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Tuesday, 24 April 2018

AT&T

AT&T to redeem £1bn as bond exchange fails to arouse interest

24 April 2018 By

AT&T has said it will redeem entirely its £1bn 3.55% 2037 notes, part of cash and exchange offers for some of the debt it issued last year to finance the Time Warner deal, as investors chose to let a 101 cash price special mandatory redemption kick in.

MOVES-Oppenheimer hires new MD for LatAm DCM

24 April 2018 By

Carlos Vargas has been hired at investment bank Oppenheimer as managing director of debt capital markets, Latin America, a person familiar with the matter told IFR.

KfW

KfW gets stuck

24 April 2018 By

KfW fell short of fully selling a US dollar benchmark on Tuesday, with orders on the US$1bn May 2022 only passing the US$725m mark at the last update.

Caja Rural de Navarra logo

Caja Rural de Navarra to issue second Sustainable covered

24 April 2018 By

Caja Rural de Navarra is returning to the market with its second Sustainable covered benchmark, taking advantage of recent rating upgrades in the Spanish covered sector.

IFR SNAPSHOT: 10 high-grade trades seize spirit of the moment

24 April 2018 By

The 10-year Treasury has finally touched 3% this Tuesday morning, but the rates back-up is having no visible effect on what one banker calls the “untamable” high-grade market.

Ten IG bond deals in spirited market, including Bacardi

24 April 2018 By

At least 10 investment-grade bond deals are expected to price on Tuesday, including four from banks and a US$2.6bn offering from drinks giant Bacardi.

EFSF

EFSF keeps size in check

24 April 2018 By

The European Financial Stability Facility kept a lid on size for its latest foray, a €1.5bn May 2047 tap that offered investors some paper in what has been an undersupplied part of the curve this year.

ECB Exit

Drop in CSPP purchases may signal start of taper

24 April 2018 By

The European Central Bank has roughly halved purchases of corporate bonds in April from the average pace of buying in the first quarter, prompting credit analysts to wonder whether the slowdown is more than a temporary blip.

Zimbabwe's President Emmerson Mnangagwa

Zimbabwe may launch US$3.5bn sovereign bond

24 April 2018 By

(Reuters) Zimbabwe is considering issuing between US$2.5bn and US$3.5bn in sovereign bonds after elections set for July and will use some of the money to clear arrears to foreign lenders, Deputy Finance Minister Terrence Mukupe said on Tuesday.

Sixt Leasing logo

Sixt back for second helping

24 April 2018 By

Sixt Leasing has had a similar lukewarm response for its €250m four-year on Tuesday that a related entity, Sixt, experienced two months ago when a €250m six-year failed to gain momentum.

A Deutsche Bank sign is seen outside of a corporate building in Shanghai's financial district.

MOVES-Deutsche picks veteran Kuhnke as operations chief

24 April 2018 By

Deutsche Bank has picked a 32-year veteran of the bank to take over as chief operating officer when Kim Hammonds leaves next month.

HKEx

Hong Kong bourse gives go-ahead to weighted voting rights

24 April 2018 By

Hong Kong’s bourse today finally gave the go-ahead to controversial rules to allow “innovative” companies with weighted voting rights to IPO in the city.

Passers-by walk in front of a branch of French bank Credit Agricole in Marseille

MOVES-Credit Agricole CIB appoints Dominique head of APAC global markets

24 April 2018

Credit Agricole CIB has appointed Dominique Blanchard as regional head of the global markets division for Asia-Pacific.

Russian national flag

MOVES-Renaissance Capital hires Russia banks analyst

24 April 2018

Renaissance Capital, the Russian investment bank focused on emerging markets, has hired Ivan Kachkovski as a research analyst covering banks in Russia.

Lopez Obrador, presidential candidate for the PRD, greets supporters as he arrives to a rally

An AMLO win is only partly priced into stocks: report

23 April 2018 By

Mexican equities have only partly priced the risk of a victory for leftist presidential candidate Andres Manuel Lopez Obrador (AMLO) in the July 1 election, Barclays said in a report on Monday.

Moelis logo

Moelis revenue up 27% in record quarter

23 April 2018 By

Investment bank Moelis reported first quarter revenue of US$219.4m up 27% from the year ago quarter – its best quarter ever.

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Mizzed opportunity

IFR 2230 21 April to 27 April 2018

As mishaps go, this was as high-profile as it gets.

