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Monday, 22 May 2017

US high-grade bond market starts busy Monday with eight deals

22 May 2017 By Eleanor Duncan

Medical supplier Becton Dickinson led the charge into the US dollar high-grade market Monday, amassing US$18bn of orders for a bond deal to finance its acquisition of CR Bard.

Locals hold 28% of Venezuela bonds: Torino Capital

22 May 2017 By

About 28% of the outstanding bonds issued by the Venezuelan government and its entities are in the hands of locals, according to a report released by brokerage Torino Capital on Monday.

Whole business securitizations in focus in busy ABS week

22 May 2017 By

Three whole business securitizations are in the limelight as another US$6bn of new asset-backed supply is expected to price this week.

MOVES-Halperin returns to US equity-linked at Barclays

22 May 2017 By

Steven Halperin has relocated to the US for a new role at Barclays as both a senior equity-linked originator and to lead new product development across global finance.

European corporates waste no time on the sidelines

22 May 2017 By

The European corporate bond market got off to another busy start this week as demand for new paper prevailed, despite last week’s deluge making conditions a little heavier.

ECB publishes final lending guidelines

22 May 2017 By

The ECB has published its final guidelines to rein in risky lending practices among banks, mirroring rules already introduced in the US in 2013.

US junk bond issuers rush to market

22 May 2017 By

The US junk bond primary market got the week off to a busy start Monday, as six companies announced new bond sales for a combined US$4.9bn, according to market sources.

Clariant

Huntsman trades up on back of Clariant merger

22 May 2017 By Yoruk Bahceli

US chemical manufacturer Huntsman’s €300m 4.25% senior unsecured 2025 bond traded up just over eight points on Monday following the announcement of a merger with Swiss chemicals producer Clariant.

Order book on Becton's offering reaches just over US$18bn: lead

22 May 2017 By Eleanor Duncan

Order books on medical equipment supplier Becton Dickinson’s up to eight-part bond sale swelled to just over US$18bn mid-morning ahead of expected pricing on Monday, according to a lead bank.

MOVES-Burgansky to head oil and gas research at RenCap

22 May 2017 By

Renaissance Capital has appointed Alexander Burgansky as head of oil and gas research. He will also become a managing director of the firm, which has a strong presence in the sector through its Russian background and specialism in emerging markets.

Six junk-rated companies announce bond sales

22 May 2017

The US junk-bond primary market got the week off to a busy start Monday, as six companies announced new bond sales for a combined US$4.9bn, according to market sources.

US high-grade bond market starts busy Monday with eight deals

22 May 2017 By Eleanor Duncan

Eight borrowers led by medical supplier Becton Dickinson charged into the US dollar high-grade market Monday, in a week that is expected to be front-loaded before the Memorial Day holiday.

Rabobank

Rabo delivers blowout debut euro covered

22 May 2017 By

Rabobank has made a triumphant entry to the covered market, one of the last major banks to initiate a programme but unusually tackling two tranches on its inaugural outing.

Petsmart store

Petsmart announces US$2bn bond for Chewy Inc purchase

22 May 2017

Petsmart has announced a US$2bn, two-part junk bond as it seeks to fund the acquisition of Chewy Inc, according to a lead on the deal.

Becton Dickinson office building

Becton announces up to eight-part M&A bond sale

22 May 2017

Becton, Dickinson and Company has announced an up to eight-part bond sale to help fund its US$24bn acquisition of CR Bard, according to a lead on the deal.

Coca-Cola logo

Coca-Cola co to sell US$1bn, two-part bond offering: lead

22 May 2017

Coca-Cola Co has announced a US$1bn, two-part bond sale ahead of expected pricing on Monday.

All Latest news

Spot the difference

IFR 2184 20 May to 26 May 2017

In a banking crisis, investment success is only partly about timing. It’s also (mostly?) about structure. That truth is underlined once more by losses in excess of US$4bn racked up by Singapore sovereign fund GIC’s investment in UBS almost a decade ago.

