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Saturday, 21 July 2018

Deal or no deal

IFR 2243 21 July to 27 July 2018

There’s no doubt about it: Europe has too many banks. At the last count, there were more than 3,000 European banking institutions.

Top News

Buyout loans slump in secondary

Buyout loans slump in secondary

IFR 2243 21 July to 27 July 2018 By

A group of European leveraged loans that were completed earlier this year are trading below their issue price and weighing on the market after a surge in supply in the early summer helped investors to secure higher primary loan pricing from deals with stronger documentation.

David Solomon, Goldman Sachs

Goldman Sachs names Solomon CEO

IFR 2243 21 July to 27 July 2018 By

Goldman Sachs named David Solomon its new chief executive officer effective October 1 after accelerating the departure of long time CEO Lloyd Blankfein. Solomon will grab Blankfein’s other title, chairman of the board, on January 1, 2019.

Britain-Diamond-2010

Bob Diamond: I quit after becoming 'lightning rod'

IFR 2243 21 July to 27 July 2018 By

Former Barclays boss Bob Diamond said he considered fighting the Bank of England when it said he needed to resign in 2012, but opted not to because he had become “a lightning rod” for the bank’s troubles.

Daniele Nouy,

Banks and regulators in stand-off over consolidation

IFR 2243 21 July to 27 July 2018 By ,

European banks and their regulators are locked into a high-stakes game of “who blinks first?” when it comes to possible consolidation within the banking sector, with each waiting for the other to make the first move in what many see as a long-overdue process.

Spain

Spain spearheads surge in European NPL sales

IFR 2243 21 July to 27 July 2018 By

Sales of non-performing loans by banks in Europe are surging, with another mega-deal from Spain’s Sabadell arriving last week, as pressure to continue cleaning balance sheets and strong private equity buying interest encourages deals.

Ascletis Pharma Inc. Marketing Director Frank Huang, Chairman and CEO Jinzi J. Wu and Vice President Chen Yi attend a news conference on the IPO of the company in Hong Kong, China.

Hot demand for landmark biotech IPO

IFR 2243 21 July to 27 July 2018 By

A strong response to the HK$3.59bn (US$457m) Hong Kong IPO of Ascletis Pharma, the city’s first under new rules accommodating early-stage biotech companies, is setting a positive tone for at least nine other such deals this year.

First project loan CLO hits Asia

First project loan CLO hits Asia

IFR 2243 21 July to 27 July 2018 By

Singapore’s Clifford Capital last week began marketing a groundbreaking securitisation of project finance loans, which aims to free up capital for banks and give institutional investors access to a new asset class.

Default spurs buyside rethink

China default spurs buyside rethink

IFR 2243 21 July to 27 July 2018 By

The shock offshore default of China Energy and Reserve Chemicals Group could force one of the country’s biggest institutional investors to be more cautious towards its investments in offshore Chinese bonds.

A man walks outside a commercial building at the financial Central district in Hong Kong, China.

Asia bond buyers play hardball

IFR 2243 21 July to 27 July 2018 By

Some asset managers have resorted to a new trick to win concessions in Asia’s ailing US dollar bond market: holding new issues to ransom.

IFR Magazine Top News in Full (subscription required)

People & Markets

Goldman sees FICC revival, but stalls in equities

IFR 2243 21 July to 27 July 2018

Bond trading is back - maybe. Across the five largest US investment banks, fixed income trading is again looking like it will shake off a multi-year slump, although there have been false dawns before.

Morgan Stanley shines in M&A and ECM

IFR 2243 21 July to 27 July 2018

Morgan Stanley and Goldman Sachs continued to brawl for the title of top M&A investment bank in the second quarter with both banks claiming the mantle.

Goldman Sachs takes lead in LatAm ECM

IFR 2243 21 July to 27 July 2018

Goldman Sachs is riding high this year in Latin America’s equity capital markets, where it has soared up the league tables to lead competitors after clinching several key mandates.

