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Wednesday, 20 March 2019

Barclays sign

Barclays joins AT1 party in UK issuance wave

20 March 2019 By

Books had passed US$5bn for Barclays’ latest Additional Tier 1 offering at the New York open, a healthy premium helping to compensate investors for potential Brexit volatility and signs of indigestion emerging in the Yankee AT1 market.

IFR SNAPSHOT-Three FIGS slated for IG primary market

20 March 2019 By

The train of FIGs into the investment-grade primary continues to roll with three offerings slated for Wednesday.

Pile of one hundred dollar notes

Foreign demand helps drive US high-grade tighter: reports

20 March 2019 By

Strong foreign inflows have helped drive spread tightening in the US high-grade market this year as Asian and European investors take a shine to the asset class, said two reports from investment banks this week.

Barclays sign

Barclays joins AT1 party as it peters out

20 March 2019 By

Barclays is offering a generous premium to sell its first Additional Tier 1 bond since the summer of 2018 as it looks to compensate investors for Brexit volatility and signs of indigestion emerging in the Yankee AT1 market.

A logo of HSBC is displayed outside a branch in the financial district in Hong Kong, China.

MOVES-HSBC co-head of ECM Asia-Pacific to leave

20 March 2019 By

Alexis Adamczyk, co-head of equity capital markets for Asia-Pacific at HSBC, is leaving the bank, according to people familiar with the situation.

UK STS securitisation in sight as PCS gets green light

UK STS securitisation in sight as PCS gets green light

20 March 2019 By

The first UK securitisation to comply with the simple, transparent and standardised (STS) securitisation rules could be imminent after Prime Collateralised Securities received authorisation to act as a third-party verification agent, allowing it to verify that securitisations meet the STS regulatory criteria.

Financial Industry Regulatory Authority sign

FINRA set to unveil proposal on corporate bond data collection

19 March 2019 By

The US Financial Industry Regulatory Authority is prepared to file a rule proposal with the Securities and Exchange Commission to require the collection and dissemination of reference data for new corporate bonds.

Nordea

Nordea seizes strong market to sell AT1 bond

19 March 2019 By

Nordea Bank saw US$4.75bn of investor demand on Tuesday for an Additional Tier 1 bond, the latest such security from a European bank to hit the US dollar market in the past few weeks.

Pemex headquarters

MOVES-Associate MD of finance steps down at Pemex

19 March 2019 By

Carlos Caraveo has stepped down as associate managing director of finance at Pemex after working almost 26 years at the Mexican oil firm and its subsidiaries, sources tell IFR.

Ford Credit logo

Ford boosts size of first 2019 ABS

19 March 2019 By

Auto ABS issuer Ford Credit upsized a prime auto loan securitization on Tuesday, tapping into strong demand for liquid names.

Xerox logo

S&P warns it may cut Xerox deeper into junk

19 March 2019 By

Ratings agency S&P warned on Tuesday that it may cut Xerox deeper into junk territory, after the printer maker said it was exploring the possibility of a strategic transaction for its customer financing business.

A boy dressed in traditional a costume waves a Swiss flag during the official ceremonial act at the

Stadler begins pre-marketing SFr1.2bn SIX IPO

19 March 2019

Joining the still-tiny list of IPO launches in 2019, Swiss rolling stock company Stadler Rail has begun pre-marketing a SIX Swiss Exchange float.

Laborers work at a steel plant of Shandong Iron & Steel Group in Jinan, Shandong province, China.

Russian stake sales continue with Evraz

19 March 2019

Four shareholders in London-listed Russian steel maker Evraz sold 1.8% of the company on Monday evening, marking the third Russian ABB in the past week.

Butchers chop meat at a packing plant

Russia back on the menu with Cherkizovo re-IPO

19 March 2019

Russian meat producer Cherkizovo has revived its re-IPO after a trio of accelerated bookbuilds in Russian companies over the previous week, and as the company seeks to capitalise on the current appetite as windows for Russian equity sales are often short.

Financial Conduct Authority (FCA) logo

UK watchdog fines UBS £28m for reporting failures

19 March 2019 By

Britain’s markets watchdog said on Tuesday it had fined Swiss bank UBS a record £27.6m for failing to report 136m transactions properly for nearly a decade in a repeat offence.

