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Thursday, 19 October 2017

The national flag and emblem of Belarus

Investors take punt on Eurotorg

19 October 2017 By

Eurotorg brought a different flavour to the bond markets on Wednesday as it became the first Belarusian corporate to issue.

IFR SNAPSHOT: Spreads grind tighter (again)

19 October 2017 By ,

Spreads keep grinding tighter, with Triple B, Double B and IG bonds overall ratcheting in to post-crisis tights, according to data out from Bank of America Merrill Lynch this morning.

Logo of the European Stability Mechanism (ESM)

ESM could make dollar debut next week

19 October 2017 By

The European Stability Mechanism is rumoured to be coming with its debut US dollar issue next week, according to market sources.

Salini Impregilo logo

Salini draws large crowd on crossover appeal

19 October 2017 By

Salini Impregilo is set to price a €500m seven-year trade at 1.75%, becoming the sixth high-yield issuer in 2017 to bring a new issue with a one handle and demonstrating the continued appeal of crossover-like names to investment-grade accounts.

Belfius logo

Belfius back in SNP after only six weeks

19 October 2017 By

Strong issuance conditions tempted Belfius back into the senior non-preferred market just six weeks after its inaugural trade in the format.

bonds

New tights for euro covereds

19 October 2017 By

Bank of Montreal and Helaba sold some of the tightest covered bonds from their respective jurisdictions on Thursday, with the latter setting the spread on its 10-year tap from the outset.

Triple B, Double B US corp bond spreads tighten to post-crisis lows: BAML

19 October 2017 By

The average spread over Treasuries of Triple B and Double B US corporate bonds tightened to post-financial crisis lows on Wednesday, according to data from Bank of America Merrill Lynch.

Singapore Exchange (SGX) sign

SGX and Nasdaq sign pact for concurrent listings

19 October 2017 By

Singapore Exchange and Nasdaq have signed a collaborative listing agreement to encourage companies to concurrently or sequentially list on both the exchanges.

MOVES-Tham joins Varde Partners

19 October 2017 By

Veteran banker Kevin Tham has joined US hedge fund Varde Partners as managing director.

MOVES-Morgan Stanley promotes Peck to Australia IB co-head

19 October 2017

Morgan Stanley has promoted Julian Peck to co-head of investment banking in Australia, effective immediately.

MOVES-Former ANZ MD joins Avista

19 October 2017

Vinay Agrawal has joined boutique investment bank Avista Advisory Group as managing director in Singapore.

MOVES-Minsheng HK hires Wang to head syndicated finance team

19 October 2017

China Minsheng Banking Corp’s Hong Kong branch has hired Sheau Huei Wang to head its syndicated finance team.

MOVES-HSBC Australia makes senior appointments

19 October 2017

HSBC Australia said on Wednesday it had named Guy Dickinson head of global markets and treasurer and Joseph Arena head of global trade and receivables finance.

MOVES-US bond group bolsters legislative, regulatory staff

19 October 2017 By

The Bond Dealers of America on Wednesday said that it has beefed up its federal legislative and regulatory policy staff with two new hires and a promotion.

Prosper Marketplace office

Prosper tightens guidance on consumer loan ABS

18 October 2017 By

Online lender Prosper Marketplace pulled in guidance on its US$501.05m consumer loan ABS on Wednesday, with all three of the deal’s tranches heard to be at least twice covered.

Winner Joey Chestnut competes in Nathan's Famous Fourth of July International Hot Dog-Eating Contest at Coney Island in Brooklyn, New York City, U.S., July 4, 2017

Investors gobble up Nathan's Famous bond

18 October 2017 By

Hot-dog chain Nathan’s Famous found plenty of appetite for its second junk bond sale in two years on Wednesday, as investors scrambled to get in on the offering.

All Latest news

Gulf of difference

IFR 2205 14 October to 20 October 2017

No Qatari borrowers have accessed the public bond markets since Saudi Arabia and three allies accused the country in June of backing terrorism – a charge Doha denies – and imposed trade restrictions as a result.

