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Wednesday, 19 September 2018

IFR Awards 2018 logo

IFR Awards 2018: Call for entries

We invite banks to pitch now for the IFR Awards 2018. The IFR Awards Dinner will take place on the evening of Tuesday January 29 2019 in the presence of HRH the Princess Royal, patron of Save the Children. Banks, advisers and issuers wishing to submit pitches should do so by October 15 2018.

Japan Tobacco

Japan Tobacco euro and sterling debuts ignite market

19 September 2018 By

Investors put health warnings to one side and piled into Japan Tobacco International’s debut euro and sterling trades Wednesday.

Farfetch upsizes IPO to US$840m

19 September 2018 By

London-based online fashion e-commerce site Farfetch upped the size of its NYSE IPO by as much as 32% early Wednesday, lifting the size of the deal to as much as US$840m.

Workers clean photovoltaic panels inside a solar power plant in Gujarat, India.

Renewable energy business Neoen files document de base

19 September 2018 By

French renewable energy business Neoen has filed a document de base with a view to a Euronext Paris IPO raising €450m.

Workers cross the Millenium Bridge with the City of London seen behind

Sequoia targets funds for £300m pipeline

19 September 2018 By

Sequoia Economic Infrastructure Fund has identified a near-term pipeline in excess of £300m and has set terms for a partially pre-emptive £200m fundraising.

IFR SNAPSHOT-Five deals on tap in IG primary

19 September 2018 By

The issuance pace slows just a bit on Wednesday, with just five deals slated for the IG primary market.

Toyota logo

Toyota revs up with Dutch unit debut

19 September 2018 By

Toyota revved up with an inaugural benchmark euro transaction from its Netherlands funding unit on Wednesday.

NatWest

NatWest Markets hits short-dated sweet spot

19 September 2018 By

There was no evidence of aversion to UK risk as NatWest Markets returned to the euro market, attracting some €4bn in orders despite offering as little as 5bp in concession at the final level.

Semi-detached houses in Dortmund

Triple Point to fund investment pipeline

19 September 2018 By

Triple Point Social Housing REIT is aiming for £103m from a placing, open offer and offer for subscription, with proceeds being ploughed into an acquisition pipeline.

A man walks past a Danske bank branch in Riga

Danske Bank sub bonds weaken after CEO quits

19 September 2018 By

Danske Bank’s subordinated debt sold off as chief executive Thomas Borgen resigned on Wednesday in a money laundering scandal relating to €200bn flowing through its Estonian branch between 2007 and 2015.

F1 race

Investors reach for yield instead of brakes

18 September 2018 By , ,

Investors drove past warning signs and straight on to the yield of two large junk bond sales separately financing the buyouts of Refinitiv and Akzo Nobel.

EDF

EDF sees push-back in an otherwise buoyant market

18 September 2018 By

Electricite de France proved to be an outlier as it struggled to tighten pricing in an otherwise buoyant day for the US high-grade market, which saw eight deals on Tuesday.

Thomson Reuters Chief Executive Jim Smith speaks about the deal with Blackstone Group in Toronto

Refinitiv bonds move up in secondary

18 September 2018 By

The US junk-rated bonds that will finance Blackstone’s buyout of a 55% stake in Thomson Reuters’ Financial & Risk business - to be renamed Refinitiv - were trading higher in the secondary market on Tuesday, according to two investors.

US Federal Reserve building

New York Fed sells last of Maiden Lane assets

18 September 2018 By

The New York Federal Reserve said on Tuesday that it has sold the last of the once-toxic mortgage and derivative assets from Bear Stearns and American International Group.

Blackstone Group office

Refinitiv four-part high-yield buyout bond prices

18 September 2018 By

The four-part multi-billion junk bond that will help finance the buyout of Refinitiv by Blackstone has priced.

NN Bank logo

NN Bank CPT covered lands 1bp inside NIBC

18 September 2018 By

NN Bank’s €500m 10-year conditional pass-through covered bond priced 1bp inside NIBC’s similar trade from two weeks ago, but the prospect of higher risk-weightings continues to hang over the sector.

