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Sunday, 26 May 2019

Cleaning up

IFR 2285 25 May to 31 May 2019

Since the first environmentally sustainable bond offering was issued in 2007, more than US$600bn has been raised globally, helping to fund the transition to a more sustainable world.

Top News

Miroku Jyoho Service seeks ¥11bn CB

Voter suppression: Sirius seeks to block CDS holders' clout

IFR 2285 25 May to 31 May 2019 By

US private-equity firm Clayton Dubilier & Rice has moved to curb the influence of credit default swap holders in the financing for its latest acquisition, following a string of controversies involving aggressive lenders agitating for company defaults.

Telefonica

Telefonica's nervous wait highlights fragmented green market

IFR 2285 25 May to 31 May 2019 By

As Telefonica faces an anxious wait to see if its debut green transaction is included in a widely followed bond index, bankers say the process has put the spotlight on key players whose decisions can make or break an issuer’s green credentials.

Innogy logo

Green bond black hole leaves investors exposed

IFR 2285 25 May to 31 May 2019 By

Ratings agencies are ramping up their efforts to fill a post-issuance black hole at the heart of the rapidly growing Green bond market, after two incidents in the past year threatened to leave environmentally conscious asset managers in breach of their own strict investment criteria.

Casino supermarket logo

Muddied waters: Rallye launches safeguard proceedings

IFR 2285 25 May to 31 May 2019 By

Rallye entered a safeguard proceeding late on Thursday, confirming market speculation that it would be forced to seek a restructuring.

Movil

America Movil preps loan market return

IFR 2285 25 May to 31 May 2019 By ,

Mexico’s America Movil is scouting lenders to refinance at least US$2.5bn in revolving credit facilities maturing this August, preparing a comeback to the Latin American bank market where it has not issued debt since 2016.

An employee is seen walking over a mosaic of pound sterling symbols set in the floor of the front hall of the Bank of England in London

Leveraged market shuns sterling

IFR 2285 25 May to 31 May 2019 By

Leveraged loan borrowers are shying away from sterling amid the Brexit-related political chaos, instead opting to raise euros or US dollars with swaps in place and hence restricting further an already illiquid market.

Listing reform suits Mulsanne

Listing reform suits Mulsanne

IFR 2285 25 May to 31 May 2019 By

A Chinese menswear company has become the first issuer to price a Hong Kong IPO below its indicative price range, taking advantage of a 2018 rule change as part of the stock exchange’s reforms to stay globally competitive.

Portugal to join Panda fray

Portugal to join Panda fray

IFR 2285 25 May to 31 May 2019 By

Portugal will turn to the Panda market for its next international bond offering in a move that will be closely watched as trade tensions between China and the US continue to dominate headlines.

Coal loans battle Green tide

Coal loans battle green tide

IFR 2285 25 May to 31 May 2019 By

Indonesian companies connected to the coal industry are finding it more difficult to attract lenders as prices fall and banks cut their exposure to carbon-producing industries.

(Environmental and) social justice warriors

Borrowers respond to bondholder demand on ESG standards

IFR 2285 25 May to 31 May 2019 By

US corporates are increasingly responding to bondholders’ demand that they improve environmental, social and governance standards as such issues become a bigger part of credit analysis.

China extends outstanding loans to Congo

China extends outstanding loans to Congo

IFR 2285 25 May to 31 May 2019 By

Details are emerging of China’s precedent-setting agreement struck earlier this month to restructure US$2.2bn of loans from its state-owned China EximBank to the Republic of Congo.

IFR Magazine Top News in Full (subscription required)

People & Markets

Natixis blazes trail with M&A partners

IFR 2285 25 May to 31 May 2019

How do you run a successful investment bank? By offering everything to every client, as the leading US banks do, or by taking a narrower approach and focusing on what you do well?

Deutsche sees more investment bank cuts

IFR 2285 25 May to 31 May 2019

Deutsche Bank Chief Executive Christian Sewing has told shareholders he will be taking another critical look at the corporate and investment bank, with a view to cutting more costs and making sure capital is allocated efficiently.

