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Sunday, 25 August 2019

Play your cards right

IFR 2297 24 August to 30 August 2019

Hong Kong’s attempt to entrench environmental, social and governance principles into its business life have been rather overtaken by events.

Top News

Protesters hold hands to form a human chain during a rally to call for political reforms in Hong Kong's Central district

Hong Kong protests put IPOs in doubt

IFR 2297 24 August to 30 August 2019 By

Political unrest has cast doubts over stock market listings for the foreseeable future in Hong Kong, including the secondary listing of up to US$15bn from Chinese e-commerce giant Alibaba Group.

US one-hundred dollar bills

For US corporates, low rates mean no dog days in August

IFR 2297 24 August to 30 August 2019 By

US corporates must feel like mangling the lyrics of the Byrds - “there is a season, churn, churn, churn” - as demand for bonds even at the height of summer spurs supply at a solid pace despite market volatility and the self-inflicted political chaos.

People walk past a Swedbank branch in Riga

Embattled Swedbank prevails with blowout dollar AT1

IFR 2297 24 August to 30 August 2019 By ,

Swedbank secured a blowout for its first Additional Tier 1 since being caught in a money laundering scandal, driven in part by a desperate hunt for yield by credit investors.

Gilts' Brexit rollercoaster

Banks, investors braced for no-deal Brexit

IFR 2297 24 August to 30 August 2019 By

Investment banks and investors are preparing for the worst ahead of the October 31 Brexit deadline, as the industry faces up to the prospect of the UK leaving the European Union without a deal.

Logo of U.S. co-working firm WeWork

WeWork heads for September IPO but doubts linger

IFR 2297 24 August to 30 August 2019 By

The We Company, the flexible office space provider better known as WeWork, is forging ahead with plans to go public next month despite a wall of scepticism rivalling even that surrounding the much-maligned debut of Uber Technologies in May.

Bucket with the colours of Argentina's national flag

Argentina goes back to the future

IFR 2297 24 August to 30 August 2019 By

Investors are once again facing the possibility of a major restructuring Argentina’s debt as markets price in the potential return of a populist president come the election in October.

Aramco

Aramco IPO: once more with feeling

IFR 2297 24 August to 30 August 2019 By

The promise of the largest IPO in history has banks once again competing to win roles on Saudi Aramco’s flotation, two years after it was last mandated.

Mozambique's national flag

Mozambique bond restructuring delayed

IFR 2297 24 August to 30 August 2019 By

Mozambique has yet to publish formal documentation and appoint bookrunners for its proposed exchange offer prompting fears the restructuring of its US$727m 10.5% 2023 notes may be delayed until after the African country’s presidential and parliamentary elections on October 15.

General Electric

'Fraud' report sounds alarm on GE

IFR 2297 24 August to 30 August 2019 By

The warning signs for General Electric debt are flashing once again, even after an inflammatory report accusing the storied US industrial company of hiding US$38bn in accounting fraud was found to be overblown.

Credit Suisse posts double-digit growth in Asia IB revenues

Credit Suisse beefs up growing ITS business

IFR 2297 24 August to 30 August 2019 By

Credit Suisse is making 10 hires in its International Trading and Solutions unit, a further sign of the growth potential senior management sees in cross-selling products from its investment bank to its large roster of high-net worth clients.

A girl holds a U.S. and Chinese flag

Asian bond syndicate switches gain ground

IFR 2297 24 August to 30 August 2019 By

Chinese issuers change their bookrunners in the middle of bookbuilding for G3 bond sales more than a quarter of the time, IFR research has shown.

IFR Magazine Top News in Full (subscription required)

People & Markets

HSBC snubbed in China rate reform

IFR 2297 24 August to 30 August 2019

China has left out HSBC from the expanded panel of banks that will determine its new benchmark lending rate, in an apparent snub for the Anglo-Asian lender.