Top News

UBS logo

Singapore pain as GIC's loss on UBS tops US$4bn

IFR 2184 20 May to 26 May 2017 By ,

Singapore sovereign wealth fund GIC is facing a loss in excess of US$4bn on its emergency investment in Swiss bank UBS nine years ago, according to IFR calculations.

Lehman

Court awards £5bn to Lehman claimants

IFR 2184 20 May to 26 May 2017 By

Claimants against Lehman Brothers’ main European arm will receive at least £5bn in interest payments on top of previously awarded claims, after the UK’s most senior court ruled they should receive the statutory interest that has built up over the past eight years.

Senegal flag

Senegal at the vanguard of African risk

IFR 2184 20 May to 26 May 2017 By Robert Hogg

The search for yield reached another level on Tuesday after Senegal got more than US$8bn of demand for its first bond in three years, paving the way for investors to reappraise other African sovereigns.

Turkish F1 Grand Prix at the Istanbul Park circuit in Istanbul

Formula One accelerates under new owners

IFR 2184 20 May to 26 May 2017 By

CVC has led a group of shareholders selling down their exposure to Formula One, just as new owner Liberty Media overhauls the business of the race series to maximise returns. The US$1.24bn follow-on of Liberty Media shares also included a primary portion that will repay some of the debt incurred in the US$4.4bn acquisition completed in January.

Pelican

Rallye drives market to a frenzy

IFR 2184 20 May to 26 May 2017 By

Investors rushed to buy a €350m long five-year bond issue from Rallye offering just 4.375% on Tuesday, a telling sign, investors said, that valuations in the corporate bond market are over-stretched.

Italy's largest bank UniCredit is pictured in downtown Milan

UniCredit overhaul pays dividends on AT1s

IFR 2184 20 May to 26 May 2017 By ,

UniCredit has taken another step on its long road to rehabilitation, pricing its first public Additional Tier 1 trade in almost three years, in a signal that capital concerns have been laid to rest after a top-to-bottom overhaul of the struggling Italian bank.

European Central Bank (ECB) headquarters

ECB publishes final lending guidelines

IFR 2184 20 May to 26 May 2017 By

The ECB has published its final guidelines to rein in risky lending practices among banks, mirroring rules already introduced in the US in 2013.

Australian Securities Exchange

Officeworks shelves ASX IPO

IFR 2184 20 May to 26 May 2017 By Robert Hartley

Australia’s equity capital markets suffered another hammer blow last week when office products retailer Officeworks cancelled an IPO that had been expected to raise A$1.4bn (US$1bn).

Citi sign

Citigroup launches 'credit VIX'

IFR 2184 20 May to 26 May 2017 By

Citigroup has launched a credit equivalent of Wall Street’s “fear gauge” that is intended to provide an accurate metric for risk aversion in the asset class.

Bumi

Bumi workout nears finish line

IFR 2184 20 May to 26 May 2017 By

Bumi Resources, the Indonesian coal miner controlled by the influential Bakrie family, is nearing the finish line on a restructuring that will cut its debt by more than 50%.

IFR Magazine Top News in Full (subscription required)

People & Markets

Volatility rise eases worry about Q2

IFR 2184 20 May to 26 May 2017

A sudden injection of volatility last week provided trading desks with a shot of adrenaline, just as investors began to fret that a weak second quarter would derail a recovery in trading seen in the aftermath of Donald Trump’s election.

Deutsche in ‘claw-back’ discussions with former management

IFR 2184 20 May to 26 May 2017

Former senior executives at Deutsche Bank are in talks with the German lender’s current supervisory board about paying back part of their remuneration earned during the period when major penalties were incurred by the bank.

Negative rates hurt Japanese mega-banks

IFR 2184 20 May to 26 May 2017

Japan’s three biggest banks last week reported sluggish results for the year to the end of March as the Bank of Japan’s negative interest-rate policy continued to hamper their performances.