Top News

A man walks past a logo of Mizuho Financial Group in Tokyo

Mizuho missed Saudi and Qatar bonds after forgetting to pick a side

IFR 2230 21 April to 27 April 2018 By ,

Losing an underwriting slot at the last minute on one US$10bn-plus sovereign bond deal is bad enough, but losing two is nothing less than a disaster.

A researcher holds pipette tips on a holder at a work for developing assay to detect a specific gene of corn at a lab in Syngenta Biotech Center in Beijing, China.

WuXi AppTec's IPO to raise just Rmb2.25bn as China's tech push meets A-share valuation cap

IFR 2230 21 April to 27 April 2018 By ,

China’s first high-profile “new economy” IPO since regulators unveiled plans to attract more technology listings underscores the challenges of going public in the domestic market.

A combination file photo shows Wells Fargo, Citigbank, Morgan Stanley, JPMorgan Chase, Bank of America,

Right kind of volatility: equity trading surge saves first quarter for US banks

IFR 2230 21 April to 27 April 2018 By

The five largest US banks rode a wave of volatility to a record setting haul in equity trading in the first quarter, reaping a combined US$9.5bn of revenue, up 34% from the year before.

Sanofi logo

Lenders make a beeline for €1bn-plus Zentiva financing

IFR 2230 21 April to 27 April 2018 By

Goldman Sachs, JP Morgan and Morgan Stanley are in line to lead a financing in excess of €1bn to back private equity firm Advent International’s acquisition of European generic drugs company Zentiva, as other banks vie to win a spot on the aggressive deal, undeterred by its high leverage.

Nicolas Maduro

Venezuela bondholders inch towards showdown

IFR 2230 21 April to 27 April 2018 By , Maiya Keidan, Corina Pons

Investors holding billions of dollars in defaulted Venezuelan bonds have formed at least one bondholder committee that is seeking a financial adviser, several sources said, in a sign they may be gearing up for a legal dispute.

AXA

US$3.8bn bond from AXA's US unit paves way for listing

IFR 2230 21 April to 27 April 2018 By ,

The US unit of French insurer AXA raised US$3.8bn from a three-part debut bond last week that lays the groundwork for a NYSE IPO that could end up as the largest US listing of the year.

A balloon flies behind clouds

US$560m DocuSign deal heads tech IPO queue

IFR 2230 21 April to 27 April 2018 By

E-signature company DocuSign last week launched a US$560m IPO that joins a robust calendar of US cloud computing deals seeking to exploit hefty valuations in the sector.

A backdrop displays the title of Bond Connect at Hong Kong Exchanges in Hong Kong, China.

China issuers warm to Bond Connect

IFR 2230 21 April to 27 April 2018 By

Chinese issuers are increasingly targeting global investors for domestic bond offerings, as they look to take advantage of growing demand for onshore renminbi securities to broaden their investor relationships.

The company logo of United Company RUSAL is displayed during a news conference in Hong Kong

Banks assess Rusal options

IFR 2230 21 April to 27 April 2018 By

Lenders to Rusal are exploring how to get rid of their exposure to Russian aluminium company before a May deadline set by the US, as the fallout from fresh US sanctions pulls Russian loan pricing lower in Europe’s secondary market.

AT&T

AT&T disconnects spin-off of LatAm pay TV unit

IFR 2230 21 April to 27 April 2018 By

AT&T cancelled the IPO of its Latin America and Caribbean pay TV unit Vrio last week rather than accept a deeply discounted valuation.

IFR Magazine Top News in Full (subscription required)

People & Markets

Goldman, Morgan Stanley outshine rivals

IFR 2230 21 April to 27 April 2018

Morgan Stanley and Goldman Sachs bucked the slumping trend in investment banking revenues shown by their bigger money centre bank rivals in the first quarter, aided by a strong showing from Goldman in underwriting.

Bonds for retail investors plummet after MiFID II

IFR 2230 21 April to 27 April 2018

Issuance of low denomination bonds has collapsed this year as new European Union trading rules appears to have left underwriters wary of falling foul of tighter rules on marketing products to retail investors.

BAML picks Mensah to head EMEA

IFR 2230 21 April to 27 April 2018

Bank of America Merrill Lynch has promoted Bernie Mensah, co-head of fixed income trading, to head its business in Europe, Middle East and Africa, filling the position left vacant by Alex Wilmot-Sitwell’s decision to leave.

