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Saturday, 18 August 2018

Contagion contained

IFR 2247 18 August to 24 August 2018

As the markets opened in London on Monday it seemed as though all hell was about to break loose across the emerging markets.

Top News

Turkey

Crisis puts Turkish loans on hold

IFR 2247 18 August to 24 August 2018 By ,

Turkey’s deepening financial crisis is threatening efforts by its banks to refinance existing syndicated loans as financial institutions bear the brunt of the plunging lira and political turmoil.

A camel owner stands next to his camel as he waits for the start of the Camel Beauty Contest in the town of Selcuk, near the western Turkish coastal city of Izmir

Turkey contagion risks contained - for now

IFR 2247 18 August to 24 August 2018 By

Signs of contagion from Turkey’s deepening financial crisis flickered last week, though the emerging markets largely withstood worries of a widespread sell-off.

A man is silhouetted in front of Nio cars at the auto show, in Shanghai, China.

Electric car start-up kicks off US IPO

IFR 2247 18 August to 24 August 2018 By

Chinese electric vehicle maker Nio kicked off a US$1.8bn New York listing last week, pressing ahead with plans to go public even as the founder of US peer Tesla was drawing up plans to go private.

 A Royal Bank of Scotland branch

Crisis-era mortgage probe nears end with RBS settlement

IFR 2247 18 August to 24 August 2018 By

A multi-year investigation by US regulators into the role that big banks played in creating toxic mortgage securities nearly a decade ago is now drawing to a close.

KKR

KKR eats Wall Street's lunch with First Data fee take

IFR 2247 18 August to 24 August 2018 By

KKR’s growing capital markets arm sent another shot across the bow of Wall Street banks by collecting the biggest share of the underwriting fees on Monday night’s US$1.52bn sell-down of a portion of the private equity firm’s stake in payments processor First Data.

People visit the Bund in front of Shanghai's financial district of Pudong in Shanghai, China.

China defaults spread to LGFVs

IFR 2247 18 August to 24 August 2018 By

A state-run organisation tasked with defending China’s western border missed a payment on Rmb500m (US$72m) of onshore notes last week, triggering arguably the first bond default from a local government financing vehicle.

Goldman Sachs sign

Goldman backs blockchain developer

IFR 2247 18 August to 24 August 2018 By

Goldman Sachs has made a significant further investment in a provider of blockchain technology for use in the capital markets. The investment bank led a US$32m financing round with US fintech investor Nyca Partners in Axoni. Goldman representative Ashwin Gupta will join the company’s board.

Legislation

Clifden's Fairhold raid fails in High Court

IFR 2247 18 August to 24 August 2018 By

Activist investor Clifden’s attempt to raid Fairhold Securitisation suffered a comprehensive defeat in the High Court after its purported appointment of administrators was declared void and injunctions granted to prevent it or its director, Rizwan Hussain, from taking any further similar action without a court order and 72 hours’ notice.

IFR Magazine Top News in Full (subscription required)

People & Markets

Who's moving where

IFR 2247 18 August to 24 August 2018

Lazard has hired Michael Skelly as a senior adviser in its financial advisory group focused on energy, sustainability and infrastructure. He will be based in Houston and New York. Skelly is the founder and chairman of a renewable energy infrastructure company called Clean Line Energy Partners. Skelly founded the firm in 2009, and was president until 2018. He will remain chairman of the firm in addition to his work with Lazard. The company’s sole focus is on the development of its Grain Belt Express project.

MacMahon heads to Santander in global FIG role

IFR 2247 18 August to 24 August 2018

Santander Corporate & Investment Banking has appointed Alexandra MacMahon as global head of its financial institutions group.

Barclays shifts ownership of European branches to Irish unit

IFR 2247 18 August to 24 August 2018

Barclays has begun shifting direct ownership of its French, German and Spanish branches from a British-based entity to its Irish bank, according to sources with direct knowledge of the plans, ahead of Britain’s exit from the European Union.

UK Treasury allows full access to Co-op Bank review

IFR 2247 18 August to 24 August 2018

The UK government has said it will grant full access to documents concerning the collapse of the Co-op Bank to those carrying out an independent review into the lender, which ended up being taken over by its bondholders last year via a £700m recapitalisation exercise.

Banks benefit from FX market recovery

IFR 2247 18 August to 24 August 2018

Smaller banks that have adopted new electronic trading systems look to be taking market share from larger banks in the FX market, traditionally one of the biggest providers of investment banking revenues.

    More from People & Markets

    Bonds

    Thailand: ThaiBev brews biggest baht bond

    IFR 2247 18 August to 24 August 2018

    Thai Beverage is returning to the baht market with an ambitious plan to raise at least Bt70bn (US$2.1bn) in Thailand’s largest corporate bond issue, just five months after its latest Bt50bn financing.

    OCBC reopens Singapore AT1

    IFR 2247 18 August to 24 August 2018

    Oversea-Chinese Banking Corporation tapped into pent-up demand from Singapore’s private banking community last Thursday with the city’s first sale of Additional Tier 1 capital in more than a year.