Jobs go as Barclays turns screw on costs

IFR 2285 25 May to 31 May 2019

Barclays has cut more than 20 jobs in its markets business this week as the British bank turns the screw on cutting costs in its corporate and investment bank, people familiar with the matter said.

Bank payouts set for record after stress tests

IFR 2285 25 May to 31 May 2019

The largest six US banks are expected to pay out 109% of their profits after the Federal Reserve grades the 2019 stress tests next month, according to analysts at KBW.

Who's moving where

IFR 2285 25 May to 31 May 2019

Macquarie has hired Kate Vetch as head of compliance in Europe, the Middle East and Africa from UBS, where she was global head of markets compliance and operational risk control. Vetch will start her new role in early September. She replaces Richard Brearley, who will remain at the bank in a role focusing on specific regulatory projects within the chief executive’s office. Vetch has previously worked at JP Morgan, Citigroup and Bank of America Merrill Lynch.

    More from People & Markets

    Bonds

    Mixed fates for Indian NBFCs

    IFR 2285 25 May to 31 May 2019

    Indiabulls Housing Finance won a vote of confidence from international investors last week with its first US dollar bond issue, even as fellow non-bank lender Dewan Housing Finance Corp (DHFL) took drastic action to prevent a liquidity crisis.

    China: Huarong bonds plunge in early trading

    IFR 2285 25 May to 31 May 2019

    Bad-debt manager China Huarong Asset Management’s newly issued US dollar bonds skidded amid concerns that tight pricing and a weak market sapped demand for the US$1.9bn deal.

    Hong Kong joins Green bond rush

    IFR 2285 25 May to 31 May 2019

    Hong Kong sold its first Green bond on Wednesday, joining a growing number of Asian governments that are embracing sustainable financing for projects to protect the environment.

    Mongolia: Court threat scuppers TDB bond

    IFR 2285 25 May to 31 May 2019

    Trade and Development Bank of Mongolia pulled a proposed US dollar bond offering, after a Mongolian court received a request to detain its chairman in connection with the bank’s role in funding a mining acquisition three years ago.

    Firstmac prices upsized RMBS

    IFR 2285 25 May to 31 May 2019

    Non-bank lender Firstmac increased its Firstmac Mortgage Funding Trust No. 4 Series 2-2019 RMBS issue to A$1.4bn (US$964m) from an indicative size of A$500m.

      More from Bonds

      Loans

      Miroku Jyoho Service seeks ¥11bn CB

      Voter suppression: Sirius seeks to block CDS holders' clout

      IFR 2285 25 May to 31 May 2019 By

      US private-equity firm Clayton Dubilier & Rice has moved to curb the influence of credit default swap holders in the financing for its latest acquisition, following a string of controversies involving aggressive lenders agitating for company defaults.

      JPM promotes trio to lead EMEA leveraged finance

      IFR 2285 25 May to 31 May 2019 By

      JP Morgan has appointed Kevin Foley as head of leveraged finance capital markets for Europe, Middle East and Africa and made two other senior promotions in its debt capital markets team in the region.

      Movil

      America Movil preps loan market return

      IFR 2285 25 May to 31 May 2019 By ,

      Mexico’s America Movil is scouting lenders to refinance at least US$2.5bn in revolving credit facilities maturing this August, preparing a comeback to the Latin American bank market where it has not issued debt since 2016.

      Election relief for Aussie banks

      IFR 2285 25 May to 31 May 2019 By

      Australia’s big four banks enjoyed their best week in years after the Coalition government’s unexpected election win and a loosening of lending standards announced by the prudential regulator raised hopes they can revive flagging credit growth.

      An employee is seen walking over a mosaic of pound sterling symbols set in the floor of the front hall of the Bank of England in London

      Leveraged market shuns sterling

      IFR 2285 25 May to 31 May 2019 By

      Leveraged loan borrowers are shying away from sterling amid the Brexit-related political chaos, instead opting to raise euros or US dollars with swaps in place and hence restricting further an already illiquid market.