Goldman to raise stake in China JV

IFR 2297 24 August to 30 August 2019

Goldman Sachs has applied to raise its stake in its China securities joint venture, Goldman Sachs Gao Hua, to 51%.

Deutsche settles hiring probe

IFR 2297 24 August to 30 August 2019

Deutsche Bank has agreed to pay more than US$16m to settle a US probe into its hiring practices in Asia and Russia, the US Securities and Exchange Commission said last Thursday.

Westpac flags lower capital ratio

IFR 2297 24 August to 30 August 2019

Westpac Banking Corporation’s capital levels are showing signs of strain as it reported a drop in its common equity Tier 1 ratio to 10.5%, the minimum level the big four Australian banks must meet from January 1 2020.

CIC in talks over Henfeng rescue

IFR 2297 24 August to 30 August 2019

China’s sovereign wealth fund is in talks about acquiring a stake in Hengfeng Bank, paving the way for the third state-backed rescue of a troubled lender since May.

    More from People & Markets

    Bonds

    Safe-haven bonds draw investors

    IFR 2297 24 August to 30 August 2019

    Two Asian issuers took advantage of the dearth of Asian investment-grade bond supply in recent weeks to revive the market and print flat to their curves.

    NBFCs broaden funding options

    IFR 2297 24 August to 30 August 2019

    India’s non-banking financial companies are looking to diversify their sources of funding after regulators relaxed rules to boost liquidity for the credit-starved sector.

    Cambodia: First retail bonds sold

    IFR 2297 24 August to 30 August 2019

    Advanced Bank of Asia has completed Cambodia’s first retail bond offering, the latest step in the development of the South-East Asian nation’s nascent capital market.

    Aussie RMBS buyers stay cautious

    IFR 2297 24 August to 30 August 2019

    Bank of Queensland returned to the RMBS market last Thursday with an enlarged A$1bn (US$680m) securitisation that struggled to gain price traction for the senior notes, despite the scarcity value as just the fourth sale from a regional or mutual bank this year.

    Latitude targets UK investors

    IFR 2297 24 August to 30 August 2019

    Latitude Finance Australia has mandated Bank of America Merrill Lynch as arranger and joint lead manager with Deutsche Bank, NAB and SG for investor meetings in Australia and the UK for a potential Australian dollar issue under Latitude Australia’s Credit Card Master Trust programme.

      More from Bonds

      Loans

      Germany: Porsche places €1bn Green Schuldschein

      IFR 2297 24 August to 30 August 2019

      German sports car manufacturer Porsche has placed a €1bn Green Schuldscheindarlehen (SSD) which will be used exclusively to finance the Porsche Taycan vehicle project, Porsche’s first fully electric vehicle.

      Netherlands: Booking gets US$2bn revolver

      IFR 2297 24 August to 30 August 2019

      Online travel and related services firm Booking Holdings has agreed a US$2bn five-year revolving credit facility that will be used for working capital and general corporate purposes.

      Germany: TRIMET bags €140m loan refinancing

      IFR 2297 24 August to 30 August 2019

      Family-owned aluminium producer TRIMET Aluminium SE has completed a €140m three-year syndicated loan, which replaces an existing €120m loan that was originally arranged in 2013 and was subsequently extended in 2015.

      Ireland: Perrigo signs US$600m term loan

      IFR 2297 24 August to 30 August 2019

      Pharmaceuticals firm Perrigo Co has agreed a US$600m three-year unsecured term loan, which replaces an existing €350m term loan agreed in March 2018 that was due to mature in March 2020.

      Germany: Varta powers up with €120m loan

      IFR 2297 24 August to 30 August 2019

      Battery company Varta AG has completed a €120m syndicated loan with a group of five banks.

      France: Agrial signs €900m sustainable loan

      IFR 2297 24 August to 30 August 2019

      Agricultural cooperative group Agrial has completed a €900m five-year loan refinancing, which links the margin on the financing to achieving several corporate social responsibility (CSR) objectives.