Boillereau leaves HSBC amid FX, commodities rejig

IFR 2243 21 July to 27 July 2018

Frederic Boillereau, who headed foreign exchange, commodities and global markets corporate services at HSBC, has left the bank following a decision to overhaul the way his business is set up.

Deutsche halts revenue crash

IFR 2243 21 July to 27 July 2018

Deutsche Bank expects to report second-quarter net profit well ahead of forecasts, a rare piece of good news as Germany’s largest lender cuts jobs and costs to try to restore profitability.

    More from People & Markets

    Bonds

    Developers won't be put upon

    IFR 2243 21 July to 27 July 2018

    Chinese property developers are offering juicy step-ups on onshore puttable bonds to relieve growing refinancing pressures, but the sweeteners are not swaying domestic investors worried about rising default risks.

    China: Developers turn to buybacks

    IFR 2243 21 July to 27 July 2018

    While many high-yield Chinese property developers are battling to maintain their access to the international capital markets, others are buying back their securities in an unusual bid to bolster investor confidence.

    Hong Kong: Hang Lung debuts Panda bonds

    IFR 2243 21 July to 27 July 2018

    Hang Lung Properties printed Rmb1bn (US$150m) Green Panda bonds in China’s interbank bond market - the first Panda bonds from a developer in three months.

    ME Bank readies prime RMBS

    IFR 2243 21 July to 27 July 2018

    Members Equity Bank has mandated ANZ, CBA, Macquarie and NAB for a potential Australian dollar prime RMBS offering under the SMHL programme.

    Pepper to launch dual-currency RMBS

    IFR 2243 21 July to 27 July 2018

    Non-bank lender Pepper Group has released initial price guidance for an A$700m equivalent non-conforming offering of US dollar and Australian dollar Pepper PRS 21 RMBS.

      More from Bonds

      Loans

      Buyout loans slump in secondary

      Buyout loans slump in secondary

      IFR 2243 21 July to 27 July 2018 By

      A group of European leveraged loans that were completed earlier this year are trading below their issue price and weighing on the market after a surge in supply in the early summer helped investors to secure higher primary loan pricing from deals with stronger documentation.

      A man works at a transmission tower in Kakogawa, Hyogo Prefecture, Japan.

      Biomass boost for Japanese project finance

      IFR 2243 21 July to 27 July 2018 By Wakako Sato

      Japan’s project finance industry is embracing alternative forms of renewable energy as the country broadens its energy mix and prioritises clean fuels.

      Loan rush for China non-banks

      Loan rush for China non-banks

      IFR 2243 21 July to 27 July 2018 By

      China Citic Bank’s overseas investment banking unit is poised to make its debut in the offshore loan markets with a US$500m facility, the latest of several financings for non-banking subsidiaries of Chinese banks.

      Citi shuffles Asia levfin team

      IFR 2243 21 July to 27 July 2018 By

      Citigroup has announced changes to its loan and acquisition finance team in Asia-Pacific, including the hires in Australia of Alok Jhingan and Simon Marrison.

      Saudi Arabia: Maaden unit amends, refinances

      IFR 2243 21 July to 27 July 2018

      Maaden Bauxite and Alumina Company, a subsidiary of Saudi Arabian Mining Company (Maaden), has amended and refinanced US$2.1bn-equivalent of debt.

      US: Altria markets US$3bn refi

      IFR 2243 21 July to 27 July 2018

      Tobacco company Altria Group is in the market with a US$3bn five-year credit facility that will amend and extend an existing facility of the same size and tenor.

      South Africa: Vukile lines up €257m for Spain buy

      IFR 2243 21 July to 27 July 2018

      Real estate investment trust Vukile Property Fund’s acquisition of a portfolio of Spanish shopping centres is being backed with around €257m of senior debt from European banks.

      Italy: Tecnimont agrees €185m refi

      IFR 2243 21 July to 27 July 2018

      Engineering and construction company Maire Tecnimont subsidiary Tecnimont has agreed a €185m loan refinancing.