    People walk past an electronic board showing Japan's Nikkei average (L), the Dow Jones average (C), and the exchange rates between the Japanese yen and the U.S. dollar outside a brokerage in Tokyo, Japan.

    Euroyen placements pick up

    IFR 2247 18 August to 24 August 2018

    The yen bond market is drawing the attention of global issuers ranging from Goldman Sachs to German chemical firm BASF as Japanese investors look for long-dated assets.

    Pedestrians walk past the logo of ING bank by the group's main office in Brussels, Belgium.

    ING joins Aussie covered ranks

    IFR 2247 18 August to 24 August 2018

    ING Bank (Australia) revived the country’s flagging domestic covered bond market with a well-received A$1bn (US$725m) dual-tranche three and five-year debut offering that is likely to encourage further issuance.

    China: Hydoo taps 2020 bonds for US$27m

    IFR 2247 18 August to 24 August 2018

    China-based trade centre developer Hydoo International Holding (B3/B–/B–), has agreed to sell an additional US$27m of 12.00% two-year US dollar notes it issued in May to a single investor, according to a stock exchange filing.

      More from Bonds

      Loans

      Turkey

      Crisis puts Turkish loans on hold

      IFR 2247 18 August to 24 August 2018 By ,

      Turkey’s deepening financial crisis is threatening efforts by its banks to refinance existing syndicated loans as financial institutions bear the brunt of the plunging lira and political turmoil.

      Ahsan Iqbal, Pakistan's Minister of Planning and Development, speaks during the launch ceremony of the China-Pakistan Economic Corridor (CPEC) long-term cooperation plan in Islamabad, Pakistan.

      Chinese banks rethink Pakistan loans

      IFR 2247 18 August to 24 August 2018 By Yan Jiang

      Chinese banks are increasingly wary about lending to Pakistan as emerging market currency volatility threatens the incoming coalition government’s efforts to close an external financing gap, amid mounting US opposition to a possible IMF bailout.

      Verscend wraps US$3.165bn loan

      IFR 2247 18 August to 24 August 2018

      Healthcare data analytics company Verscend Technologies wrapped its US$3.165bn term loan after widening pricing.

      Travel Leaders wraps term loan

      IFR 2247 18 August to 24 August 2018

      Travel agency Travel Leaders Group has finalised terms on a US$628.6m term loan backing the purchase of Brontel Exclusive Travel and the refinancing of its US$528.6m term loan.

      UK: CareTech taps for Cambian buy

      IFR 2247 18 August to 24 August 2018

      British social care services firm CareTech Holdings has agreed to buy rival Cambian Group in a deal that could be valued at up to £372m, as it looks to bolster its child care business.

      Nigeria: MTN signs N200bn loan

      IFR 2247 18 August to 24 August 2018

      Telecoms company MTN Nigeria has signed a N200bn (US$636m) loan with a consortium of 12 local lenders to fund capital expenditure and working capital.

      UK: Petrofac nets US$300m

      IFR 2247 18 August to 24 August 2018

      Oil and gas services company Petrofac has secured US$300m of bank facilities with existing relationship banks.

      US: Prospect Capital ups RCF

      IFR 2247 18 August to 24 August 2018

      Prospect Capital increased its revolving credit facility commitments and reduced pricing.

      More from Loans

      Equities

      China: Chong Hing announces rights issue

      IFR 2247 18 August to 24 August 2018

      Hong Kong-listed Chong Hing Bank plans to raise about HK$5.15bn (US$656m) from a non-underwritten rights issue.

      China: Rights issue hits Everbright shares

      IFR 2247 18 August to 24 August 2018

      Hong Kong-listed China Everbright International’s shares fell last Tuesday after it announced a plan to raise HK$9.96bn (US$1.27bn) from a rights issue.

      China: Weidai files for NYSE IPO

      IFR 2247 18 August to 24 August 2018

      Weidai, a Chinese provider of financing services to small businesses, has registered with the SEC for a NYSE listing to raise about US$100m.

      China: CooTek files for NYSE IPO

      IFR 2247 18 August to 24 August 2018

      Chinese software developer CooTek has applied to the SEC to launch an NYSE IPO to raise about US$100m.

      China: 111 files for US$200m US IPO

      IFR 2247 18 August to 24 August 2018

      Chinese online pharmacy and health service platform 111 has made a public filing to the SEC for an IPO to raise US$200m.

      China: ANE Logistics plans US IPO

      IFR 2247 18 August to 24 August 2018

      ANE Logistics, backed by private equity firms including Carlyle and Warburg Pincus, plans to raise about US$500m from a US IPO in 2019, according to people familiar with the situation.

      China: Meituan Dianping seeks listing approval

      IFR 2247 18 August to 24 August 2018

      Meituan Dianping, an online services provider, is set to seek a listing hearing this week for a Hong Kong IPO of at least US$4bn, according to people close to the deal.

      Australia: Ausdrill announces A$250m entitlement offer

      IFR 2247 18 August to 24 August 2018

      Australian diversified mining company Ausdrill has opened books for an entitlement offer of about A$250m (US$181m). The company is selling 170m new shares at A$1.47 each on a 1-for-2.13 basis. The price represents a 14% discount to the pre-deal level.

