years, was the latest sign of how comfortable investors are buying peripheral sovereign paper as fears recede that this segment will be hardest hit when the ECB’s quantitative easing ends.

Youths ride bicycles while carrying national flags cross a tea plantation in Malino.

Indonesia becomes first sovereign borrower to go Green in Asia

IFR 2222 24 February to 2 March 2018 By

The Republic of Indonesia issued the first Green sovereign bonds from Asia on Thursday, driving awareness of environmentally conscious investments in a region that has lagged the rest of the world.

Stuart T Gulliver

Gulliver's HSBC: simpler, but returns still lag

IFR 2222 24 February to 2 March 2018 By

The challenge for Stuart Gulliver when he became CEO of HSBC at the start of 2011 was to shake off a moniker that was increasingly being used for the bank - How Simple Became Complicated.

Siemens Healthineers logo

Healthineers may give European IPOs a shot in the arm

IFR 2222 24 February to 2 March 2018 By

Siemens Healthineers kicked off its jumbo Frankfurt float on Monday with bankers talking up hopes that the listing of such a high quality and large business will rouse a European IPO market that has floundered so far this year.

Punjab National Bank

PNB scandal threatens Indian share sales

IFR 2222 24 February to 2 March 2018 By

The pipeline of share sales from India’s state-owned banks is in tatters after an alleged US$1.8bn fraud at the country’s second-biggest public sector bank revived concerns over bad loans and corporate governance in the sector.

Broadcom

US M&A lending on a high

IFR 2222 24 February to 2 March 2018 By

A flurry of huge US acquisitions is pushing high-grade M&A lending to early year highs as blue-chip firms take advantage of US tax reform and try to fight off the threat of online retail giant Amazon.

Volatility

'February funk' poses trading questions

IFR 2222 24 February to 2 March 2018 By

Market experts have dubbed the market movements which saw the Cboe market volatility index jump from 17 to 50 in the first few trading days of this month the “February funk” after the heightened volatility proved extremely short lived.

A GNC store

GNC tweaks loan amendment to thwart holdouts

IFR 2222 24 February to 2 March 2018 By

Ailing US vitamin and supplement retailer GNC Holdings has sweetened the terms of a complex amendment to its existing credit agreement to extend a looming March 2019 debt maturity and finally secured an agreement on Friday, after early consents from lenders fell short of a required threshold.

Blackstone Group office

Financing shapes up for Blackstone's TR unit buy

IFR 2222 24 February to 2 March 2018 By ,

Details of the US$13.5bn loan and bond financing backing US private equity firm Blackstone Group’s acquisition of a majority stake in Thomson Reuters’ Financial and Risk unit are emerging.

Rite Aid sign

Albertsons to list through Rite Aid merger

IFR 2222 24 February to 2 March 2018 By

US grocery giant Albertsons moved a step closer to finally securing a listing by agreeing to merge with publicly traded drug store chain Rite Aid in a US$22.5bn tie-up of troubled retailers.

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People & Markets

HSBC plans up to US$7bn AT1

IFR 2222 24 February to 2 March 2018

HSBC plans to issue up to US$7bn of loss-absorbing debt before the end of June, which should leave the door open for Europe’s biggest bank to restart share buybacks in the second half of this year.

India orders early AT1 calls

India orders early AT1 calls

IFR 2222 24 February to 2 March 2018

India’s central bank has taken the unprecedented step of ordering some of the country’s weaker banks to redeem their capital securities ahead of schedule, triggering a debate over regulatory interference in the fixed-income sector.

ECM rides out volatility wave

IFR 2222 24 February to 2 March 2018

Volatility in equity markets may be good for trading but it’s certainly not good for equity capital markets teams hoping to continue last year’s recovery.

Barclays IB skids to first quarterly loss in three years

IFR 2222 24 February to 2 March 2018

Barclays’ corporate and investment bank made its first quarterly loss for three years in the fourth quarter as income fell in trading, equities and banking and it took a loss on UK construction firm Carillion.

Deutsche to cut up to 500 jobs

IFR 2222 24 February to 2 March 2018

Deutsche Bank is to cut up to 500 investment banking jobs with 250 initially earmarked to go, according to a person close to the situation.

