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Wednesday, 24 October 2018

Mexico airport bonds slip ahead of consultation

23 October 2018 By

Bonds issued to fund a new Mexico City airport have dipped multiple points in recent days as the incoming government consults on whether to continue construction.

UPDATE 2-Netflix pushes long-term debt load to almost US$11bn

23 October 2018 By

Streaming giant Netflix raised near US$2bn of debt in the high-yield bond market on Tuesday in a deal that will help fund the company for a decade.

Orchard Rx IPO draws early interest

23 October 2018

Orchard Rx, a UK-based gene therapy company targeting so-called “bubble boy” disease, plans to raise up to US$213m from a Nasdaq IPO launched early Tuesday.

Spain

Arima share price falters on Madrid debut

23 October 2018 By

Trading in Spanish REIT Arima Real Estate shares was light on debut on Tuesday, as expected for a new fund listing, with fewer than 50,000 shares trading, representing 0.5% of the 10m shares placed in the IPO.

A worker walks amidst high purity aluminium ingots

Qatar Petroleum launches IPO of Qatar Aluminium

23 October 2018 By

Qatar Petroleum will sell 49% of Qatar Aluminium Manufacturing through an IPO that aims to raise QR2.76bn (US$758m).

A Swedish Saab Gripen fighter jet rolls along the taxiway during a media presentation

Saab proposes SKr6bn rights issue

23 October 2018 By

Swedish defence company Saab is planning a SKr6bn (US$665m) rights issue before the end of the year to bolster its finances amid strong demand that has led to a record order backlog.

Logo of the Japan Bank for International Cooperation

JBIC sticks to tried and tested, EIB flies

23 October 2018 By

Japan Bank for International Cooperation joined the US dollar primary fray on Tuesday, sticking to its tried-and-tested dual- tranche approach, as the European Investment Bank was putting the final touches to an over twice subscribed no-grow US$3bn transaction.

Netflix logo

Netflix launches two-part 10.5-year bond

23 October 2018 By

Netflix launched its two-part 10.5-year high-yield bond deal on Tuesday at wider pricing levels than initially expected, according to a lead.

USA

Aqua plans up to US$2.5bn equity raise for Peoples purchase

23 October 2018 By

Pennsylvania-based water utility Aqua America plans to permanently finance its US$4.3bn acquisition of natural gas distributor Peoples in part by raising US$2.2bn-$2.5bn of equity, including some portion of convertible equity.

Credit Mutuel Arkea

Arkea reaps fives demand, SCBC takes "Tinder" approach

23 October 2018 By

Arkea Home Loans SFH drew €1.3bn of orders for a €750m long five-year covered bond on Tuesday, its maturity proving key, while Swedish Covered Bond Corporation pushed out longer with an opportunistic seven and 15-year duo.

A man walks past a Danske bank branch in Riga

Bleak outlook for Danske AT1s while fines up in the air

23 October 2018 By

Danske Bank’s Additional Tier 1 bonds have probably over-reacted to evidence of money laundering, according to CreditSights, but uncertainty over potential fines means they are unlikely to recover in the short term.

IFR SNAPSHOT-Turbulent stock market dampens IG issuance

23 October 2018 By

Except for one lone taxable muni issue, the IG primary is staying on the sidelines today, as stock market volatility dominates the arena.

Cyber security

Summit Partners cash in Avast shares

23 October 2018 By

Investors quickly snapped up 5.5% of Czech cybersecurity firm Avast on Monday, as long-term shareholder Summit Partners sold shares in an accelerated bookbuild to raise £144.5m.

EnBW logo

EnBW preps debut Green bond

23 October 2018 By

EnBW was wrapping up the second and final day of the roadshow for a debut Green issue on Tuesday, its first bond since 2016.

Sivantos logo

Sivantos switches to loans to finance merger

23 October 2018 By

(LPC) Hearing aid maker Sivantos has dropped its plan to issue a bond and instead opted for a €600m loan to finance its merger with peer Widex.

The headquarter of the European Bank for Reconstruction and Development (EBRD) is seen in London

Improving economics lure EBRD to sterling, more to follow

23 October 2018 By

The European Bank for Reconstruction and Development is bringing its first fixed-rate sterling bond in over four years, drawn by the better funding costs offered in the currency.

All Latest news

Hail to the chief

IFR 2256 20 October to 26 October 2018

Another cash-burning company – this time Uber – has pulled off a junk bond sale. But it’s not necessarily a sign that the high-yield market is bonkers.

Top News

Uber

Uber's quiet ride into bond market paves way for IPO

IFR 2256 20 October to 26 October 2018 By ,

Ride-hailing service Uber Technologies saw success with its debut bond deal, attracting more than 50 investors to the deal that some see as another stepping stone to going public.

Disney bonds

Disney surprises market with early debt exchange

IFR 2256 20 October to 26 October 2018 By

Media giant Walt Disney caused a stir in the market with a complex debt exchange that might have left investors holding illiquid debt for months if they had not pushed back.