      More from Loans

      Equities

      SGX set for first dual-class IPO

      IFR 2243 21 July to 27 July 2018

      Singapore Exchange could see its first dual-class share listing later this year as Jubilant Pharma, a unit of India’s Jubilant Life Sciences, mulls such a structure for an IPO of up to US$500m.

      China: Cango rolls out NYSE IPO

      IFR 2243 21 July to 27 July 2018

      Cango, a provider of automotive transaction services in China, has started bookbuilding for a US$150m NYSE IPO.

      China: E-House raises HK$4.64bn from IPO

      IFR 2243 21 July to 27 July 2018

      E-House (China) Enterprise has raised HK$4.64bn (US$591.2m) from a Hong Kong IPO that it priced at the bottom of the indicative range.

      China: Fosun Pharma builds war chest

      IFR 2243 21 July to 27 July 2018

      Shanghai Fosun Pharmaceutical (Group) has raised HK$2.6bn (US$331m) from an H-share placement.

      China: Ganfeng to launch IPO post-summer

      IFR 2243 21 July to 27 July 2018

      Shenzhen-listed Ganfeng Lithium is planning to launch its Hong Kong IPO of up to US$1bn after the summer, when it hopes lithium prices will be more stable, people close to the deal said.

      China: Books covered for Pinduoduo’s IPO

      IFR 2243 21 July to 27 July 2018

      The books of Chinese online group discounter Pinduoduo’s Nasdaq IPO of up to US$1.63bn were covered on Wednesday, according to people close to the deal.

      China: Tower IPO aims big

      IFR 2243 21 July to 27 July 2018

      Mobile phone infrastructure company China Tower is planning to raise up to US$8.75bn from a Hong Kong IPO at a valuation of up to US$35bn, according to people close to the deal.

      China: Xiaomi IPO reaches US$5.4bn as three exercise 'shoes

      IFR 2243 21 July to 27 July 2018

      Bankers have exercised the greenshoes in full on a trio of Hong Kong IPOs, led by the jumbo float of Xiaomi.

      More from Equities

      UniCredit says EBA rejects Caius' request for 'CASHES' inquiry

      20 July 2018 By Valentina Za

      UniCredit said on Friday the European Banking Authority had rejected a request by Caius Capital to look into complex financial instruments which the British hedge fund says are wrongly included in the Italian bank’s capital.

      BMC Software logo

      High-yield eyes BMC Software buyout bond

      20 July 2018 By

      The summer slowdown in high-yield seems to be well and truly under way, but there could be a sizeable buyout deal on the horizon that may help set a level for where more leveraged deals will be priced.

      Markit logo

      Rising star grabs investor attention with M&A bond

      20 July 2018 By

      Investors dived into data firm IHS Markit’s debut high-grade bond on Thursday, proceeds of which will be used to fund the company’s purchase of financial data provider Ipreo.

      IFR SNAPSHOT-IG supply seen ebbing next week

      20 July 2018 By

      With investors gorging themselves on FIG issuance this week, the level of supply is expected to drop next week.

      MOVES-Boillereau leaves HSBC following business rejig

      20 July 2018 By

      Frederic Boillereau, who headed foreign exchange, commodities and global markets corporate services at HSBC, has left the bank following a decision to overhaul the way his business is set up.

       A Royal Bank of Scotland branch

      MOVES-RBS hires HSBC's Fletcher as chief risk officer

      20 July 2018 By

      Royal Bank of Scotland has hired Bruce Fletcher from HSBC as its group chief risk officer, following the planned departure of David Stephen.

      A traffic light shines red near the HSBC bank logo in Paris

      HSBC fined over "systemic deficiencies" in bond sales

      20 July 2018 By

      Hong Kong’s securities regulator has fined HSBC HK$9.6m (US$1.2m) for “systemic deficiencies” in its bond selling practices.

