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Tuesday, 20 February 2018

Offshore platform

Energean to raise US$500m in London float

19 February 2018 By

Eastern Mediterranean-focused Energean Oil and Gas has begun pre-marketing a US$500m-plus London Stock Exchange listing, with proceeds to fund development of the company’s Karish and Tanin gas fields, as well as for general corporate purposes.

Estate RMBS

REITs find similar success in look-alike offerings

19 February 2018 By

Triple B rated Grand City Properties and Icade achieved similar success on Monday with their respective benchmark trades aimed at funding tender offers, with investors placing around €1bn of orders in each book.

A logo of Deutsche Bank AG is seen in Tokyo.

Deutsche to cut up to 500 jobs

19 February 2018 By

Deutsche Bank is to cut up to 500 investment banking jobs with 250 initially earmarked to go, according to a person close to the situation.

Tthe central headquarters of Siemens AG is seen in Munich

Siemens Healthineers targets €40bn valuation

19 February 2018 By

Pre-marketing began today for the much-anticipated flotation of Siemens Healthineers, with expectations that the German med tech unit could be valued at close to €40bn.

Office workers carrying umbrellas pass a UOB bank branch in Singapore.

UOB to sell Singapore's first sterling covered

19 February 2018 By

United Overseas Bank will become the first Singaporean bank to issue a sterling-dominated covered bond, diversifying its funding and offering sterling investors exposure to a new name and jurisdiction.

Gatwick Airport

Gatwick lands close to fair value

19 February 2018 By

Gatwick Funding’s £300m 30-year left little concession on the table when launched at 133bp over Gilts on Monday.

Societe Generale logo

SG breaks SNP stranglehold with rare Tier 2

19 February 2018 By

Societe Generale sold its first euro Tier 2 bond for three years on Monday, a rare outing in this market from a French national champion since the advent of senior non-preferred in late 2016.

Flora

High-yield deals expected to return this week

19 February 2018 By

The European high-yield market opened to firmer conditions than last week and bankers expect deals to emerge later on, with at least one Double B deal in the making.

Spanish flags

Spain rumoured to look at 30-year for this week

19 February 2018 By ,

The Kingdom of Spain could emerge with a euro 30-year bond this week, according to market sources, after a near two-year break in syndications of this tenor.

Citigroup sign

MOVES-Citi FX veteran Sinniah retires, Hewson promoted

19 February 2018 By

Citigroup has promoted Sam Hewson to global head of electronic FX solutions, to replace veteran Bernie Sinniah, who is retiring after 38 years at the US bank in a number of foreign exchange roles.

German flag

MOVES-Kupfer to head UniCredit's CIB in Germany

19 February 2018 By

Jan Kupfer has been appointed head of corporate and investment banking for Germany at UniCredit. He is currently global co-head of global transaction banking at the Italian-headquartered bank.

Flag bearer of Oman Hatem Al Hamhami leads the team into the Opening Ceremony of the 17th Asian Games

Oman Gas working on US$1bn bridge loan - sources

19 February 2018 By

(Reuters) State-owned Oman Gas Company is working with a group of banks to raise a bridge loan of slightly over US$1bn, which will later be refinanced via a US dollar bond issue, sources familiar with the matter said.

Logos of Woodside Petroleum are seen at Gastech, the world's biggest expo for the gas industry, in Chiba, Japan.

Australia’s Woodside completes A$1.57bn institutional offer

19 February 2018 By

Australia’s Woodside Petroleum said it has completed a A$1.57bn (US$1.24bn) institutional entitlement offer.

A view of the headquarters of Indonesia's biggest lender Bank Mandiri in Jakarta's business district

MOVES-Venkatraman resurfaces at Bank Mandiri

19 February 2018 By

Senior banker Shailesh Venkatraman has resurfaced at Bank Mandiri as head of corporate finance.

IFR SNAPSHOT-Credit wobbles amid outflows, but SF motors on

16 February 2018 By

It’s another no deal day in the IG and junk primaries, but structured finance continues to motor along with three trades today - apparently oblivious to broader volatility.

Returns decline

Returns decline at investment banks

16 February 2018 By

The 12 major investment banks saw their returns on equity fall by an average 90bp last year to 8.6%, according to consultancy Coalition, below the level at which they can meet their cost of capital, estimated by the firm at 10%-12%.

