Friday, 27 November 2015

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IFR German Corporate Funding Roundtable 2015

IFR German Corporate Funding Roundtable 2015

IFR’s latest German Corporate Funding Roundtable, held in Frankfurt on October 15, surveyed the financing and macro landscape not just from the debt and loan capital markets sell-side perspective; senior treasury representatives from three major German-based multinationals – Bayer, Daimler and SAP – additionally offered some fascinating insights into the corporate finance and funding panorama as viewed from the client side.

IFR India Special Report 2015

IFR India Special Report 2015

High expectations: Eighteen months into Narendra Modi’s government, things are looking up for India. Growth is quickening, inflation is under control, and reforms are coming through. Harnessing that momentum, however, remains a constant challenge, and India’s prime minister will need to work hard if he is to come close to meeting his grand ambitions.

All IFR Special Reports

In this week's IFR Magazine


Carlyle Group office in Washington

Botched job

IFR 2110 21 November to 27 November 2015

No two words strike fear into the heart of a leveraged finance banker like “hung deal”. That is precisely what a group of the world’s most prominent investment banks have on their hands, after bungling the US$5.6bn debt sale backing Carlyle Group’s buyout of Veritas.

Top News


Banks on hook after Veritas fiasco

IFR 2110 21 November to 27 November 2015 By , Robert Smith

The US$5.6bn debt sale backing Carlyle Group’s buyout of Veritas collapsed in spectacular fashion last week, leaving the eight underwriting banks hurting from a deal gone horribly wrong.

The company logo of the Bank of America and Merrill Lynch

Banks braced for losses as LBO pipeline stalls

IFR 2110 21 November to 27 November 2015 By Tessa Walsh

Banks are set to take significant losses on a big part of a US$14bn pipeline of leveraged buyout loans for US companies after a US$5.6bn debt financing for software company Veritas was pulled and another loan for retailer Belk struggled.

Volkswagen logo

​VW asks banks for up to €20bn

IFR 2110 21 November to 27 November 2015 By

German car maker Volkswagen is asking its relationship banks for up to €20bn in short-term loans as it seeks to shore up its balance sheet in the wake of the emissions-cheating scandal that has engulfed the company.


Bahrain left counting cost of Gulf woes

IFR 2110 21 November to 27 November 2015 By

The tough new reality of raising money in the Middle East came into sharp focus on Tuesday, when Bahrain was forced to pay a huge new-issue premium to print a US$1.5bn dual-tranche bond.

Alfa-Bank Moscow Russia

Alfa-Bank triumph may not cause flood

IFR 2110 21 November to 27 November 2015 By

Alfa-Bank burst into the market last week with a US$500m deal that priced well inside the issuer’s curve. But despite the deal boasting a healthy orderbook and printing at a time when spreads across Russia are shrinking, bankers are still downbeat on the country.


Sanctions fail to stem access to finance for Russian corporates

IFR 2110 21 November to 27 November 2015 By ,

US and European sanctions are inadvertently providing a boost to the same Russian companies they are supposed to punish, with some in Russia boasting the restrictions have triggered a reworking of the local financial system that has made access to funding cheaper and easier.

Intel logo

Intel follows Apple Down Under

IFR 2110 21 November to 27 November 2015 By

Intel last week unveiled plans for a debut offering of Kangaroo bonds, underlining the Australian dollar’s growing appeal as a global funding currency.


Greek banks get their cash – just

IFR 2110 21 November to 27 November 2015 By

The quartet of Greek bank recapitalisations limped over the line throughout the week, with a covered message for Piraeus Bank finally arriving on Friday afternoon, more than two weeks after the deal was launched.

IFR Magazine Top News in Full (subscription required)

People & Markets

Houlihan Lokey logo

Boutiques create own M&A wave

IFR 2110 21 November to 27 November 2015

Independent advisory houses are creating their own mini-wave of mergers and acquisitions, with some shops taking advantage of their recent listings to finance the purchase of smaller rivals, so beefing up their presence.

 International Capital Markets Association logo

NSFR could be 'destroyer' for European repo

IFR 2110 21 November to 27 November 2015

New net stable funding ratio rules could be a “destroyer” for the European repo market, according to a survey of traders carried out by the International Capital Markets Association.

Credit Suisse headquarters

Credit Suisse reviews roles in NY, London

IFR 2110 21 November to 27 November 2015

Credit Suisse is reviewing senior positions in its global macro products team across its London and New York offices as part of a strategic review of its fixed income division, according to market sources.