Who's moving where

IFR 2230 21 April to 27 April 2018

UK GOVERNMENT INVESTMENTS, the body that manages the government’s stake in Royal Bank of Scotland, has hired Charles Donald as head of financial institutions. Donald joined from Credit Suisse, where he was vice-chairman of UK advisory and corporate broking. He was previously co-head of CS’s UK investment banking division – at the time a colleague of both James Leigh-Pemberton, now deputy chairman of UKGI, and Ewen Stevenson, now finance director at RBS. Donald’s main task will be to start the sale of Britain’s 71% stake in RBS.

Watchdog takes bite at bad apples

IFR 2230 21 April to 27 April 2018

Financial firms need to be more rigorous when interviewing potential employees to make sure they do not hire “bad apples” with a record of misconduct who move from job to job without disclosing previous issues, the Financial Stability Board said.

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    Bonds

    The logo of SoftBank Group Corp is displayed at SoftBank World 2017 conference in Tokyo, Japan.

    SoftBank clears way for IPO

    IFR 2230 21 April to 27 April 2018

    SoftBank Group has raised US$2.5bn-equivalent from dual-currency bonds to help release guarantee obligations ahead of the planned public listing of its telecoms unit SoftBank Corp.

    Unrated Iliad dials dual-trancher

    IFR 2230 21 April to 27 April 2018

    Unrated French telecoms company Iliad jumped in with a €1.15bn dual-tranche outing last Wednesday, the day after holding an investor call.

    KommuneKredit back in style in sterling

    IFR 2230 21 April to 27 April 2018

    KommuneKredit returned to the sterling market with panache last week, pricing its first new line in the currency since 2015 alongside a liability management exercise that was the first buyback of sterling paper by an agency.

    Unilever announces €6bn max share buyback in May

    IFR 2230 21 April to 27 April 2018

    Unilever said in its first-quarter results announcement it intends to start a share buyback programme of up to €6bn in May to return expected after-tax proceeds from the disposal of its spreads business.

    Canadian regulator to reconsider covered issuance limit

    IFR 2230 21 April to 27 April 2018

    The 4% limit currently imposed on the amount of covered bonds that Canadian banks can issue could be changed this year by the regulator.

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      Loans

      ONGC targets onshore dollars

      IFR 2230 21 April to 27 April 2018 By

      India’s biggest oil explorer Oil and Natural Gas Corp is looking to raise US$1bn in the onshore market, in the first big deal to target foreign-currency deposits with domestic lenders.

      Sanofi logo

      Lenders make a beeline for €1bn-plus Zentiva financing

      IFR 2230 21 April to 27 April 2018 By

      Goldman Sachs, JP Morgan and Morgan Stanley are in line to lead a financing in excess of €1bn to back private equity firm Advent International’s acquisition of European generic drugs company Zentiva, as other banks vie to win a spot on the aggressive deal, undeterred by its high leverage.

      Citigroup veteran Vanderslice departs for Cantor

      IFR 2230 21 April to 27 April 2018 By

      Paul Vanderslice has left Citigroup after nearly three decades to head the real estate securities arm of Cantor Fitzgerald, a person familiar with the matter told IFR.

      SC Lowy, UOB AM shelve CLO plan

      IFR 2230 21 April to 27 April 2018 By

      Hong Kong-based credit trading firm SC Lowy and Singapore’s UOB Asset Management have dropped plans for a US$400m collateralised loan obligation due to waning investor appetite.

      Austria: Verbund bags first digital Green SSD

      IFR 2230 21 April to 27 April 2018

      Electricity company Verbund has closed a €100m 10-year Schuldscheindarlehen, becoming the first company to issue a Green SSD on a digital, blockchain-capable platform.

      GTT markets US$2.1bn deal

      IFR 2230 21 April to 27 April 2018

      Cloud networking company GTT Communications launched approximately US$2.1bn of loans to support its purchase of London-based rival Interoute, and to refinance debt.

      MFG launches £1.5bn loans

      IFR 2230 21 April to 27 April 2018

      Motor Fuel Group has launched £1.476bn-equivalent of loans backing its acquisition by MRH, one of several larger buyout deals due to come to market in the coming weeks.

      Bulgaria: Vivacom refis with €345m loan

      IFR 2230 21 April to 27 April 2018

      Bulgarian Telecommunications Co (Vivacom) has refinanced its existing €400m senior secured bond by drawing down on a €345m syndicated loan that was arranged at the end of 2017.