All Latest news

Big, bigger, biggest

IFR 2221 17 February to 23 February 2018

It’s an intimidating number. But the liquid US loan market is more than equal to the task of syndicating the US$100bn of committed debt facilities backing chipmaker Broadcom’s US$121bn bid for Qualcomm.

Top News

Broadcom

Big and beautiful: lenders 'salivating' over US$100bn Broadcom deal

IFR 2221 17 February to 23 February 2018 By

Chipmaker Broadcom’s US$100bn loan package backing its proposed US$121bn acquisition of Qualcomm will become the biggest-ever syndicated loan globally if the hostile deal goes ahead.

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

Subscribe to IFR (and other TR products) to win your place on US$15bn Blackstone deal

IFR 2221 17 February to 23 February 2018 By , , ,

More banks are poised to join the US$15bn financing backing US private equity firm Blackstone Group’s acquisition of a majority stake in Thomson Reuters’s Financial and Risk unit. The financing is made up of US$14bn of bonds and loans, and a separate US$1bn payment-in-kind note.

Zidan of Egypt challenges Taiwo of Nigeria during their African Nations Cup soccer match

African sovereigns pay to play

IFR 2221 17 February to 23 February 2018 By

Egypt and Nigeria proved that markets remain open for jumbo bonds from emerging markets issuers - but at a price.

Kroger

EG lines up US$2.5bn for Kroger buy

IFR 2221 17 February to 23 February 2018 By

Banks have lined up approximately US$2.5bn-equivalent of leveraged loans to back UK petrol station operator EG Group’s acquisition of US grocery chain Kroger’s convenience store unit.

Russia

Questions about Russian bid as STLC pulls deal

IFR 2221 17 February to 23 February 2018 By

State-owned STLC last week became the first Russian borrower to pull a bond deal in nearly five years, leading to concerns about the strength of the local demand that underpins issuance from the country.

President Donald Trump signed an order that will seek to dramatically reduce federal regulations

US tax reform sends lifers hunting for new assets

IFR 2221 17 February to 23 February 2018 By

US life insurers are worried about a sudden drop in issuance of long-duration high-grade corporate bonds after the Trump administration’s tax cuts made it less appealing for companies to issue long duration debt.

Hon Hai targets yen debut

Foxconn aims for landmark IPO

IFR 2221 17 February to 23 February 2018 By IFR Reporters

Foxconn Industrial Internet, the mainland unit of Taiwan’s Foxconn, has applied for a Shanghai IPO that could set a milestone in China’s ability to attract major listings from the fast-growing technology sector.

Us dollar and euro banknotes

Tax reform takes shine off US debt market

IFR 2221 17 February to 23 February 2018 By

For large multinational corporations in need of cash, issuing debt in the US market was, until recently, a no-brainer.

A man uses a mobile phone

IPOs remain on course despite first failure

IFR 2221 17 February to 23 February 2018 By

It was another week of mixed results for European IPOs, with a successful completion of German homebuilder Instone Real Estate’s €437.5m IPO - though it then traded down - and cancellation of France’s Novares on its second attempt to float.

IFR Magazine Top News in Full (subscription required)

People & Markets

Credit Suisse gains from volatility

IFR 2221 17 February to 23 February 2018

The global markets business at Credit Suisse has benefited from the recent bout of volatility, seeing net revenues rise 10% in the first six weeks of the year compared with a year earlier, but the Swiss lender reported a steep fourth-quarter net loss due to US tax reforms.

Goldman set for trading rebound

IFR 2221 17 February to 23 February 2018

Goldman Sachs is having a little trading trouble but it’s nothing to worry about, chief executive Lloyd Blankfein told a financial services conference last week.

Shareholder activists eye repatriated cash

IFR 2221 17 February to 23 February 2018

Unleashing a potential US$2trn of capital trapped overseas may have an unwanted side effect for US companies. Activist shareholders may step up demands that most of it be turned over to them.

Deal guru Klein to join Credit Suisse board

IFR 2221 17 February to 23 February 2018

Michael Klein has been nominated to be a non-executive director of Credit Suisse. Klein was previously chairman and co-chief executive of markets and banking at Citigroup until he stepped down in July 2008. That was weeks ahead of the collapse of Lehman Brothers, which sparked the financial crisis.