      The Kangaroo returns

      Basis swap moves could trigger Kangaroo bounce

      20 July 2018 By

      The Kangaroo market may be set for an upturn in financial and corporate issuance after short-end funding pressures in the US contributed to significant shifts in Australian/US dollar cross-currency basis swap levels.

      Rwater.jpg

      ABS investors snap up blast of summer supply

      19 July 2018 By

      Investors were undaunted by the US$15bn deluge of new asset-backed bond supply on tap for this week, which is expected to mark a record summer week for issuance.

      Goldman Sachs sign

      Goldman Sachs takes lead in LatAm ECM

      19 July 2018 By

      Goldman Sachs is riding high so far this year in Latin America’s equity capital markets, where it has soared up the league tables to lead competitors after clinching several key mandates.

      A Colombian man waves a flag at downtown in Bogota

      Colombia's GEB preps pricing of US$520m equivalent stock sale

      19 July 2018 By

      Colombia’s Grupo Energia Bogota (GEB) is finishing up marketing of an approximately US$520m, all-secondary stock sale, as the local government aims to further privatize the state-controlled utility.

      BNP Paribas

      MOVES-LatAm DCM veteran leaves Nomura for BNP Paribas

      19 July 2018 By

      LatAm debt capital markets veteran Andre Silva has left Nomura to join BNP Paribas, a source told IFR.

      US Federal Reserve building

      Fed's Libor alternative gaining acceptance

      19 July 2018 By

      In just a few months of existence, the secured overnight financing rate (SOFR) is gaining traction as a viable alternative to replace the London Interbank Offered Rate, or Libor, when it ceases to exist in 2021, the New York Fed and an industry panel said on Thursday.

      Barge

      Harley Marine's ABS rattled by battle over company control

      19 July 2018 By ,

      A battle for control over Harley Marine Services has sent spreads dramatically wider on the tug and barge company’s only asset-backed bond deal, but ratings agency KBRA said on Thursday there is no evidence of increased credit risk.

      UBS logo

      UBS names new heads of ECM for EMEA and Americas

      19 July 2018 By

      Gareth McCartney has been promoted at UBS to run equity capital markets in EMEA while Brad Miller and Michael O’Donovan will lead the expansion of ECM in the Americas, in the first changes made by recently installed global head of ECM Javier Martinez-Piqueras.

      Citi sign

      MOVES-Khater leaves Citi syndicate

      19 July 2018 By

      Sabine Khater has left Citigroup, where she was a vice president for corporates on the fixed income syndicate desk, to move back to Beirut, according to sources.

      All Latest news

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      IFR/Save the Children

      A tale of two tragedies

      A tale of two tragedies

      It is difficult to imagine that the already heartbreaking predicament of two peoples, the Ethiopians and the Rohingya, could get even worse. Yet the current weather is delivering more hardship to both.

      Special Reports and Roundtables

      IFR Green Financing Roundtable 2018 IFR+Green+Financing+Roundtable+2018+Cover
      The IFR Green Financing Roundtable, sponsored by the European Investment Bank, Luxembourg Stock Exchange, and White and Case, welcomed a panel of experts in green finance to discuss recent developments in Green bonds and other instruments, and to outline the next steps that need to be taken as issuance becomes more widespread.

      IFR ECM Roundtable 2018 IFR+ECM+RT+2018+Cover+
      Thomson Reuters IFR’s 2018 ECM Roundtable took place in London on April 11. It was a fascinating moment-in-time discussion that covered general market matters but more specifically looked under the bonnet of deal management and tactics, and how to get transactions over the line in the challenging environment the year had become.

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

      Life is tweet

      IFR 2243 21 July to 27 July 2018

      LLOYD BLANKFEIN WAS not present on Goldman’s Q2 earnings call to take the plaudits as his departure was officially confirmed. But no matter because, as regular readers will know, Lloyd is a millennial these days and likes to own the message himself.