Schaeffler office

Schaeffler stuns with debut ... while CDS whipsaws

19 March 2019 By

Another day, another blowout deal as Schaeffler’s debut in Europe’s investment-grade market was more than eight times subscribed.

All Latest news

Not in the game

IFR 2275 16 March to 22 March 2019

Deutsche Bank bosses don’t have much skin in the game. That should be a worry for investors and staff as the bank enters critical talks about a potential merger with Commerzbank.

Top News

Sanofi logo

Negative-yielding new issues return to corporate market

IFR 2275 16 March to 22 March 2019 By

Negative yields are making a comeback in the European corporate primary market as growth fears rekindle memories of an era that investors thought had passed after the ECB stopped QE at the end of last year.

Schaeffler logo

Schaeffler CDS collapses after new bond announced

IFR 2275 16 March to 22 March 2019 By ,

The value of credit derivatives used to insure against a default on Schaeffler collapsed last week after the German car-parts supplier announced changes to its debt structure that traders worried could make credit-default swaps on the firm all but worthless.

Banners of Deutsche Bank and Commerzbank

Job cuts and shrunken CIB: Deutsche/Commerzbank talk merger

IFR 2275 16 March to 22 March 2019 By , ,

It’s official: Deutsche Bank and Commerzbank are in talks about a possible merger, German Finance Minister Olaf Scholz confirmed on Monday.

Deutsche Bank headquarters

Skin in the game? Not much at Deutsche

IFR 2275 16 March to 22 March 2019 By ,

Deutsche Bank’s top bosses owned shares in the bank currently worth just €3.5m, far less than peers at rival institutions, which has prompted criticism they have little invested in the bank’s fortunes – or a lack of confidence in its prospects.

Ukraine

JP Morgan stuns market with Ukraine tap

IFR 2275 16 March to 22 March 2019 By

JP Morgan is expected to make a tidy profit on a tap of Ukraine’s November 2028 bonds after the US bank acted as sole bookrunner and buyer of the deal.

VW

Volkswagen announces first STS ABS deal

IFR 2275 16 March to 22 March 2019 By

The first securitisation to comply with Europe’s new STS regulations was announced by Volkswagen on Wednesday morning, potentially clearing a major blockage in 2019’s sluggish new-issue pipeline.

Sharp credit rally provides relief but can it last?

Sharp credit rally provides relief but can it last?

IFR 2275 16 March to 22 March 2019 By ,

Corporate bonds have rebounded strongly in their best start to a year since 2012, a welcome boon for investors and bank trading desks that nursed hefty losses during a dismal end to 2018, while also providing the perfect backdrop for borrowers. But such has been the rally that investors and bankers are increasingly nervous that it has gone too far and may now reverse.

SFC bans UBS from sponsoring IPOs

Hong Kong's SFC bans UBS from sponsoring IPOs

IFR 2275 16 March to 22 March 2019 By

Hong Kong’s securities regulator has suspended UBS from sponsoring IPOs for one year and fined it and three other banks a total of HK$786.7m (US$100m), in an unprecedented step by the city’s chief watchdog to clamp down on sub-standard sponsorship work.

A motorist fills up with gasoline at a service station amid rumors of a pending shortage in Port of Spain, Trinidad

Trinidad Petroleum nets loan as bond looms

IFR 2275 16 March to 22 March 2019 By

Trinidad Petroleum Holdings is in advanced debt restructuring talks with banks and has secured new loans of up to US$1.4bn based on oil reserves to ease a looming US$850m bond maturity in August.

Gavel

UK law firm IPO defies Brexit turmoil

IFR 2275 16 March to 22 March 2019 By

When law firm DWF Group filed its registration document at the start of February, the omens were not good for a UK IPO as it remained unclear if the UK would leave the European Union with a negotiated deal. Most bankers covering the UK were not keen to attempt an IPO in that climate.

Founder and CEO of e-commerce platform MercadoLibre Marcos Galperin

MercadoLibre secures US$2bn and PayPal backing

IFR 2275 16 March to 22 March 2019 By ,

MercadoLibre secured US$2bn of investment at a canter last week as the Latin American e-commerce platform agreed a tie-up with PayPal to fend off competition and drive growth higher.