Top News

A woman makes a transaction at an ATM outside a Eurobank branch in Athens

Eurobank the next Greek bank bearing bonds?

IFR 2205 14 October to 20 October 2017 By

Eurobank could be the next Greek lender in line to return to the capital markets after a well-received covered bond issue from National Bank of Greece, seen as a first step towards achieving sustainable capital markets funding for the country’s banking system.

Qatar flag

QIIB seeks to break Qatari impasse

IFR 2205 14 October to 20 October 2017 By

The first public international bond issue from a Qatari entity since Saudi Arabia and its allies cut diplomatic ties with their Gulf neighbour edged closer last week after Qatar International Islamic Bank readied a US$2bn programme.

BMW

BMW revs up Dim Sum market

IFR 2205 14 October to 20 October 2017 By

German vehicle maker BMW has breathed life into the offshore renminbi sector with the first public Dim Sum bonds from a multinational corporate in more than two years.

Graduates

UK government in a bind over £4.1bn student loan sale

IFR 2205 14 October to 20 October 2017 By

The UK government faces a dilemma over whether to proceed with a landmark sale of £4.1bn of student loans, the first in a series of transactions it hopes will raise £12bn for the exchequer over the next four years.

Garena

Sea sets off for US at low tide

IFR 2205 14 October to 20 October 2017 By

Sea, a Singapore-based gaming and e-commerce company, is pitching its US IPO at a smaller than expected US$596m–$696m to overcome the lack of familiarity of US investors with South-East Asian issuers - and its own weak financials.

Novo Banco headquarters in Lisbon

Forgive and forget? Novo Banco plans €400m Tier 2

IFR 2205 14 October to 20 October 2017 By

Novo Banco is planning to raise €400m of Tier 2 capital in the market, which would be its first bond issue since a rescue package was agreed earlier this year.

HelloFresh

HelloFresh steps out of Blue Apron's shadow

IFR 2205 14 October to 20 October 2017 By

HelloFresh’s IPO barely got going in late 2015 with the meal kit company quietly shelving the float after pre-marketing showed the €2.6bn valuation achieved on the previous funding round was pie in the sky.

 European Central Bank (ECB) headquarters

ECB to meet banks to clarify leveraged rules

IFR 2205 14 October to 20 October 2017 By

The ECB has scheduled a round of meetings with banks to explain its guidance on leveraged transactions which is due to be implemented on November 16.

Nicolas Maduro

Buchheit calls for post-Maduro 'standstill'

IFR 2205 14 October to 20 October 2017 By

Any incoming regime in Venezuela replacing the current president, Nicolas Maduro, will have to consider how to gain temporary relief from paying its creditors without giving them legal grounds to accelerate their outstanding debts, according to legal experts.

Micron Technology headquarters

Micron loads up with US$1.2bn stock sale

IFR 2205 14 October to 20 October 2017 By

Micron Technology surprised investors with an upsized US$1.2bn stock sale that strengthens the memory chipmaker’s balance sheet and preserves offshore cash should long-awaited US tax reforms put in place a repatriation holiday.

IFR Magazine Top News in Full (subscription required)

People & Markets

ECM helps Citi, but FICC resumes freefall

IFR 2205 14 October to 20 October 2017

Citigroup came within a hair of outperforming JP Morgan in equity underwriting in the third quarter as big banks again relied on investment banking fees to pick up the slack while trading revenues stagnate.

HSBC picks John Flint to complete new top duo

IFR 2205 14 October to 20 October 2017

HSBC Holdings has picked John Flint, who has run its retail and wealth management business for almost five years, to replace Stuart Gulliver as chief executive in February.

Ashley Alder, Chief Executive Officer of Hong Kong Securities and Futures Commission, addresses the Pan Asian Regulatory Summit by Thomas Reuters in Hong Kong, China.

Hong Kong probes "reckless" IPO behaviour

IFR 2205 14 October to 20 October 2017

Hong Kong’s securities regulator has sent a warning to investment banks that it is investigating 15 firms that sponsored IPOs for “substandard work”, including some “reckless” behaviour.