Together logo

Together accelerates PIK toggle refinancing

18 September 2018 By

British mortgage lender Together managed to accelerate its refinancing deal as risks in the UK property market loom in the face of a no-deal Brexit.

All Latest news

Overnight sensation

IFR 2251 15 September to 21 September 2018

Just a few years ago, the idea of a US$4.3bn-equivalent overnight equity offering would have been unthinkable in Japan’s capital markets. Last week’s mega block trade in Yahoo Japan is therefore a big step forward.

Top News

Thomson Reuters

US investors take initiativ on Refinitiv

IFR 2251 15 September to 21 September 2018 By ,

The US$13.5bn buyout financing for Refinitiv, the financial data and technology division of Thomson Reuters, has had a strong response from the US loan and bond markets, resulting in an oversubscription and potentially lower pricing.

A worker stands under Union Flags at the Jaguar Land Rover facility in Solihull

Jaguar bond stalls on Brexit talk

IFR 2251 15 September to 21 September 2018 By

Jaguar Land Rover’s high-yield bond was driven off course last week after chief executive Ralf Speth gave a warning that the wrong kind of Brexit could have a disastrous effect on his company. The warning came during the bond’s marketing period and spooked an investor base already unnerved by a loss-making quarter.

A website of Yahoo Japan Corp is seen on a computer screen at a Yahoo! Cafe, a free internet cafe by Yahoo Japan Corp, in Tokyo.

Yahoo block smashes Japan record

IFR 2251 15 September to 21 September 2018 By

A record US$4.3bn block trade in Yahoo Japan has put overnight bookbuilds on the radar for potential vendors looking to dispose of sizable stakes in Japanese companies.

Aston Martin badge

Aston Martin and Funding Circle under starter’s orders

IFR 2251 15 September to 21 September 2018 By

Aston Martin Lagonda and Funding Circle are now running their IPOs on the same timetable, having both begun pre-marketing on Monday. The two IPOs are the first to test the UK’s new listing process where a registration document – a draft prospectus – is published at least seven days ahead of connected analyst research.

Lehman

How Lehman was carved up, and hedge funds won big

IFR 2251 15 September to 21 September 2018 By ,

At 7:56am on September 15, 2008 - four minutes before the market opened on a Monday morning - a judge sitting in a makeshift courtroom in a law office in London’s Silk Street signed a document putting Lehman Brothers’ European operation into administration.

Bob Diamond

Bob's big bet: Barclays' purchase of Lehman Brothers 10 years later

IFR 2251 15 September to 21 September 2018 By

When two days after Lehman Brothers filed for bankruptcy Barclays announced that it was buying the collapsed bank’s prized US investment banking and capital markets business for just US$250m, the deal was widely seen as something of a coup.

HOUSING/FORECLOSURES

The next crisis? Look elsewhere

IFR 2251 15 September to 21 September 2018 By

Securitisation is once again a main artery of consumer finance in the US, a decade after toxic mortgage bonds precipitated a global financing crisis and helped topple Lehman Brothers.

An Italian Army parachutist hoists Italian flag during the Republic Day military parade in Rome

Italian credits pile back into the market

IFR 2251 15 September to 21 September 2018 By ,

Italian companies have taken advantage of improved sentiment towards the country to jump into the bond market over the past two weeks, with their deals greeted with enthusiasm by investors seeking attractive yields.

Thomson Reuters Chief Executive Jim Smith speaks about the deal with Blackstone Group in Toronto

Refinitiv deal wakes ghosts of LBOs past

IFR 2251 15 September to 21 September 2018 By , ,

The return of big buyouts to the leveraged finance market has rekindled memories of the 2006 and 2007 bad old days of risky underwriting and excessive debt.

Deutsche Bank headquarters

Deutsche's Instone ABB falls well short

IFR 2251 15 September to 21 September 2018 By

Deutsche Bank’s attempt to place half of the entire share capital of Instone Real Estate in a matter of hours last Monday was the most audacious trade seen in European ECM for years. It was not entirely surprising then that it flopped with less than two-thirds of the shares sold, leaving the German bank as Instone’s largest shareholder.