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    Bonds

    Spain edges closer to casting off peripheral tag

    IFR 2222 24 February to 2 March 2018

    The Kingdom of Spain edged closer to casting off its peripheral tag last week, printing a €6bn October 2048 on the back of one of the largest books ever seen at that tenor for a eurozone sovereign.

    Bond changes insulate Avolon from HNA woes

    IFR 2222 24 February to 2 March 2018

    Ireland’s aircraft leasing company Avolon has added an extra layer of protection for bondholders in a bid to dispel concerns about the risk of it being stripped for cash by China’s HNA Group, ratings agency Fitch said on Thursday.

    Primary recovers after volatility

    IFR 2222 24 February to 2 March 2018

    Unfazed by a recent bout of volatility and hefty withdrawals from their clients, fund managers have showed strong appetite for new bond sales from junk-rated borrowers.

    Sprint back after three years

    IFR 2222 24 February to 2 March 2018

    US wireless carrier Sprint printed its first junk-bond in three years on Tuesday, looking to chip away at its massive financing needs after merger talks with T-Mobile collapsed.

    KfW opens third Kauri line

    IFR 2222 24 February to 2 March 2018

    German federal government-guaranteed agency KfW (Aaa/AAA/AAA) opened a third line of Kauri bonds with last Wednesday’s NZ$400m (US$296m) five-year print via joint leads ANZ, BNZ and TD Securities.

      More from Bonds

      Loans

      Broadcom

      US M&A lending on a high

      IFR 2222 24 February to 2 March 2018 By

      A flurry of huge US acquisitions is pushing high-grade M&A lending to early year highs as blue-chip firms take advantage of US tax reform and try to fight off the threat of online retail giant Amazon.

      A GNC store

      GNC tweaks loan amendment to thwart holdouts

      IFR 2222 24 February to 2 March 2018 By

      Ailing US vitamin and supplement retailer GNC Holdings has sweetened the terms of a complex amendment to its existing credit agreement to extend a looming March 2019 debt maturity and finally secured an agreement on Friday, after early consents from lenders fell short of a required threshold.

      Australia: Fortescue gets US$1.4bn

      IFR 2222 24 February to 2 March 2018

      Fortescue Metals Group has obtained a US$1.4bn four-year loan to redeem some of its 9.75% senior secured notes maturing in 2020 and cut annual borrowing costs by US$80m.

      Tokyo Star targets Aussie property market

      IFR 2222 24 February to 2 March 2018 By Wakako Sato

      Japanese regional lender Tokyo Star Bank is pushing into Australia’s property market as it expands overseas in an effort to increase returns beyond its stagnant domestic market.

      Germany: Telefonica places €250m SSD

      IFR 2222 24 February to 2 March 2018

      Telefonica Deutschland has placed a €250m Schuldscheindarlehen after adjusting the financing to get the deal over the line.

      Masergy wraps US$369m term loan

      IFR 2222 24 February to 2 March 2018

      Masergy set final terms on a US$369m first-lien term loan, which includes a US$25m incremental loan.

      Flora offers spreads on LBO loans

      IFR 2222 24 February to 2 March 2018

      Flora Food Group, Unilever’s spreads business, has released price guidance on its €4.6bn-equivalent covenant-lite term loan B buyout deal.

      Fund financing poses risks

      IFR 2222 24 February to 2 March 2018 By Max Bower

      Breakneck growth in the US$400bn fund financing market could pose a systemic risk to the banking sector as alternative investors borrow to increase returns, bankers and investors have said.

      More from Loans

      Equities

      India: Vectus invites banks to manage IPO

      IFR 2222 24 February to 2 March 2018

      Vectus Industries has invited bids from banks to manage its US$80m–$100m IPO planned for later this year.

      India: Flemingo files for Rs25bn IPO

      IFR 2222 24 February to 2 March 2018

      Duty-free shop operator Flemingo Travel Retail has filed the draft prospectus for a Rs25bn (US$393m) IPO with the Securities and Exchange Board of India.