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      Equities

      CBA spin-off to lift Aussie IPOs

      IFR 2230 21 April to 27 April 2018

      Commonwealth Bank of Australia is set to hand the Australian IPO market a much-needed boost with plans to list its investment management business later this year.

      Malaysia preps post-election IPOs

      IFR 2230 21 April to 27 April 2018

      Bankers in Malaysia are preparing to pull the trigger on IPOs of close to US$5bn once the May 9 federal elections are out of the way.

      UK: Oaktree gets out of Countryside

      IFR 2230 21 April to 27 April 2018

      Oaktree Capital exited its investment in Countryside Properties on Thursday night, selling its remaining 8% stake in the UK homebuilder at 358p, a 3.5% discount to the 371p close. Countryside floated in February 2016 and Oaktree made its first post-IPO selldown in late January 2017, coming to the market again in May and November.

      Finland: Altia mostly exercises greenshoe

      IFR 2230 21 April to 27 April 2018

      There was stabilisation on just the first day of trading for drinks company Altia following its IPO, when the shares finished up at €7.72 versus pricing at €7.50.

      Italy: IDG completes financing for portfolio buy

      IFR 2230 21 April to 27 April 2018

      Retail property group Immobiliare Grande Distribuzione SIIQ completed its €150m rights issue with 98.1% take-up. The fundraising will finance the acquisition of a portfolio of four shopping galleries and a retail park in northern Italy from Eurocommercial Properties.

      Norway: Elkem completes stabilisation

      IFR 2230 21 April to 27 April 2018

      Stabilisation manager Morgan Stanley burnt through 12.1m shares supporting the stock price of Elkem, with the remaining 21.16m shares in the greenshoe exercised for a final deal size of NKr7.89bn (US$1bn). The 15% greenshoe was all-secondary.

      Turkey: Beymen files early guidance

      IFR 2230 21 April to 27 April 2018

      Books are due to open this week for the Istanbul floats of retailers Beymen Magazacilik, SOK Marketler and Defacto with the price range for the former filed with the regulator on Friday.

      Norway: Partial 'shoe exercise for Fjordkraft

      IFR 2230 21 April to 27 April 2018

      There was a partial exercise of the 15% secondary greenshoe for electricity supplier Fjordkraft on Friday, with 2.64m shares exercised out of the 3.23m available. Stabilisation took place over the first three days of trading, when the shares closed flat to the NKr31 IPO price, before shifting up and remaining above water since.

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      Derivatives

      Deutsche links new security to JP Morgan

      IFR 2230 21 April to 27 April 2018 By

      Deutsche Bank introduced an innovative security with the sale on Wednesday of a US$225m, five-year cash-settled exchangeable bond tied to the performance of JP Morgan shares.

      Employees take telephone bids during a contemporary art day auction at Sotheby's in London

      High finance helps hype art sales

      IFR 2230 21 April to 27 April 2018 By

      Art prices have been hitting record highs in recent years, helped in part by dealers and financially savvy collectors making use of financing techniques more commonly seen at investment banks, such as futures trading and asset-backed lending.

      Plug Power pays it forward with US$100m CB

      IFR 2226 24 March to 30 March 2018

      Plug Power believes in its future even as its critics do not.

      Virgin Media revives sterling high-yield

      IFR 2226 24 March to 30 March 2018

      Virgin Media revived the sterling high-yield market with a new receivables financing notes offering last week.

      Euroclear eyes hybrid tranche in second offering

      IFR 2226 24 March to 30 March 2018

      Euroclear Investments is gearing up for a maximum €700m two-part outing that could come this week and will include a hybrid tranche.

      More from IFR Derivatives

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      IFR/Save the Children

      Save the Children STC IFR Awards Watkins Kaplinsky

      Save the Children recognises IFR and financial community

      Save the Children has recognised IFR for its 23 years of support for the charity. 

      Martin Haycock, senior partner, Fisch Asset Management

      Convertible Bonds – A Renaissance

      By Martin Haycock, senior partner, Fisch Asset Management

      Many investors are presently conflicted. The macroeconomic environment supports a positive view on risk assets with growth across much of the world. Yet valuations in debt and equity markets are sufficiently high that investors are nervous about corrections.

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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.

      Kim. Oh no!

      20 April 2018

      THE OUSTING OF John Cryan as Deutsche Bank’s CEO might have been a shock, but the departure of the bank’s chief operating officer Kim Hammonds was only a matter of time.