Barclays picks top team for capital markets

IFR 2184 20 May to 26 May 2017

Barclays has appointed Jill Schwartz as global head of leveraged finance as part of a series of changes in its capital markets business.

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

Out of Africa

IFR 2184 20 May to 26 May 2017

WHEN THE NEW head of Barclays International Tim Throsby unveiled a top-level reshuffle this month, there was much internal gossip about the winners and losers. But did anyone spot the missing letter?

    More from People & Markets

    Bonds

    Quebec and Manitoba connect with sterling

    IFR 2184 20 May to 26 May 2017

    The Provinces of Quebec and Manitoba have joined the Canadian rush to sterling initiated by Alberta and Ontario earlier this year, raising a combined £650m.

    Luxembourg Stock Exchange extends Green universe to SRI

    IFR 2184 20 May to 26 May 2017

    The Luxembourg Green Exchange (LGX) is opening a segment dedicated to sustainable and social projects bonds, a sector valued at more than US$23trn, as it looks to broaden the universe of socially responsible instruments listed on its platform.

    Fresh horizon for Verizon with Swiss debut

    IFR 2184 20 May to 26 May 2017

    Verizon Communications received a warm welcome for an inaugural Swiss franc deal last Wednesday, taking advantage of a benign market atmosphere to launch a SFr1bn dual-tranche issue.

    FIG issuers keep dancing as music plays on

    IFR 2184 20 May to 26 May 2017

    Familiar and esoteric financial issuers alike have capitalised on blistering conditions to load up on debt, but the fast and furious rally of recent weeks is forcing market participants to question just how long the good times can roll.

    Demand for sterling covereds not yet sated

    IFR 2184 20 May to 26 May 2017

    Investors rushed to the £1bn three-year covered FRN from Barclays, culminating in the largest ever order book for a bond in this format despite its coming in the wake of two UK peers.

      More from Bonds

      Loans

      Hong Kong tightens rules for construction loans

      IFR 2184 20 May to 26 May 2017 By Carol Zhong

      The Hong Kong Monetary Authority is tightening lending for property development in a bid to rein in lenders’ exposure to the real-estate sector.

      European Central Bank (ECB) headquarters

      ECB publishes final lending guidelines

      IFR 2184 20 May to 26 May 2017 By

      The ECB has published its final guidelines to rein in risky lending practices among banks, mirroring rules already introduced in the US in 2013.

      Ratings blow to Oman's Asian debut

      IFR 2184 20 May to 26 May 2017 By Yan Jiang

      S&P’s downgrade of Oman’s credit rating to junk status has complicated the sovereign borrower’s first visit to the Asian syndicated loans market.

      Truck Hero wraps US$1bn LBO loan

      IFR 2184 20 May to 26 May 2017

      Truck Hero, which sells accessories for pick-up trucks and jeeps, finalised pricing at the wide end of guidance on a US$1.025bn loan backing its buyout by financial sponsor CCMP Capital Advisors.

      Indonesia: Demand lights up Star Energy

      IFR 2184 20 May to 26 May 2017

      A US$660m dual-tranche loan backing Star Energy Group’s purchase of Chevron’s Indonesian geothermal assets closed to a strong response from the market in senior syndication.

      Indonesia: Harum seeks forward start facility

      IFR 2184 20 May to 26 May 2017

      Coal-miner Harum Energy is looking to extend and amend part of a US$270m three-year forward start facility maturing this December.

      Hong Kong: Flat Glass seeks up to US$150m

      IFR 2184 20 May to 26 May 2017

      Hong Kong-listed Flat Glass Group is in the market with a three-year loan of up to US$150m through sole coordinator Citigroup.

      China: FormosaChem seeks US$155m

      IFR 2184 20 May to 26 May 2017

      Formosa Chemicals Industries (Ningbo) is returning to the loan markets after a decade for a US$155m-equivalent borrowing.