DZ Bank headquarters

Bank mergers set for a rebound in 2016

IFR 2110 21 November to 27 November 2015

A rare mega bank merger in Germany is likely to change the trajectory of bank deals in the EMEA this year – which, until that transaction was announced last week, was on pace to have one of the slowest years for putative transactions in more than a decade.

Barclays bank logo

Barclays to pay US$150m more in forex probe

IFR 2110 21 November to 27 November 2015

Barclays will pay an additional US$150m to New York State’s financial regulator to resolve allegations that it rigged foreign exchange trading by putting the bank’s interests ahead of those of its clients.

    More from People & Markets


    An Allied Irish Bank branch

    AIB joins T2 wave with milestone deal

    IFR 2110 21 November to 27 November 2015

    Investors lapped up the first subordinated bond from Allied Irish Banks since it was bailed out by the state in the financial crisis, a milestone deal that bodes well for the state-owned bank’s possible flotation next year.

    European Union flag

    EU eyes tweaks in issuance rules to improve market liquidity

    IFR 2110 21 November to 27 November 2015

    European Union rules for companies raising funds on markets will be changed in a bid to increase liquidity in corporate bond markets, according to a draft EU law seen by Reuters.

    Norske Skog goes it alone for last roll of the debt dice

    IFR 2110 21 November to 27 November 2015

    Norske Skog’s decision to single-handedly launch a distressed exchange on its bonds took market participants by surprise last week, though most think the latest proposals will do little to solve the paper maker’s crippling debt woes.

    ING bank logo

    Budding Green funds snap up rare bank paper

    IFR 2110 21 November to 27 November 2015

    A growing number of Green and sustainability funds gobbled up rare Green financial paper last week, as two new banks joined the handful that have already issued in a sector dominated by SSA issuers.

    Reseau de Transport d’Electricite logo

    RTE sparks demand

    IFR 2110 21 November to 27 November 2015

    Reseau de Transport d’Electricite’s new 10-year encountered blowout demand on Thursday, as deal-hungry investors scrambled to buy new deals in a narrowing pre-Christmas issuance window.

      More from Bonds


      Ferrexpo logo

      Restructurings hit a wall

      IFR 2110 21 November to 27 November 2015 By Sandrine Bradley

      Iron ore producer Ferrexpo is the latest Ukrainian company struggling to restructure its debt after months of talks, as the country remains mired in political and military unrest following Russia’s annexation of Crimea last year.

      Logo of Teva Pharmaceutical Industries

      ​Teva signs jumbo US$31.5bn loans

      IFR 2110 21 November to 27 November 2015 By

      Teva Pharmaceutical Industries has closed and signed US$31.5bn in loans backing its US$40.5bn acquisition of Allergan Generics and the refinancing of an existing credit facility.

      Neiman Marcus sign

      Companies punished for missing earnings estimates

      IFR 2110 21 November to 27 November 2015 By

      The term loans of US companies missing Wall Street expectations in the third-quarter earnings season are being hit hard in the secondary market, as risk-averse investors try to protect their portfolios from declining credit quality.

      US leveraged loan market grows

      Loan market grows 61% since 2010

      IFR 2110 21 November to 27 November 2015 By Kristen Haunss

      The US leveraged loan market has expanded 61% to US$851bn since the start of 2010 as borrowers have taken advantage of near-zero interest rates to issue a record amount of debt, according to Thomson Reuters LPC data.

      Aurizon Holdings logo

      Margins hold tight – for now

      IFR 2110 21 November to 27 November 2015 By Sharon Klyne

      The higher costs of funding for Australia’s domestic banks are having little impact on loan margins as the market grapples with strong demand for deals – at least for now.

      Lam Research office complex

      ​Lam Research finalises KLA-Tencor loan

      IFR 2110 21 November to 27 November 2015

      Semiconductor company Lam Research sealed the financing backing its US$10.6bn acquisition of sector peer KLA-Tencor.

      Molson beer cans

      Molson Coors seeks US$12.3bn

      IFR 2110 21 November to 27 November 2015

      Molson Coors is in the market with US$12.3bn in loans to back its US$12bn acquisition of SABMiller’s 58% stake in US joint venture MillerCoors.

      ​CME refinances US$7bn RCF

      IFR 2110 21 November to 27 November 2015

      Chicago Mercantile Exchange, a subsidiary of CME Group, has signed a US$7bn 364-day multi-currency revolver that replaces a deal of the same size and maturity.

      More from Loans



      Year-end rush of IPOs

      IFR 2110 21 November to 27 November 2015

      At least seven Chinese companies plan to wrap up Hong Kong listings, totalling US$4.4bn, before the Christmas holidays, giving a late boost to an IPO market still recovering from summer’s heightened volatility.