IFR Magazine Top News in Full (subscription required)

People & Markets

Citi sees Q1 trading down

IFR 2275 16 March to 22 March 2019

The first quarter is shaping up to be a wash-out for fixed income, currency and commodities trading, and Citigroup added to the chorus of banks saying a rebound from December’s gloom has been appreciable, but not enough.

Rate-setters warned over regulatory overreach

IFR 2275 16 March to 22 March 2019

Central banks, which have moved beyond their essential mandate to set a country’s interest rates and now also regulate financial institutions, are laying themselves open to enhanced reputational risks.

HSBC promotes 83 to MD

IFR 2275 16 March to 22 March 2019

HSBC has appointed 83 new managing directors in its global banking and markets division in its annual round of promotions.

More than 180 EU bankers get €5m-plus payday

IFR 2275 16 March to 22 March 2019

More than 180 finance industry professionals in the European Union were paid €5m or more in 2017, including 37 who took home at least €10m.

Fed bans Goldman bankers for role in 1MDB

Fed bans Goldman bankers for role in 1MDB

IFR 2275 16 March to 22 March 2019

The US Federal Reserve banned former Goldman Sachs bankers Tim Leissner and Ng Chong Hwa, also known as Roger Ng, from any involvement in the banking industry for their role in the theft of billions of dollars from the Malaysian sovereign wealth fund.

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    Bonds

    China Orient repeats bond frenzy

    IFR 2275 16 March to 22 March 2019

    China Orient Asset Management (International) Holding (COAMI) drew a massive order book of about US$18.3bn for its US$700m dual-tranche bond offering last week, replicating the investor frenzy that peer China Cinda Asset Management stirred up last month for a US$1bn deal.

    Crowding out crushes India bonds

    IFR 2275 16 March to 22 March 2019

    Massive supply of state-backed bonds supporting off-balance-sheet government expenditure ahead of India’s elections is threatening to crowd out private-sector borrowers, counterbalancing a recent cut in official interest rates.

    Singapore: UOB makes Panda debut

    IFR 2275 16 March to 22 March 2019

    United Overseas Bank ended a long wait for Singapore’s first Panda bond issue last week, raising Rmb2bn (US$298.2m) from a three-year offering that was mostly sold to international investors.

    China: Guorui overcomes refi challenge

    IFR 2275 16 March to 22 March 2019

    Guorui Properties ended uncertainty over its ability to meet a looming bond repayment last week with a reopening of a high-yield bond issue sold less than three weeks earlier.

    Flying start for Kiwi agency

    Flying start for Kiwi agency

    IFR 2275 16 March to 22 March 2019

    The New Zealand Local Government Funding Agency set a domestic record last week with its first syndicated bond sale, raising NZ$1bn (US$680m) from an enlarged five-year offering.

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      Loans

      Take two for Healthscope buyout loan

      Take two for Healthscope buyout finance

      IFR 2275 16 March to 22 March 2019 By

      Hospital operator Healthscope is back in the leveraged finance market with a A$2.15bn (US$1.52bn) loan backing its second take-private buyout in less than a decade.

      Fish not finance: RBS chief warns of Brexit risks

      IFR 2275 16 March to 22 March 2019 By

      RBS chairman Howard Davies said a disorderly Brexit will lead to higher funding costs for households and businesses across Britain and the remaining 27 members of the European Union.

      Power Solutions cuts borrowing costs after covenant changes

      IFR 2275 16 March to 22 March 2019

      Banks rejigged the debt package to finance Brookfield Business Partners’ buyout of Johnson Controls’ Power Solutions business by moving more to loans and lowering all-in yields, but they still had to improve bond covenants amid investor complaints.

      Cityplaza towers loan closes

      IFR 2275 16 March to 22 March 2019

      Private equity firm Gaw Capital Partners and Chinese conglomerate Hengli Group have completed a HK$8.33bn (US$1.07bn) three-year loan for the purchase of office towers Cityplaza Three and Four in Hong Kong’s Taikoo district.

      China: Fosun launches US$300m deal

      IFR 2275 16 March to 22 March 2019

      Chinese conglomerate Fosun International has launched a US$300m-equivalent dual-tranche term loan into general syndication.