      Hong Kong: Lai Sun checks in for hotel refi

      IFR 2285 25 May to 31 May 2019

      Hong Kong-listed property developer Lai Sun Development is self-arranging a refinancing of its HK$3.6bn four-year club loan signed in mid-2015 that backed the development of Hong Kong Ocean Park Marriott Hotel.

      Hong Kong: Three to club Kai Tak takeout facility

      IFR 2285 25 May to 31 May 2019

      A consortium comprising four Hong Kong property developers is close to completing a HK$6bn five-year club loan to take out a bridge loan that backed the acquisition of a land parcel in Kai Tak.

      Duo underwrite tower LBO loan

      IFR 2285 25 May to 31 May 2019

      HSBC and Standard Chartered Bank have underwritten a loan of about HK$2.4bn–$2.85bn (US$305m–$363m) for private equity firm Gaw Capital Partners’ proposed acquisition of an office tower in Hong Kong.

      More from Loans

      Equities

      China: ZME files for Shenzhen IPO

      IFR 2285 25 May to 31 May 2019

      Shenzhen Zhaowei Machinery & Electronic has filed for a proposed Rmb1.03bn (US$149m) Shenzhen IPO with the China Securities Regulatory Commission.

      China: ZhongtaiSec files for a Shanghai IPO

      IFR 2285 25 May to 31 May 2019

      Zhongtai Securities has filed to the China Securities Regulatory Commission for a proposed Shanghai IPO.

      China: CMS rights issue approved by SASAC

      IFR 2285 25 May to 31 May 2019

      China’s State-owned Assets Supervision and Administration Commission has approved the rights issue plan of China Merchants Securities to raise up to Rmb15bn (US$2.2bn).

      China: Bank of Suzhou wins final IPO approval

      IFR 2285 25 May to 31 May 2019

      Bank of Suzhou has won final IPO approval from the China Securities Regulatory Commission.

      China: YST prices Rmb1.25bn IPO

      IFR 2285 25 May to 31 May 2019

      Shandong Yuanli Science and Technology, a fine chemicals producer, has priced a Rmb1.25bn (US$181m) Shanghai IPO at Rmb54.96 per share.

      China: Beijing Cap Land plans rights issues

      IFR 2285 25 May to 31 May 2019

      Hong Kong-listed Beijing Capital Land has proposed rights issues of up to HK$3.4bn (US$437m) of H-shares, A-shares and non-H foreign shares.

      China: Shengjing Bank pulls rights issue

      IFR 2285 25 May to 31 May 2019

      Hong Kong-listed Shengjing Bank has dropped a proposed up to 5.18-for-10 H-share rights issue because of lack of interest from the majority of shareholders.

      Australia: Freedom Foods launches equity raising

      IFR 2285 25 May to 31 May 2019

      Freedom Foods Group, an ASX-listed food manufacturing and sourcing company, has launched a A$130m (US$89m) equity raising comprising an entitlement offering and an institutional placement.

      More from Equities

      IFR SNAPSHOT-Primaries quiet as Memorial Day holiday arrives

      24 May 2019 By

      A quiet Friday for US corporate primaries as desks prepare for the Memorial Day holiday.

      The Neiman Marcus sign outside a store in Golden, Colorado

      Neiman Marcus looks to buy time with new junk bond

      23 May 2019 By ,

      Struggling retailer Neiman Marcus was marketing a US$550m Triple C rated junk bond this week as part of a debt exchange aimed at giving the company time to reach a firmer financial footing.

      (Environmental and) social justice warriors

      Borrowers respond to bondholder demand on ESG standards

      23 May 2019 By

      US corporates are increasingly responding to bondholders’ demand to improve environmental, social and governance (ESG) standards as such issues become a bigger part of credit analysis.