Who's moving where . . .

IFR 2221 17 February to 23 February 2018

Morgan Stanley has reshuffled two of its coverage groups in Asia as Marie-Soazic Geffroy, head of the financial institutions group for Asia Pacific, relocates to Europe. Geffroy has been appointed vice-chairman of the investment banking division in Europe. Simon Herrmann, who was head of the APAC financial sponsors group, has been appointed as head of FIG for APAC. Prior to his role in FSG, Herrmann was head of South-East Asia FIG. Replacing Herrmann as head of FSG is Mohamed Atmani, who is joining the firm in Hong Kong from Deutsche Bank, which he joined from UBS.

    More from People & Markets

    Bonds

    Credit investors unperturbed by Basel IV disclosures

    IFR 2221 17 February to 23 February 2018

    European banks are offering investors a glimpse into the potential impact of global regulatory reforms on their balance sheets, though the lengthy phase-in period has left credit buyers markedly relaxed.

    TDC in fallen angel danger zone after Macquarie bid

    IFR 2221 17 February to 23 February 2018

    Moody’s and S&P have placed their Baa3/BBB- ratings for TDC on review for downgrade/watch negative after the Danish telecoms company backed a €5.4bn-equivalent buyout offer from Macquarie and a consortium of local pension funds.

    Debut Moody's rating on Gatwick hints at potential offering

    IFR 2221 17 February to 23 February 2018

    Bankers have been pondering whether an inaugural Moody’s rating on Gatwick Funding’s £5bn multi-currency MTN programme could be the precursor to an imminent deal.

    London and Quadrant Housing Trust plans dual-trancher

    IFR 2221 17 February to 23 February 2018

    London and Quadrant Housing Trust, rated A3/A+ (stable/negative) by Moody’s and S&P, has mandated Lloyds Bank, NatWest Markets and Santander to arrange a series of investor meetings commencing on February 19 and to act as joint bookrunners on any subsequent issuance.

    Madrid back in SRI as Belgium, NRW prep benchmarks

    IFR 2221 17 February to 23 February 2018

    The Community ofMadrid successfully returned to the Sustainable bond market last week, finding ample demand for its biggest trade in the format yet, a reassuring signal for Belgium and NRW, which are expected to emerge in the coming weeks.

      More from Bonds

      Loans

      Broadcom

      Big and beautiful: lenders 'salivating' over US$100bn Broadcom deal

      IFR 2221 17 February to 23 February 2018 By

      Chipmaker Broadcom’s US$100bn loan package backing its proposed US$121bn acquisition of Qualcomm will become the biggest-ever syndicated loan globally if the hostile deal goes ahead.

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

      Subscribe to IFR (and other TR products) to win your place on US$15bn Blackstone deal

      IFR 2221 17 February to 23 February 2018 By , , ,

      More banks are poised to join the US$15bn financing backing US private equity firm Blackstone Group’s acquisition of a majority stake in Thomson Reuters’s Financial and Risk unit. The financing is made up of US$14bn of bonds and loans, and a separate US$1bn payment-in-kind note.

      Kroger

      EG lines up US$2.5bn for Kroger buy

      IFR 2221 17 February to 23 February 2018 By

      Banks have lined up approximately US$2.5bn-equivalent of leveraged loans to back UK petrol station operator EG Group’s acquisition of US grocery chain Kroger’s convenience store unit.

      Robertshaw nets LBO loan

      IFR 2221 17 February to 23 February 2018

      Residential and commercial heating and air conditioning company Robertshaw Holdings rolled out changes to its first and second-lien loan package backing its leveraged buyout by One Rock Capital Partners.

      Action wraps €2.285bn divi recap

      IFR 2221 17 February to 23 February 2018

      Dutch discount retailer Action has sealed a €2.285bn term loan B refinancing and dividend recapitalisation.

      Comexposium tightens pricing

      IFR 2221 17 February to 23 February 2018

      French trade show and exhibition organiser Comexposium has tightened pricing on a €355m term loan B refinancing and add-on.