      Austria's AMS bridges Osram counter-offer

      IFR 2297 24 August to 30 August 2019

      Sensor specialist AMS is backing its €4.3bn (US$4.8bn) bid for German lighting group Osram with a €4.2bn fully underwritten bridge loan.

      Short-term strategies limit risk in private debt

      IFR 2297 24 August to 30 August 2019 By Kerstin Kubanek

      Smaller European direct lenders are raising funds and lending on a short-term basis in a bid to limit potential late cycle credit losses, as macroeconomic and political risks rise in more volatile markets.

      More from Loans

      Equities

      IPO duo spook investors

      IFR 2297 24 August to 30 August 2019

      The weak post-IPO performance of Sterling and Wilson Solar and Spandana Sphoorty Financial is likely to keep India closed for ECM in the short term.

      China: Trio buy 9F IPO

      IFR 2297 24 August to 30 August 2019

      The NYSE IPO of Chinese digital financial services provider 9F has raised US$84.6m after pricing came in at the top of the indicative price range, but distribution was extremely narrow.

      China: Fosun trims Tsingtao stake

      IFR 2297 24 August to 30 August 2019

      Fosun Group and its entities have raised HK$1.53bn (US$195m) from a sell-down in Tsingtao Brewery.

      China: CGN Power mobbed by retail investors

      IFR 2297 24 August to 30 August 2019

      CGN Power has clawed back much of the institutional tranche of its Rmb12.6bn (US$1.79bn) IPO, the largest A-share IPO in more than a year, after the retail portion was more than 400 times subscribed.

      China: Henlius Biotech to test HK appetite

      IFR 2297 24 August to 30 August 2019

      Fosun-backed Shanghai Henlius Biotech plans to start pre-marketing this week for a Hong Kong IPO of about US$500m, which will be the first sizeable deal to test investor appetite after weeks of protests in the city.

      China: Nayuki weighs US IPO

      IFR 2297 24 August to 30 August 2019

      Chinese cafe owner Nayuki is considering listing in the US as early as next year, said people familiar with the situation, and is in early stage discussions with potential advisers.

      China: Ximalaya picks IPO banks

      IFR 2297 24 August to 30 August 2019

      Ximalaya FM, China’s largest online audio platform, has picked Goldman Sachs, JP Morgan and Morgan Stanley to arrange an IPO of US$500m–$1bn, said people with knowledge of the matter.

      Australia: Steadfast raises acquisition funds

      IFR 2297 24 August to 30 August 2019

      ASX-listed Steadfast Group has raised A$100m (US$68m) through an institutional placement to fund acquisitions of insurance brokerage and underwriting agencies.

      More from Equities

      BTG Pactual sign

      BTG bond prices fall following news of police raids

      23 August 2019 By

      Bonds issued by Brazilian investment bank BTG Pactual were sinking on Friday following news that local police had raided the bank and the address of founder Andre Esteves.

      Hasbro logo

      Hasbro to issue new debt for Entertainment One acquisition

      23 August 2019 By

      US toy company Hasbro announced this week a US$4bn acquisition of UK-listed Canadian content producer and distributor Entertainment One that will be funded with a mix of equity and new debt financing.

      IFR SNAPSHOT-Primaries idle as tariff wars escalate

      23 August 2019 By

      Another week ends with market turmoil triggered yet again by trade and tariffs.

      A woman sleeps at a bench at the end of a working day at the central business district in Singapore.

      Companies to load up on debt despite investor malaise

      23 August 2019 By

      Negative yields are putting the corporate market into somewhat of a fugue state, with companies hitting record low yields on bond sales despite deep investor unease.

      High-flying Grounds to leave UBS

      MOVES-Van Steenis heads to UBS

      23 August 2019 By

      Veteran banking analyst Huw van Steenis has joined UBS as head of investor relations and chair of a new sustainable finance committee at the Swiss bank, starting on September 2.