IFR Magazine Top News in Full (subscription required)

People & Markets

Goldman taps Waldron as COO, moves CFO

IFR 2251 15 September to 21 September 2018

Goldman Sachs unveiled its third major management shake-up this year as it seeks to revive its fortunes, naming John Waldron as president and chief operating officer and tapping Stephen Scherr as its new chief financial officer.

IMF: sovereign bilateral creditors must collaborate

IFR 2251 15 September to 21 September 2018

International Monetary Fund chief Christine Lagarde said the high debt levels that low-income countries have built up through non-traditional sources are a worry and could complicate debt restructurings.

JP Morgan, Citi see weaker Q3 trading

IFR 2251 15 September to 21 September 2018

JP Morgan and Citigroup offered a dreary outlook for the third quarter with less than three weeks left to save the period. For fixed income, commodities and trading it could spell another year of diminishing revenue as the strong performance in the first half is eroded.

Hong Kong Chief Executive Carrie Lam addresses the Belt and Road Summit in Hong Kong, China.

CLSA plots Belt & Road expansion

IFR 2251 15 September to 21 September 2018

CLSA, the offshore arm of China’s Citic Securities, is looking to open more offices in major outposts along the route of China’s Belt & Road initiative, its chief executive Jonathan Slone said last week.

Who's moving where

IFR 2251 15 September to 21 September 2018

KeyBanc Capital Markets has hired David Mastrangelo from Jefferies as head of technology equity capital markets. Mastrangelo had been at Jefferies since 2011 and ran its technology ECM group. He will report to Terry Schallich, head of KeyBanc’s technology group. KeyBanc, the investment banking arm of KeyCorp, also hired Tom Mazzucco from Jefferies in June for its tech team. Mastrangelo began his investment banking career with Kidder Peabody in 1988 and joined Salmon Brothers in 1994, and in 2000 was named head of TMT ECM at Citigroup.

    More from People & Markets

    Bonds

    Iron Man firm faces stark time

    IFR 2251 15 September to 21 September 2018

    DMG Entertainment and Media, the Chinese company that co-produced Iron Man 3, has defaulted on its onshore bonds after a series of dramatic events that strained its finances.

    South Korea swamped on bond return

    IFR 2251 15 September to 21 September 2018

    Global investors flocked to the Republic of Korea’s US$1bn dual-tranche bond deal last Thursday in a sign that asset managers are stocking up on high-quality credits to ride out the emerging-market turmoil.

    The AT&T logo is seen on a monitor on the floor of the New York Stock Exchange (NYSE) in New York City, U.S.

    AT&T revives Kangaroo market

    IFR 2251 15 September to 21 September 2018

    AT&T (Baa2/BBB/A–) reopened the Kangaroo market for corporate America with a A$1.325bn (US$955m) four-tranche trade via joint lead managers CBA, Deutsche Bank, Mizuho and TD Securities.

    India: IL&FS downgrade sparks panic

    IFR 2251 15 September to 21 September 2018

    The downgrade of Infrastructure Leasing & Financial Services (IL&FS), part of a group credited with building the longest tunnel in India, sent ripples through the credit market last week after rating agencies raised red flags over its ability to repay debt.

    A general view of the main entrance of Prologis logistics complex which Amazon.com Inc is planning to rent in Cajamar, Brazil.

    Prologis showcases yen appeal

    IFR 2251 15 September to 21 September 2018

    US logistics real estate company Prologis highlighted the growing appeal of Global yen debt last week with a long-term fundraising of ¥55.1bn (US$494m) to hedge currency risk for its Japanese assets.

      More from Bonds

      Loans

      Thomson Reuters

      US investors take initiativ on Refinitiv

      IFR 2251 15 September to 21 September 2018 By ,

      The US$13.5bn buyout financing for Refinitiv, the financial data and technology division of Thomson Reuters, has had a strong response from the US loan and bond markets, resulting in an oversubscription and potentially lower pricing.

      Austria: Voestalpine seeks Schuldschein

      IFR 2251 15 September to 21 September 2018

      Steel products group Voestalpine is seeking a €300m-equivalent dual-currency Schuldscheindarlehen that will be used for general corporate purposes, including the refinancing of existing SSD and bonds.