      New Zealand: Fletcher wins reprieve

      IFR 2221 17 February to 23 February 2018

      Fletcher Building has received a waiver from some of its lenders for breaching covenants, as its troubled building and interiors division is expected to report a NZ$660m (US$480m) loss in the 2018 fiscal year.

      India: IRFC sends RFP for ten-year loan

      IFR 2221 17 February to 23 February 2018

      State-owned Indian Railway Finance Corp has sent a request for proposals for a US$250m-equivalent ten-year loan.

      More from Loans

      Equities

      UK: TruFin prepares for debut

      IFR 2221 17 February to 23 February 2018

      TruFin has raised £70m in the first significant UK IPO of the year after pricing its AIM float at 190p per share. Pricing valued the company at £185m.

      Moldova: Investors toast Purcari's debut

      IFR 2221 17 February to 23 February 2018

      Purcari Wineries on Thursday became the first Moldovan company to debut on Romania’s Bucharest Stock Exchange. The winemaker had managed to overcome market turbulence to price its L186.2m (US$49.4m) IPO at the bottom of the wide L19–L28 range and saw positive trading on its first day.

      Netherlands: Amsterdam’s first SPAC adopts new structure

      IFR 2221 17 February to 23 February 2018

      Bookbuilding began on Monday for the first special purpose acquisition vehicle (SPAC) to list on Euronext Amsterdam and the structure differs from recent offerings elsewhere. Dutch Star Companies One intends to raise up to €100m in capital to acquire a stake in a Dutch company and has already secured the backing of a group of investors that have committed €50.5m.

      Sweden: Nordic Capital sells 8.75% of Resurs

      IFR 2221 17 February to 23 February 2018

      Nordic Capital sold a slice of its holding in consumer credit group Resurs on Tuesday, in its first selldown in the name for almost a year.

      UK: EJF Investments eyes US opportunities

      IFR 2221 17 February to 23 February 2018

      EJF Investments, a fund that specialises in the financial services sector, intends to raise £50m as part of its placing programme. The fresh capital will be deployed in the US small banks and insurance sector, where the company has identified a number of performance drivers.

      Ireland: REIT raising €207m for Dublin properties

      IFR 2221 17 February to 23 February 2018

      York Capital intends to list Core Industrial REIT to raise up to €207m to acquire additional industrial property assets in the greater Dublin Area.

      France: Bpifrance sells 12% of Cegedim

      IFR 2221 17 February to 23 February 2018

      State-owned investment fund Bpifrance, which provides assistance and financial support to early-stage SMEs, sold shares representing 12% in outsourcing group Cegedim on Monday as it scales down an investment from 2009.

      UK: Galliford Try share issue to ease cash crunch

      IFR 2221 17 February to 23 February 2018

      Galliford Try will issue new shares to raise £150m as it struggles with a major roadbuilding project in north eastern Scotland.

      More from Equities

      Derivatives

      India knocks SGX's derivatives ambitions

      IFR 2221 17 February to 23 February 2018 By

      Singapore Exchange’s status as the leading offshore derivatives hub for Indian equities has taken a heavy blow as it faces losing access to data from the main Indian bourses.

      TDC in fallen angel danger zone after Macquarie bid

      IFR 2221 17 February to 23 February 2018

      Moody’s and S&P have placed their Baa3/BBB- ratings for TDC on review for downgrade/watch negative after the Danish telecoms company backed a €5.4bn-equivalent buyout offer from Macquarie and a consortium of local pension funds.

      Single-name CDS still relevant says ICMA

      IFR 2221 17 February to 23 February 2018 By

      Markets participants and stakeholders should embrace and promote single-name credit default swap products for the benefit of the European corporate bond market, according to an International Capital Market Association (ICMA) study.

      AT&T seeks to tweak bonds as Time Warner M&A drags on

      IFR 2221 17 February to 23 February 2018

      AT&T has launched cash and exchange offers on more than €6bn-equivalent of debt issued in June to help finance its proposed US$85.4bn acquisition of Time Warner as the mega-merger continues to drag on.

      VIX

      Return of volatility sparks trading flows

      IFR 2220 10 February to 16 February 2018 By

      Last week’s gyrations in the financial markets could help revive investment banks’ trading operations, which have been blighted by the record low volatility seen in the second half of last year. But it may prove - at least for some - too much of a good thing.

      More from IFR Derivatives

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