      US leveraged loan market pauses as recession fears mount

      US leveraged loan market pauses as recession fears mount

      22 August 2019 By

      Mounting indicators of a recession and rising global geopolitical tensions are spooking investors, as new launches of leveraged loans grind to a halt amid a summer lull.

      Logo of Swiss telecoms company Sunrise

      Sunrise kicks Freenet out of UPC acquisition talks

      22 August 2019

      A war of words between Swiss telecoms firm Sunrise Communications and its main shareholder Freenet heated up on Thursday, as they locked horns over Sunrise’s proposed acquisition of UPC Switzerland and the related SFr4.1bn (US$4.1bn) capital increase.

      VW bus

      VW rolls into sterling

      22 August 2019 By

      Volkswagen Financial Services cracked open the sterling market with a 3.25-year trade that could pave the way for other auto names facing the problem of negative yields at the short end of the euro curve.

      IFR SNAPSHOT-All quiet in the August homestretch

      22 August 2019 By

      No IG or HY offerings are expected in the US corporate primaries this Thursday as the last days of summer beckon for holiday time.

      People walk past a Swedbank branch in Riga

      Embattled Swedbank out with dollar AT1

      22 August 2019 By

      Swedbank is hoping to make the most of the desperate hunt for yield with its first Additional Tier 1 since being caught in a money-laundering scandal, a deal that will test the appetite of credit investors for the lender’s riskiest debt.

      A woman walks past Standard Chartered logo at its headquarters in Hong Kong, China.

      StanChart moves fast to adopt LPR on renminbi loans

      22 August 2019 By Apple Li

      Standard Chartered Bank (China) has swung into action within days of China’s central bank announcing a new prime rate mechanism and completed eight trade-finance loans based on the benchmark.

      JP Morgan

      JP Morgan to tender US$11.15bn of legacy TLAC notes

      21 August 2019 By

      JP Morgan moved forward this week with a US$11.15bn bond tender that may set a precedent for how banks deal with legacy debt that loses eligibility for total loss-absorbing capacity requirements.

      MOVES-RBC taps Neldner to run capital markets

      21 August 2019 By

      Royal Bank of Canada has named Derek Neldner as group head of capital markets effective November 1, succeeding Doug McGregor who will retire on January 31, 2020.

      israel

      Hertz Group Realty Trust plans Tel Aviv listing

      21 August 2019

      Israeli private equity real estate firm Hertz Group Realty Trust is planning to list its shares on the Tel Aviv Stock Exchange.

      World Bank passes US dollar acid test

      World Bank passes US dollar acid test

      21 August 2019 By

      Demand for World Bank’s five-year Global - the first bond from a top-tier issuer in US dollars since the summer slowdown - appeared robust enough to encourage other borrowers plotting deals in the currency.

      IFR SNAPSHOT-One's the word as IG primary slows

      21 August 2019 By

      Only one investment-grade offering is on tap this Wednesday as the IG sector slows down for an August holiday.

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      Special Reports and Roundtables

      IFR Green Financing Roundtable 2019 IFR+Green+Financing+Roundtable+2019+Cover
      Green finance has become one of the most important themes driving global finance. It has captured the attention of banks, companies, investors, governments and the general populace. And it continues to gather pace as the notion of a climate emergency demanding urgent action increasingly takes hold.

      IFR SSA Special Report 2019 IFR+SSA+Special+Report+2019
      Best laid plans: Few would be so presumptuous as to lay claim to the ability to plot the progress of the global economy with unerring accuracy on a constant basis. But there are still many that make the prediction game their stock in trade – with varying degrees of success.

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

      ​Argy Bargy

      IFR 2297 24 August to 30 August 2019

      GOLDMAN SACHS IS doing its best to muscle onto the Saudi Aramco IPO, hoping that Dina Powell, one of the US bank’s partners, can exploit her connections with past-employer Donald Trump. Perhaps Powell could also use her presidential clout to get Goldman onto the other high-profile deal grabbing the headlines: Trump’s potential takeover of Greenland.