      More from Loans

      Equities

      Spain: Popular motivated to sell Merlin stake

      IFR 2184 20 May to 26 May 2017

      The proceeds raised by Wednesday night’s sale of Banco Popular’s entire stake in Merlin Properties are a drop in the ocean compared with the amount it needs to raise to satisfy the European banking regulator, but you’ve got to start somewhere.

      France: Speedy coverage for K&B exit

      IFR 2184 20 May to 26 May 2017

      Despite a less than stellar tape, a clean-up trade in property group Kaufman & Broad was covered in 10 minutes last Wednesday evening.

      Belgium: Balta begins pre-marketing

      IFR 2184 20 May to 26 May 2017

      Carpet and rug maker Balta began pre-marketing a €250m-€300m Euronext Brussels IPO on Wednesday, with the deal expected to wrap up around June 14. The company is targeting €137.6m of primary proceeds to reduce leverage alongside undisclosed selling from Lone Star. The market capitalisation will be around €600m.

      First InvIT completed

      IFR 2184 20 May to 26 May 2017

      India floated its first infrastructure investment trust (InvIT)  last week, with another following in its wake.

      Weak listings put IPOs on hold

      IFR 2184 20 May to 26 May 2017

      Thailand’s IPO market is losing steam after a strong start to the year. Energy company B Grimm Power has pushed back its listing timetable and others are rethinking their plans after two newly listed power stocks traded below water.

      Renesas investors to sell US$3.6bn stake

      IFR 2184 20 May to 26 May 2017

      Several shareholders in Japanese semiconductor company Renesas Electronics plan to sell around ¥400bn (US$3.6bn) of the company’s stock in the country’s largest follow-on offering for several years.

      Pakistan: PSE kicks off listing process

      IFR 2184 20 May to 26 May 2017

      The Pakistan Stock Exchange has kicked off the process to sell a 20% stake to the public through an IPO, having issued the draft offer-for-sale document for public comment.

      South Korea: Coway block fetches US$330m

      IFR 2184 20 May to 26 May 2017

      MBK Partners has raised around W370bn (US$330m) from a block of shares in water purifying company Coway, having priced the sale at the bottom of the indicative range, according to a person close to the process.

      More from Equities

      Derivatives

      DTCC eyes Q1 2018 for blockchain CDS reporting

      IFR 2184 20 May to 26 May 2017 By

      The Depository Trust & Clearing Corporation plans to go live in the first quarter of 2018 with its blockchain-driven platform for credit default swaps reporting.

      Too-big-to-fail hinges on CCP rules

      IFR 2184 20 May to 26 May 2017 By

      New legislation governing the recovery and resolution of failing clearinghouses could finally stamp out the spectre of too-big-to-fail, a key aim of global regulators.

      Citi sign

      Citigroup launches 'credit VIX'

      IFR 2184 20 May to 26 May 2017 By

      Citigroup has launched a credit equivalent of Wall Street’s “fear gauge” that is intended to provide an accurate metric for risk aversion in the asset class.

      Channel Tunnel

      Light at the end for Eurotunnel

      IFR 2183 13 May to 19 May 2017 By Alex Chambers,

      Eurotunnel looks set to slash the cost of its whole business securitisation when it refinances an entire tranche, possibly this week, despite being forced to pay around €500m to unwind associated interest rate swaps.

      Chris Giancarlo

      CFTC head urges bank capital overhaul

      IFR 2183 13 May to 19 May 2017 By

      Acting CFTC chairman Christopher Giancarlo has called on global regulators to recalibrate bank capital requirements in a bid to restore market liquidity and avoid “flash” trading events.

      More from IFR Derivatives

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

      Out of Africa

      IFR 2184 20 May to 26 May 2017

      WHEN THE NEW head of Barclays International Tim Throsby unveiled a top-level reshuffle this month, there was much internal gossip about the winners and losers. But did anyone spot the missing letter?