Chinese President Xi Jinping speaks during a briefing on the final day of the Belt and Road Forum, at the Yanqi Lake International Conference Centre, north of Beijing.

Global banks staff up for Belt and Road

IFR 2205 14 October to 20 October 2017

International banks including Citigroup, HSBC and Standard Chartered are staffing up as they look to grab business linked to China’s Belt and Road initiative.

Weak returns a worry for 10 major banks - IMF

IFR 2205 14 October to 20 October 2017

Ten of the world’s biggest banks, including Citigroup, Barclays and Deutsche Bank, are struggling to get their profitability above their cost of equity as they have been slower to adopt a successful business model than rivals.

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    Bonds

    EIB breaks records

    IFR 2205 14 October to 20 October 2017

    The European Investment Bank broke records this week, attracting the largest orderbook for a sovereign, supranational and agency US dollar deal seen this year.

    Italy's Carige confident bond swap will go through

    IFR 2205 14 October to 20 October 2017

    Banca Carige’s debt swap offer is likely to go through, the Italian lender said on Thursday, after preliminary results showed bondholders had tendered €455m worth of notes.

    Dufry and Empark swoop on hot market

    IFR 2205 14 October to 20 October 2017

    Dufry and Empark speeded up their trades and priced inside talk as investors lapped up the Double-B credits on offer and bankers rushed to close books.

    In market after earnings

    IFR 2205 14 October to 20 October 2017

    A day after beating earnings expectations last Thursday, Citibank and JP Morgan Chase were out with self-led bond offerings last Friday.

    Walmart sees stores of demand for new US dollar bond

    IFR 2205 14 October to 20 October 2017

    Investors lined up for Walmart’s first US dollar bond since 2014, with orders reaching US$15.8bn for the US$6bn deal, according to one of the leads.

      More from Bonds

      Loans

      SoftBank Group Corp Chairman and CEO Masayoshi Son attends a news conference in Tokyo, Japan.

      Lenders ready to back SoftBank

      IFR 2205 14 October to 20 October 2017 By Wakako Sato

      SoftBank Group’s ¥2.6trn (US$23bn) refinancing – Asia’s largest syndicated loan – is expected to generate enough interest from both domestic and international lenders, despite its size and junk status credit rating.

      Qantas gets innovative for funds

      IFR 2205 14 October to 20 October 2017 By Anshuman Daga

      Qantas Airways is raising a A$350m (US$272m) loan that allows it to switch the types of aircraft used as collateral in, what bankers and analysts say is, the world’s first aviation financing of this type.

      ChemChina mulls tighter takeout

      ChemChina mulls tighter take-out

      IFR 2205 14 October to 20 October 2017 By Carol Zhong

      China National Chemical Corp (ChemChina) is looking for big-ticket commitments on a US$5.5bn refinancing of Syngenta acquisition debt, despite questions over its Swiss unit’s mounting legal costs.

       European Central Bank (ECB) headquarters

      ECB to meet banks to clarify leveraged rules

      IFR 2205 14 October to 20 October 2017 By

      The ECB has scheduled a round of meetings with banks to explain its guidance on leveraged transactions which is due to be implemented on November 16.

      Hong Kong: Victory City returns for refi

      IFR 2205 14 October to 20 October 2017

      Hong Kong-listed Victory City International Holdings is back for a HK$2.6bn-equivalent term loan to refinance a HK$2.89bn-equivalent facility from nearly two years ago.

      Hong Kong: Shui On Centre closes refi

      IFR 2205 14 October to 20 October 2017

      Shui On Centre has signed a HK$4.9bn (US$628m) five-year term loan with eight lenders.

      Hong Kong: Minsheng FL back for more

      IFR 2205 14 October to 20 October 2017

      Minsheng Financial Leasing is coming back to the market for a US$164m pre-delivery payment facility after obtaining an increased US$335m three-year bullet loan in April.

      China: Ten on shipbuilder's loan

      IFR 2205 14 October to 20 October 2017

      A debut US$200m three-year financing for Yangzijiang Shipbuilding (Holdings) has been allocated after 10 banks joined in general syndication.