      China: Yingde Gases plans to pre-pay bond

      IFR 2275 16 March to 22 March 2019

      Yingde Gases Group has launched a US$300m three-year bullet term loan for Yingde Gases Investment to pre-pay a bond maturing in 2020.

      China: CDB Financial unit eyes Ninja

      IFR 2275 16 March to 22 March 2019

      Metro Excel, a fully owned unit of China Development Bank Financial Leasing, is seeking a US$200m three-year Ninja loan.

      Qantas seeks A$1.2bn refinancing

      Australia: Qantas seeks A$1.2bn refi

      IFR 2275 16 March to 22 March 2019

      Qantas Airways is seeking a A$1.180bn–$1.225bn (US$834m–$866m) three-tranche refinancing.

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      Equities

      Dexus sounds alarm with repriced EB

      Dexus sounds alarm with repriced EB

      IFR 2275 16 March to 22 March 2019

      ASX-listed real estate investment trust Dexus raised A$425m (US$300m) from a seven-year put five exchangeable bond issue last week, but had to reoffer the deal below par to address investor concerns over the pricing.

      Wuhu Token Sciences opens books

      IFR 2275 16 March to 22 March 2019

      Wuhu Token Sciences, a manufacturer of flat panel display materials and electronic components, plans to open books for a Rmb1.23bn (US$183m) six-year convertible bond issue on March 18.

      Tongwei opens books for six-year CB

      IFR 2275 16 March to 22 March 2019

      Tongwei opened books for a six-year Rmb5bn (US$745m) convertible bond offering last Friday. The coupon is 0.5% in year one before stepping up to 2.0% in year six.

      China: Hesteel plans rights issue

      IFR 2275 16 March to 22 March 2019

      Shenzhen-listed Hesteel Company plans to raise Rmb8bn (US$1.2bn) from a rights issue. The steel producer is planning to sell up to 3.19bn A-shares on a 3-for-10 basis.

      China: CSRC approves Zhejiang Sanmei IPO

      IFR 2275 16 March to 22 March 2019

      The China Securities Regulatory Commission has given final IPO approval to Zhejiang Sanmei Chemical Industry, which aims to raise Rmb1.81bn (US$270m).

      China: Merchants Sec eyes rights issue

      IFR 2275 16 March to 22 March 2019

      China Merchants Securities plans to raise up to Rmb15bn (US$2.2bn) from a rights issue of up to 2bn A-shares and H-shares.

      China: Dongzheng Auto Finance launches IPO

      IFR 2275 16 March to 22 March 2019

      Shanghai Dongzheng Automotive Finance has opened books for a Hong Kong IPO of up to HK$3.36bn (US$428m).

      China: HK listco eyes Shanghai tech IPO

      IFR 2275 16 March to 22 March 2019

      Shanghai Fudan-Zhangjiang Bio-Pharmaceutical has become the first Hong Kong-listed company to unveil plans for a Shanghai tech board IPO, after it said on March 9 it aims to raise Rmb650m (US$97m) from an A-share listing on the new board.

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      Digital Edition

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      Bank of the Year: JP Morgan

      Bank of the Year: JP Morgan

      IFR Awards 2018 By

      JP Morgan dominates investment banking in a way no other institution has in the modern era. Whatever the measure – wallet share, market share, revenue, profits, share price performance, or sheer presence – JP Morgan is the answer. For the second year running, it is IFR’s Bank of the Year.

      Read the write-ups on each award winner

      Special Reports and Roundtables

      IFR Colombia Roundtable 2019 IFR+Colombia+Roundtable+2019+Homepage+image
      IFR held its first Colombia Capital Markets Roundtable on February 8 in Bogotá, bringing together high-profile issuers, borrowers and bankers to discuss the prospects for a country that looks set for renewed growth this year.

      IFR Awards 2018 IFR+Awards+2018+Homepage+Cover
      So here’s a funny thing. The one asset class that the great and good of the global economy seems to be worried about – leveraged loans – is just about the only one that has made money for investors in 2018.

      All pain, no gain

      IFR 2275 16 March to 22 March 2019

      WHILE THERESA MAY’S government has officially lost control of Brexit, its opposite number in Germany is exerting its power in a very different way: by apparently breaking Christian Sewing’s opposition to Deutsche Bank considering a merger with Commerzbank.