A Turkish flag is pictured on a boat with the Bosphorus bridge in the background

Turkey chooses cautious comeback

IFR 2256 20 October to 26 October 2018 By

Turkey passed a major test with its comeback trade to the international bond markets on Tuesday, though bankers were puzzled by the choice of a five-year tenor, which was seen as defensive.

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

Italy stays at home as volatility flares

IFR 2256 20 October to 26 October 2018 By ,

The Republic of Italy turned to the safety of its domestic retail market to raise funding last week, as the volatility that has stalked markets for weeks showed little sign of letting up.

Berkshire Hathaway

StoneCo's IPO gets Buffett boost

IFR 2256 20 October to 26 October 2018 By

Warren Buffett’s Berkshire Hathaway will take nearly one-third of the shares offered as part of fast-growing Brazilian payments processor StoneCo’s US$1.1bn Nasdaq IPO. The anchor order has shored up the deal amid signs that the US new issue window may be closing.

Saudi Aramco

Aramco loan on ice amid Saudi backlash

IFR 2256 20 October to 26 October 2018 By , ,

A US$50bn-$70bn loan to back oil and gas giant Saudi Aramco’s purchase of a stake in Sabic is expected to be put on ice after the disappearance – and apparent murder – of a Saudi journalist erupted into a political row and hit the investment climate in the kingdom.

Kazatomprom.jpg

EM IPOs try their luck

IFR 2256 20 October to 26 October 2018 By

Emerging market companies now dominate live EMEA IPOs as issuers in developed markets have largely postponed flotation plans amid difficult markets. The high proportion of EM deals is unusual as such transactions typically have the lowest chance of success in periods of volatility.

A view shows the Standard & Poor's building in New York's financial district.

S&P flags 'Titanic' LGFV risks

IFR 2256 20 October to 26 October 2018 By

Offshore bond supply from Chinese local government financing vehicles continued to ramp up last week, despite a warning of rising default risks in the sector from global rating agency S&P.

People walk past a major branch of HSBC at the financial Central district in Hong Kong, China.

HSBC ponders China listing – again

IFR 2256 20 October to 26 October 2018 By

HSBC is considering issuing Chinese depositary receipts through the Shanghai-London Connect scheme, potentially making it the first company to issue CDRs under the new trading link as regulators gear up for its launch by year-end.

IFR Magazine Top News in Full (subscription required)

People & Markets

Goldman, Morgan Stanley take the cake

IFR 2256 20 October to 26 October 2018

Investment banking revenue was flat across the five largest US banks in the third quarter, but beneath the calm top-line number Goldman Sachs and Morgan Stanley outperformed rivals to win market share.

Despite stumble, FICC on course to beat 2017

IFR 2256 20 October to 26 October 2018

Fixed income trading is on course for a better year than 2017 across the five largest US banks despite a weak performance in the third quarter.

Wells Fargo opts for Paris as France woos traders

IFR 2256 20 October to 26 October 2018

US bank Wells Fargo has applied for an investment firm licence from the French regulator to create a Paris hub for its investment banking and capital markets activity in the European Union after Brexit.

Hennebry leaves Deutsche to run Santander DCM

IFR 2256 20 October to 26 October 2018

Santander has hired Conor Hennebry to head its European debt capital markets business, according to market sources, the latest in a string of hires by the Spanish lender.

Stop 'window dressing' leverage ratios, banks told

IFR 2256 20 October to 26 October 2018

Banks have been warned not to “window dress” their leverage ratios – or manipulate figures at the end of the quarter to indicate they have a higher ratio than usual.

    More from People & Markets

    Bonds

    Malaysia: Politics spooks bonds

    IFR 2256 20 October to 26 October 2018

    Uncertainty over the fate of big infrastructure projects sponsored by Malaysia’s last government is holding back domestic bond issues as the new administration of Prime Minister Mahathir Mohamad grapples to rein in M$1trn (US$243.9bn) of federal debt.

    Graft case rocks Lippo Karawaci

    IFR 2256 20 October to 26 October 2018

    Lippo Karawaci’s offshore bonds sold off after Indonesia’s anti-corruption agency said that company officials had been detained in connection with an alleged bribery case.

    Hordes snap up DBM's solo bond

    IFR 2256 20 October to 26 October 2018

    Development Bank of Mongolia drew a blowout book for its first offshore bond offering without a government guarantee, reflecting solid investor confidence in the country’s economic reforms.

    India: Stability lures back Indian issuers

    IFR 2256 20 October to 26 October 2018

    Top-rated Indian issuers such as Reliance Industries and Housing Development Finance Corp returned to the domestic bond market this month, taking advantage of renewed stability following coordinated efforts from the government and central bank to settle the market.

    Kazakhstan: Republic plans international return

    IFR 2256 20 October to 26 October 2018

    Kazakhstan has mandated banks for an international bond offering, according to people familiar with the matter.

      More from Bonds

      Loans

      A Hong Kong dollar coin is seen in this illustration photo May.