      India: Sembcorp to list business

      IFR 2222 24 February to 2 March 2018

      Sembcorp Industries has confirmed that it plans to list its Indian energy business Sembcorp Energy India on BSE and the National Stock Exchange.

      India: ICICI Secs looking at early March

      IFR 2222 24 February to 2 March 2018

      ICICI Securities is considering opening books for its Rs40bn–Rs50bn (US$615m–$768m) IPO as early as the week of March 5, according to people close to the deal.

      India: Jubilant Life Sciences block priced

      IFR 2222 24 February to 2 March 2018

      Major shareholders of Jubilant Life Sciences raised Rs4.9bn (US$75m) from the sale of 5.33m shares in the company.

      India: Aster DM completes Rs9.8bn IPO

      IFR 2222 24 February to 2 March 2018

      Aster DM Healthcare’s downsized Rs9.8bn (US$153m) IPO was 1.31 times subscribed when books closed on February 15.

      China: CEA completes IPO

      IFR 2222 24 February to 2 March 2018

      China Express Airlines has raised Rmb836m (US$132m) from a Shenzhen IPO of 40.5m shares, or about 10% of its enlarged capital, at Rmb20.64 each.

      Australia: Woodside completes insto offer

      IFR 2222 24 February to 2 March 2018

      Woodside Petroleum completed a A$1.57bn (US$1.24bn) institutional entitlement offer last week.

      More from Equities

      Derivatives

      Solid outcome for ALD floater

      IFR 2222 24 February to 2 March 2018

      ALD, the car leasing unit of French bank Societe Generale, on Tuesday last week brought some diversity to a European corporate bond market that has otherwise been dominated by REIT trades.

      Three in the pipeline

      IFR 2222 24 February to 2 March 2018

      Prologis International Funding II, guaranteed by Prologis European Logistics Fund, FCP-FIS, has mandated Bank of America Merrill Lynch, Credit Agricole and ING as joint Green structuring agents for a Green bond.

      India knocks SGX's derivatives ambitions

      IFR 2221 17 February to 23 February 2018 By

      Singapore Exchange’s status as the leading offshore derivatives hub for Indian equities has taken a heavy blow as it faces losing access to data from the main Indian bourses.

      TDC in fallen angel danger zone after Macquarie bid

      IFR 2221 17 February to 23 February 2018

      Moody’s and S&P have placed their Baa3/BBB- ratings for TDC on review for downgrade/watch negative after the Danish telecoms company backed a €5.4bn-equivalent buyout offer from Macquarie and a consortium of local pension funds.

      Single-name CDS still relevant says ICMA

      IFR 2221 17 February to 23 February 2018 By

      Markets participants and stakeholders should embrace and promote single-name credit default swap products for the benefit of the European corporate bond market, according to an International Capital Market Association (ICMA) study.

      More from IFR Derivatives

      With shunning of Barbie, Fitch pushes Mattel deeper into junk

      23 February 2018 By

      Mattel plunged deeper into junk territory on Friday, as Fitch dealt the struggling toymaker its third downgrade in four months following disappointing earnings and the impact of children moving away from traditional toys.

      General Mills

      General Mills hit with downgrades after M&A

      23 February 2018 By

      S&P and Moody’s downgraded Cheerios cereal maker General Mills’ ratings on Friday after the company announced it was acquiring Blue Buffalo Pet Products for US$8bn.

      IFR SNAPSHOT: Market movers pack for Vegas, Miami

      23 February 2018 By

      After a decent week of prints in investment grade - just over US$18bn - supply is still running more than US$45bn behind last year’s pace as we close out the last full week of February.

      The Royal Bank of Scotland (RBS) branch in central London

      NatWest Markets makes Q4 loss as RBS returns to profit

      23 February 2018 By

      NatWest Markets made a £159m operating loss in its core business in the fourth quarter after a 10% fall in income from a year earlier as it suffered from the same “challenging market conditions” that hurt trading at bigger rivals.

      Youths ride bicycles while carrying national flags cross a tea plantation in Malino.