      More from Equities

      Phones

      Pharol targets up to €150m in rights issue

      17 August 2018 By

      Portuguese telecommunications company Pharol is planning to place nearly 953m new ordinary shares in a rights issue that could raise between €70m and €150m.

      The MV Maersk Mc-Kinney Moller, the world's biggest container ship

      ECM loses out as Maersk dribbles Total shares into the market

      17 August 2018 By

      Danish shipping company AP Moller-Maersk will return “a material amount” of its US$5bn in Total shares as a dividend to shareholders after spinning off its drilling business in 2019, but the prospect of a series of bumper accelerated bookbuilds seems slim.

      Starwood Property Trust pulls bond sale: sources

      17 August 2018 By

      Real estate company Starwood Property Trust has pulled a US$300m junk bond sale that was expected to price this week, three sources familiar with the matter told IFR on Friday.

      IFR SNAPSHOT-From manic to mellow, IG volume grew this week

      17 August 2018 By

      It went from manic to mellow in the IG primary this week. Starting the week with 10 deals and ending on Thursday with two deals, total weekly issuance was pushed to US$28.850bn and monthly issuance to US$75.015bn.

      MOVES-Gandhi leaves Deutsche for AnaCap

      17 August 2018 By

      Vikram Gandhi, a director in Deutsche Bank’s capital solutions group, has resigned from the German lender to join AnaCap, according to sources.

      An IHOP restaurant

      Dine Brands scraps securitisation refinancing

      17 August 2018 By

      Dine Brands, the parent company of Applebee’s and IHOP restaurants, said on Friday it was no longer pursuing a refinancing of its whole business securitisation that was issued in 2014.

      A camel owner stands next to his camel as he waits for the start of the Camel Beauty Contest in the town of Selcuk, near the western Turkish coastal city of Izmir

      Lira stable as US threatens further sanctions

      17 August 2018 By

      The different strands of the Turkey crisis continue to play out.

      Atlantia

      S&P places Atlantia on CreditWatch negative after bridge collapse

      17 August 2018 By Stephen Jewkes

      (Reuters) Standard & Poor’s said on Thursday it had placed its BBB+ rating on Italian toll-road operator Atlantia on CreditWatch negative following the deadly collapse of a bridge in Genoa.

      Dagong Global Credit Rating

      Dagong suspended from rating onshore bonds for one year - NAFMII

      17 August 2018 By

      Dagong Global Credit Rating has been suspended from rating non-financial bonds in China’s interbank bond market for one year over conduct that breached local regulations.

      A security guard walks under a logo of Overseas-Chinese Banking Corp Ltd (OCBC) at the company's headquarters in Singapore.

      OCBC reopens Singapore AT1

      17 August 2018 By

      Oversea-Chinese Banking Corporation tapped into pent-up demand from Singapore’s private banking community on Thursday with the city’s first sale of Additional Tier 1 capital in over a year.

      AT&T

      AT&T rings up unusual long five-year floater

      16 August 2018 By

      AT&T surprised investors on Thursday with an unusual US$3.75bn senior floating-rate deal maturing in June 2024 that was partly driven by reverse enquiries from investors.

      MOVES-Morgan Stanley hires Wilson from JP Morgan

      16 August 2018 By

      Morgan Stanley hired Larry Wilson from JP Morgan naming him managing director for equity derivatives sales in New York, according to sources at the bank.

      The logo of Rabobank is seen on the building of its headquarters in Utrecht

      Rabobank outlines SNP target as debut draws nearer

      16 August 2018 By

      Rabobank expects to raise €3bn-€5bn of senior non-preferred debt (SNP) annually, with the first such trade to emerge in the second half of 2018, as it looks to meet new rules requiring banks to build layers of loss-absorbing debt.

      Lloyds

      Lloyds back in Swiss after seven years with debut holdco

      16 August 2018 By

      Wednesday saw Lloyds return to the Swiss franc market for the first time since early 2011, with a Lloyds Banking Group senior unsecured issue that marked its debut holdco level bond in the currency.

      IFR SNAPSHOT-AT&T comes a calling to a quiet IG primary

      16 August 2018 By

      Just two issuers are slated for the IG primary on Thursday, as the market continues to pace itself after a hectic start to the week.

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

      MOVES-Credit Agricole hires for Scandi DCM

      16 August 2018 By

      Credit Agricole has hired Nils Colldahl to run its Scandinavian financial institutions and debt capital markets business, according to sources.

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      Beckett

      Secondary loan supply increases as IFRS 9 bites

      By David Beckett, head of Europe, SC Lowy

      Participants in the secondary loan market are eyeing the possibility that more supply will be up for sale from banks as the IFRS 9 accounting regime is expected to be applied with rigour in its first year.

      All Commentary

      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

      ​Funding secured

      IFR 2247 18 August to 24 August 2018

      GOLDMAN SACHS HEADS the lists of Wall Street institutions relieved that Elon Musk didn’t dream up his plan to take Tesla private while “off his tits on LSD” (an allegation made by rapper Azealia Banks, but denied by the great man).