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      Equities

      Anchor tranche glitch mars IEX IPO

      Anchor tranche glitch mars IEX IPO

      IFR 2205 14 October to 20 October 2017

      In an embarrassing and unprecedented about-turn in the Indian IPO market, Indian Energy Exchange had to freeze out foreign investors from its Rs10bn (US$152m) float after custodians flagged a rule that precluded their participation.

      US: Protagonist confidentially markets US$60m raise

      IFR 2205 14 October to 20 October 2017

      Financings by biotechs are inherently predictable, with positive results in the lab, leading to stock price run-up, and stock sale to continue the cycle.

      UK: REIT aims for £300m

      IFR 2205 14 October to 20 October 2017

      M7 Multi-Let REIT is targeting £300m in an AIM IPO, with a minimum deal size of £147m. Pricing is set at 100p.

      Spain: Shareholders back Liberbank cash call

      IFR 2205 14 October to 20 October 2017

      Shareholders with 68% of the voting rights approved Liberbank’s €500m rights issue at an EGM last week, with 99.9% of those present nodding the capital increase through.

      US: Biotech IPOs keep coming

      IFR 2205 14 October to 20 October 2017

      Allena Pharmaceuticals, an orphan drug company focused on chronic kidney disease treatments, laid the groundwork for its upcoming IPO by pre-marketing the deal.

      Belgium: Founders to boost VGP liquidity with re-IPO

      IFR 2205 14 October to 20 October 2017

      The largest shareholder in Belgian property group VGP is set to sell around half his stake in a move that will significantly increase liquidity in the dual-listed shares.

      Denmark: Dong wilts after Goldman withdraws

      IFR 2205 14 October to 20 October 2017

      Investors that bought Dong Energy as part of Wednesday’s clean-up sale by Goldman Sachs felt some pain the following day when the share price failed to hold the pricing level despite a relatively stable market backdrop.

      Finland: Terveystalo trades up after full upsizing

      IFR 2205 14 October to 20 October 2017

      EQT opted for a full upsizing in the number of shares sold in Terveystalo’s Nasdaq Helsinki float, taking the deal size on completion to €762m and making it the largest Finnish IPO since Sonera in 1998. The IPO launched with fixed pricing of €9.76 and €100m of primary shares to be used for growth including acquisitions and for financial flexibility.

      More from Equities

      Derivatives

      HSBC picks John Flint to complete new top duo

      IFR 2205 14 October to 20 October 2017 By

      HSBC Holdings has picked John Flint, who has run its retail and wealth management business for almost five years, to replace Stuart Gulliver as chief executive in February.

      WM Housing finds home for bonds

      IFR 2205 14 October to 20 October 2017

      WM Housing was welcomed back with open arms last Friday in its first public deal since 2012, pricing a £280m 31-year senior secured on over £850m of demand.

      Mountain of orders for low-rated Montepio

      IFR 2205 14 October to 20 October 2017

      Caixa Economica Montepio’s first euro covered bond benchmark since 2009 extended a strong run for Southern European issuers in the sector despite the weakness of its credit profile.

      Treasury urges US harmony on swaps rules

      IFR 2205 14 October to 20 October 2017 By

      The US Treasury Department has urged the two agencies responsible for overseeing the US$483trn over-the-counter swaps market to harmonise rules and plug gaps that still exist more than eight years after the G20 called for greater transparency in the world of derivatives.

      ICE freezes plan to run ISDA CDS panel

      IFR 2205 14 October to 20 October 2017 By

      Attempts to restore confidence in credit default swaps suffered a setback last week as calls for greater transparency in the framework for determining whether contracts pay out coincided with the breakdown of an agreement on the administrator of the process.

      More from IFR Derivatives

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      Special Reports

      IMF/World Bank Report IFR+IMF+Report+2017+Cover+web
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      From the practice of placing a bell around the neck of a castrated ram to lead the flock

      Poly filler

      IFR 2205 14 October to 20 October 2017

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