      U.S. Navy photo

      Serco raises £140m intraday

      23 May 2019

      Support services group Serco raised £140m in an intraday ABB on Thursday to fund its acquisition of a naval systems unit from US defence company Alion.

      sweden US$ bond

      Veoneer upsizes equity raise and CB on heavy demand

      23 May 2019

      NYSE-listed Swedish automated driving technology business Veoneer upsized its combined offering of equity and five-year convertible bonds on Wednesday to raise US$600m.

      A dry bulk cargo ship

      2020 Bulkers funds for vessels construction

      23 May 2019

      Norwegian bulk shipping company 2020 Bulkers is targeting US$70.2m for construction of eight ships that have delivery dates between September 2019 and May 2020 and are under construction at New Times Shipyard in China.

      NatWest

      MOVES-NatWest SSA DCM boss headed for Paris

      23 May 2019 By

      NatWest Markets’ head of sovereign, supranational and agencies debt capital markets is moving to Paris as the bank steps up its Brexit plans, according to a source familiar with the move.

      The Telenor logo hangs outside one of their stores in Stockholm

      Rare issuers coaxed into hot euro market

      23 May 2019 By

      The strength of the European corporate bond market coaxed two rare issuers from different parts of the credit spectrum out of the woodwork on Thursday.

      Casino supermarket logo

      Casino, Rallye bonds suspended in rare move before announcement

      23 May 2019 By

      Restructuring expectations at Rallye, the holding company of French retailer Casino, caused a spike in credit default swaps after securities were suspended earlier on Thursday.

      Crude oil tankers

      Shareholders back Hunter funding of new vessels

      23 May 2019

      Norwegian shipping investment business Hunter Group has raised funds to finance eight vessels under construction at Daewoo Shipbuilding & Marine Engineering in South Korea.

      British Pound Sterling banknotes

      GCP Asset Backed Income Fund placing seeking £66.9m

      23 May 2019

      GCP Asset Backed Income Fund is seeking to raise £66.9m through a placing to repay borrowings and expand its loan portfolio.

      IFR SNAPSHOT-IG primary goes quiet, secondary in focus

      23 May 2019 By

      The IG primary has gone quiet on Thursday, just a day away from the start of Memorial Day weekend.

      NN Bank logo

      NN Bank strikes as market takes fright

      23 May 2019 By

      Nationale-Nederlanden Bank stepped into a shaky European primary market with an inaugural senior preferred trade on Thursday, successfully securing a more than twice-covered book for a €500m no-grow four-year deal.

      Paris

      Societe du Grand Paris pushes into the future

      23 May 2019 By

      Societe du Grand Paris has reached another landmark since debuting in the market last year, selling a €1bn May 2050 Green - its longest maturity yet.

      People are silhouetted next to the Deutsche Bank's logo prior to the bank's annual meeting in Frankfurt, Germany.

      Deutsche sees more investment bank cuts

      23 May 2019 By

      Deutsche Bank chief executive Christian Sewing has told shareholders he will be taking another critical look at the corporate and investment bank, with a view to further reducing costs and making sure capital is allocated efficiently.

      The logo of Australia's biggest investment bank Macquarie Group Ltd adorns a desk in the reception area of their Sydney office headquarters in Australia.

      MOVES-Macquarie hires European compliance head from UBS

      23 May 2019 By

      Macquarie has hired Kate Vetch as head of compliance in Europe, the Middle East and Africa from UBS, where she was global head of markets compliance and operational risk control.

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      Special Reports and Roundtables

      IFR SSA Special Report 2019 IFR+SSA+Special+Report+2019
      Best laid plans: Few would be so presumptuous as to lay claim to the ability to plot the progress of the global economy with unerring accuracy on a constant basis. But there are still many that make the prediction game their stock in trade – with varying degrees of success.

      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.

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

      Hard men

      IFR 2285 25 May to 31 May 2019

      WHILE THE REST of the world was sitting down to watch the series finale of Game of Thrones, Citigroup’s Michael Lavelle was reaching the summit of the world’s highest mountain.