      Austria: FACC nets €225m loan

      IFR 2251 15 September to 21 September 2018

      Aerospace company FACC has agreed a €225m syndicated loan to fund growth.

      Saudi Arabia: PIF agrees US$11bn loan

      IFR 2251 15 September to 21 September 2018

      Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF) has agreed an US$11bn deal with a group of 15 banks.

      Switzerland: Aryzta amends loan

      IFR 2251 15 September to 21 September 2018

      Baker Aryzta is amending its €1.8bn syndicated loan as it prepares to raise €800m in equity to reduce its debt pile.

      US: Caterpillar wraps US$10.5bn loans

      IFR 2251 15 September to 21 September 2018

      Machinery maker Caterpillar has wrapped up US$10.5bn in credit facilities that extend maturities by a year on three tranches.

      Norway: Lyse extends NKr1.5bn loan

      IFR 2251 15 September to 21 September 2018

      Power generation company Lyse has amended and extended its NKr1.5bn (US$180m) syndicated revolving credit facility.

      Colombia: Ecopetrol agrees US$665m loan

      IFR 2251 15 September to 21 September 2018

      State-owned oil company Ecopetrol has agreed a US$665m five-year revolving credit facility.

      More from Loans

      Equities

      Japan claims world’s first Green CB

      IFR 2251 15 September to 21 September 2018

      Timber company Sumitomo Forestry introduced the green concept to the convertible bond market by sealing the world’s first Green CB last week, raising ¥10bn (US$90m) to refinance a New Zealand project.

      Thai IPOs bank on local demand

      Thai IPOs bank on local demand

      IFR 2251 15 September to 21 September 2018

      Thailand may be one of the best performers in the summer’s emerging markets sell-off, but the country’s two biggest listings of the year show no signs of banking on overseas support.

      Senior Vice President Wang Puzhong, CFO and Senior Vice President Chen Shaohui, Co-founder, Chairman and Chief Executive Officer Wang Xing and Co-founder and Senior Vice President Wang Huiwen of China's Meituan Dianping, an online food delivery-to-ticketi

      Meituan priced near top

      IFR 2251 15 September to 21 September 2018

      Chinese online food delivery-to-ticketing services provider Meituan Dianping raised US$4.2bn in the world’s biggest internet-focused IPO in four years as it priced the float near the top end of a marketed range. Meituan, backed by Chinese internet giant Tencent Holdings, sold about 480m primary shares at HK$69 each in the Hong Kong IPO, valuing the company at about US$52.8bn.

      Germany: Westwing launches €120m Frankfurt listing

      IFR 2251 15 September to 21 September 2018

      Online furniture retailer Westwing has launched an all-primary Frankfurt IPO, which aims to secure €120m to fund growth of its platform.

      Eq WIN 2251

      Week in numbers - September 15 2018

      IFR 2251 15 September to 21 September 2018

      Eq WIN 2251 Eq WIN 2251

      Belgium: State chooses to wait

      IFR 2251 15 September to 21 September 2018

      Belgian prime minister Charles Michel said last Monday that the time was not right to partly privatise Belgian bank Belfius, according to Belga news agency.

      UK: GCP targets £55m for Brighton university digs

      IFR 2251 15 September to 21 September 2018

      The UK’s GCP Student Living is raising £55m to fund the construction of a student development at the University of Brighton.

      Netherlands: Prime Ventures exits Takeaway.com in short order

      IFR 2251 15 September to 21 September 2018

      Morgan Stanley completed a brace of accelerated bookbuilds on Wednesday evening; while the €157.2m sell-down in online food delivery service Takeaway.com was a tenth of the size of Adyen, it garnered a similarly strong response from investors.

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      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

      Jamie 1, Donald 0

      IFR 2251 15 September to 21 September 2018

      DESPITE A WAVE of positive publicity on the back of JP Morgan’s status as a post-crisis world beater, Jamie Dimon isn’t interested in taking a victory lap of honour and gloating over the advantage he has established over his rivals – not when he’s got a US Presidential campaign to run.