      Rising Hibor pressures lenders

      IFR 2256 20 October to 26 October 2018 By , Apple Lam

      Higher Hong Kong interbank rates are curbing banks’ appetite to lend and boosting interest margins on Hong Kong dollar loans amid fears of a potential liquidity crunch.

      Saudi Aramco

      Aramco loan on ice amid Saudi backlash

      IFR 2256 20 October to 26 October 2018 By , ,

      A US$50bn-$70bn loan to back oil and gas giant Saudi Aramco’s purchase of a stake in Sabic is expected to be put on ice after the disappearance – and apparent murder – of a Saudi journalist erupted into a political row and hit the investment climate in the kingdom.

      Hong Kong: Minmetals Land obtains HK$3.5bn

      IFR 2256 20 October to 26 October 2018

      Hong Kong-listed Minmetals Land has self-arranged a HK$3.5bn (US$449m) four-year club loan.

      Hong Kong: Pricing out for Huafa club

      IFR 2256 20 October to 26 October 2018

      A HK$1bn (US$128m) three-year club term loan for Zhuhai Huafa Group is offering an interest margin of 208bp over Hibor and an upfront fee of 138bp.

      China: SPIC extends bridge maturity

      IFR 2256 20 October to 26 October 2018

      State Power Investment Corp has secured approval from all lenders to extend the maturity of a US$400m one-year bridge loan, winning itself more time to work on a bond issue to refinance the loan.

      Elivie completes €360m refi

      IFR 2256 20 October to 26 October 2018

      French healthcare company Elivie has finalised a €360m loan to refinance its existing unitranche facility.

      Germany: Bechtle nets debut €300m SSD

      IFR 2256 20 October to 26 October 2018

      IT services provider Bechtle has placed a debut €300m Schuldscheindarlehen via BayernLB, Commerzbank and LBBW.

      TDC to slash leverage

      IFR 2256 20 October to 26 October 2018

      Danish telecoms group TDC intends to pre-pay around DKr15bn-equivalent (US$2.3bn) of its existing Term Loan B facilities, including the entire €1.2bn-equivalent US dollar-denominated tranche.

      More from Loans

      Equities

      Malaysian investors play chicken

      IFR 2256 20 October to 26 October 2018

      The Malaysian franchisee of KFC and one of South-East Asia’s largest poultry producers are targeting IPOs at local institutions early next year, aware that foreign investors might chicken out in the current volatile market environment.

      A man cycles past a delivery truck containing crates of San Miguel in Sta Cruz, Manila in Philippines.

      San Miguel pares follow-on target

      IFR 2256 20 October to 26 October 2018

      Weak emerging markets and liquidity concerns have prevented San Miguel’s sale of shares in subsidiary San Miguel Food and Beverage from becoming the largest ever equity capital market transaction in the Philippines.

      South Africa: Kropz launches London AIM listing

      IFR 2256 20 October to 26 October 2018

      Phosphate producer Kropz has launched a London AIM listing, with reports suggesting a deal size of around £50m.

      South Africa: Old Mutual sells Nedbank stock to complete unbundling

      IFR 2256 20 October to 26 October 2018

      Old Mutual completed its unbundling from Nedbank at the beginning of last week, reducing its stake to 19.9% from 52%.

      UK: Foresight beats target for acquisition fundraising

      IFR 2256 20 October to 26 October 2018

      Foresight Solar Fund has raised £58m for a portfolio of assets, exceeding the original target of £34m.

      UK: Triple Point modestly upsizes acquisition fundraising

      IFR 2256 20 October to 26 October 2018

      Triple Point Social Housing REIT has slightly exceeded its fundraising target, picking up £108.15m versus a goal of £103m, to be deployed in a pipeline of planned acquisitions.

      UK: Smithson smashes target with £822.5m IPO

      IFR 2256 20 October to 26 October 2018

      There is beating the target, and then there is raising £822.5m versus an original goal of £250m.

      Germany: TTL Beteiligungs sets terms for capital increase

      IFR 2256 20 October to 26 October 2018

      Real estate group TTL Beteiligungs und Grundbesitz has set terms but not pricing for a pre-placing and capital increase that could total around €52m, with primary proceeds to be used for growth, including acquisitions.

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      Special Reports and Roundtables

      IFR US ECM Roundtable 2018 IFR+US+ECM+Roundtable+2018+Cover+Image
      IFR held its US ECM Roundtable on September 13 as stock market indices were nearing historic highs. Investors were showing greater resolve to chase performance by participating in ECM transactions not only in the public markets but in private as well.

      IFR IMF/World Bank Report 2018 IFR+IMF+2018+Cover+page
      If there is one thing that characterises both the International Monetary Fund and the World Bank, it is, by their very nature, their internationalism. Their results over their 70-odd-year histories have been achieved through collaboration – the greater the collaboration, the better the result.

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

      Twickenham roadshow

      IFR 2256 20 October to 26 October 2018

      THE KNACK OF a successful bond issue is to engage with investors in extensive pre-marketing and then time the execution of the trade to perfection.