      Indonesia prices first Green sovereign sukuk

      23 February 2018 By

      The Republic of Indonesia issued the first Green sovereign bond from Asia on Thursday, driving awareness of environmentally-conscious investments in a region that has lagged the rest of the world.

      Junk bond sales recover after volatility

      22 February 2018 By

      Unfazed by a recent bout of volatility and hefty withdrawals from their clients, fund managers are showing strong appetite for new bond sales from junk-rated borrowers.

      Odebrecht logo

      Debt market eyes due date for Brazil's Odebrecht

      22 February 2018 By

      Investors are waiting to see if cash-poor Odebrecht Engenharia e Construcao will make an upcoming bond payment or whether the Brazilian company will opt for a debt restructuring instead.

      US dollar bills

      US high-grade sees busiest day for three months

      22 February 2018 By

      The US high-grade bond market saw its busiest day in more than three months on Thursday, with nine borrowers looking to sell fresh debt to an investor base that has been short on supply.

      Dutch Star SPAC raises €55.36m

      22 February 2018 By

      Trading began today for special purpose acquisition company Dutch Star Companies One, which intends to acquire a significant minority stake in a business primarily operating in Europe and preferably in the Netherlands.

      Climbers collect mock buns on a tower during a 'bun-scrambling' event as part of the Bun Festival on the tiny island of Cheung Chau in Hong Kong.

      Bun fight for UnipolSai Tier 2 as big slice goes to JLMs

      22 February 2018 By

      Investors were fighting for allocations in UnipolSai’s €500m no-grow 10-year bullet Tier 2, with some €250m of the €1bn-plus orders due to be placed among the joint lead managers as a matter of priority.

      A cat trying to open the door

      IFR SNAPSHOT: Nine lives for the high-grade market

      22 February 2018 By

      At least nine borrowers have come roaring into the high-grade primary this Thursday morning, even as the 10-year Treasury is hanging above the 2.90% level in the wake of the Fed’s January minutes.

      Faurecia

      Faurecia sees return of high-yield supply

      22 February 2018 By

      The European high-yield primary market has come back to life with a postponed deal from French auto equipment supplier Faurecia.

      Embraer's E-175 jet

      Global Jet's debut ABS takes flight

      22 February 2018 By

      Investors snapped up the debut asset-backed bond from Global Jet Capital, embracing the deal’s revamped format after the company failed to get its first attempt off the runway in October.

      A security guard walks under a logo of Overseas-Chinese Banking Corp Ltd (OCBC) at the company's headquarters in Singapore.

      OCBC offers diversification but fails to excite

      22 February 2018 By

      Orders were slow to build for Oversea-Chinese Banking Corporation’s €500m five-year covered bond in the latest sign that investors are increasingly selective with spreads at such tight levels.

      Vienna

      Austrian unrated hybrids hit the market

      22 February 2018 By

      The hybrid market is coming back to life with unrated deals from Austrian issuers UBM Development and Egger Holzwerkstoffe.

      Akbank branch

      Akbank sweats on way to Tier 2 deal

      22 February 2018 By

      Akbank dived into the market on Tuesday with a US$400m Tier 2 offering, but the deal struggled to gain momentum as headlines about a potential escalation in the conflict between Turkish forces and Kurdish militia in Northwest Syria dented confidence in an already fragile buyside.

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      Special Reports

      IFR Review of the Year 2017 IFR+RoY+Cover+2017+Homepage
      IFR's review of 2017 looks at bank regulation, the latest developments in Green loans, bank hiring, standalone investment banks, Saudi reforms and more, including a visit to Save the Children projects part-funded by donations at the IFR Awards dinner.

      Also includes the IFR Awards 2017.

      German Corporate Funding Roundtable 2017 IFR+German+Corporate+Funding+RT+2017+Cover
      IFR’s seventh annual German Corporate Funding roundtable, which took place in Frankfurt in early November, found participants upbeat but at the same time pensive and rather preoccupied. It was an unusual emotional juxtaposition.

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

      Goodbye to all that

      IFR 2222 24 February to 2 March 2018

      SO FAREWELL THEN Stuart Gulliver. Anyone expecting an emotional farewell on his final earnings presentation was sorely disappointed.