      Overhead cranes are seen at India's Cochin Shipyard

      India set for first state IPO since 2012

      IFR 2110 21 November to 27 November 2015

      The Indian government is spicing up its privatisation programme with the first IPO from a state-owned enterprise in three years, at a time when secondary offerings in better-known stocks are drawing a jaded response.

      Scandic hotel

      Sweden: Scandic IPO refines cornerstone process

      IFR 2110 21 November to 27 November 2015

      Scandic Hotels Group has set a price range of SKr66–SKr81 for its OMX Nasdaq listing, which is set to wrap up on December 1. Bookbuilding began on Tuesday and orders covered the full deal size, including greenshoe, as of Thursday.

      An Equinix data center in Singapore

      Equinix feeds hungry REIT investors with new equtity

      IFR 2110 21 November to 27 November 2015

      Data centre REIT Equinix sold common stock for the first time in eight years last week. 

      Macy's Thanksgiving day parade

      Thanksgiving to slow deal flow to a crawl

      IFR 2110 21 November to 27 November 2015

      US equity capital markets head into the Thanksgiving break this week in a more positive frame of mind following solid debuts last week from Square, Match and Duluth, but a number of other deals failed to make the grade as investors remain cautious to back anything but a sure bet.

      Match Group logo

      Match overcomes critics with solid debut

      IFR 2110 21 November to 27 November 2015

      Match Group, best known for its popular Tinder online dating app, overcame some late complications to raise US$400m and produce a solid debut on Thursday in an otherwise tough IPO market.

      Videocon to refinance CB

      IFR 2110 21 November to 27 November 2015

      Videocon Industries is offering to repay its US$200m convertible bonds due in December half in cash and half with fresh CBs.

      MLPs take private route to meet funding needs

      IFR 2110 21 November to 27 November 2015

      The equity capital markets are beginning to thaw for master limited partnerships. Amid sustained low commodity prices that have tempered growth expectations, and the sustainability of dividends, industry participants are privately marketing plans to select groups of institutional investors, before going public with details.

      More from Equities


      ESMA logo

      Indirect clearing changes questioned

      IFR 2110 21 November to 27 November 2015 By

      The derivatives industry has offered a cool response to new European proposals that align clearing rules across exchange-traded and over-the-counter derivatives.

      The Chicago Mercantile Exchange

      US revives listed dividends

      IFR 2110 21 November to 27 November 2015 By

      Futures contracts tracking dividend payouts on the S&P 500 began trading on the CME last week. The launch promises to complete a global exchange-traded market for dividend derivatives that has so far been thwarted by the lack of a successful US product.

      More from IFR Derivatives

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      Pension fund sues big banks

      Big banks accused of rate swap collusion

      A class action lawsuit, filed Wednesday, accuses 10 of Wall Street’s biggest banks and two trading platforms of conspiring to limit competition in the US$320trn market for interest rate swaps.

      Solvay logo

      European Corporates: Overwhelmed leads forced to hold back Solvay pricing

      Market players were left questioning the execution of Solvay’s jumbo M&A bond on Wednesday after the pressures of allocating a €16bn order book dragged pricing out overnight.

      Coal India

      EQUITIES: Five banks hired for Coal India sale

      Axis, ICICI Securities, JM Financial, Kotak and SBI Capital have been hired to manage the 10% stake sale in Coal India, which at the current share price will total a maximum Rs210bn (US$3.1bn), two sources close to the transaction said.

      Andre Esteves

      BTG bonds tailspin on CEO's arrest

      Bonds issued by BTG Pactual were leading the Brazilian bond complex lower on Wednesday following news of the arrest of the bank’s CEO and a ruling party senator.

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

      World of pain

      IFR 2110 21 November to 27 November 2015

      STANDARD CHARTERED’S MARKETING department will have been left breathless and sweating after an error made Bangkok home to the world’s longest half-marathon.


      Argentina votes for historic change

      By David Smith, OMFIF Advisory Board member

      The man and Macri-economics.

      China and Germany

      Germany depends on a weak euro

      By Marcello Minenna in Milan and Edoardo Reviglio in Rome

      Much rests on the People’s Bank of China.

      All Guest Columnists: OMFIF

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      Spain’s bumpy road to recoveryVideo

      The pace of growth in Spain’s economy slowed slightly to 0.8% quarter-on-quarter between July and September. As David Pollard reports, with weeks to go until a general election the country’s uneven recovery from a deep crisis is weighing on voters.

      All Spotlight