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Wednesday, 16 January 2019

UBS chief executive Andrea Orcel leaves after attending a UK parliamentary inquiry into Libor rates

Santander drops Orcel as next CEO, blames pay gap

16 January 2019 By Andres Gonzalez

Santander said Italian banker Andrea Orcel would not take over as chief executive after it could not meet his pay expectations, in a rare and unusual U-turn on such a high-level appointment.

Disney bonds

Fox raises US$6.8bn to fund spin off from Disney

16 January 2019 By

Fox Corp launched a US$6.8bn five-part US dollar bond on Tuesday that will help finance Disney’s spin-off of Fox News and sports assets from Twenty-First Century Fox, banks managing the trade told IFR.

PG&E misses bond payment as default looms

16 January 2019 By

PG&E skipped an interest payment on one of its bonds on Tuesday after the struggling California utility said it planned to file for Chapter 11 bankruptcy before the end of the month.

jpm

JP Morgan posts rare miss on FICC slump

15 January 2019 By

JP Morgan posted a rare earnings miss with performance in the quarter being dragged down by a severe slow down in fixed income, commodity and currency trading in the final month of the fourth quarter.

Citigroup reviews China JV setup

Citi sees strong demand for US dollar bond

15 January 2019 By

Citigroup saw strong investor demand on Tuesday for its first US dollar bond offering in six months, the first in a slew of expected bond trades from the biggest US banks after earnings.

uruguay

Uruguay breaks silence in LatAm primaries

15 January 2019 By

Uruguay was on course on Tuesday to become the first LatAm borrower to tap the international markets this year following a long drought in the region’s primaries.

Europe cements its place

MORHomes wraps up investor meetings for debut Social bond

15 January 2019 By

MORHomes, a borrowing vehicle for not-for-profit social housing providers, has grand plans to revamp the way smaller housing associations fund developments, though its forthcoming debut trade is likely to be relatively conservative dip in the primary waters.

Care UK

Care UK to redeem notes via asset sales

15 January 2019 By

Care UK announced plans to redeem its outstanding bonds through asset sales on Tuesday, another blow to sterling supply which is expected to remain weak this year, thanks to Brexit uncertainty and various sectoral challenges.

Cerberus Capital Management logo

Cerberus considering alternatives for TPMF 2016-Granite 3

15 January 2019 By

Cerberus, which in December hired advisors to explore a potential refinancing of two 2016 securitisations of legacy Northern Rock mortgages, said today a 2016 securitisation of Northern Rock consumer loans is now being included in that process as well.

An Italian Army parachutist hoists Italian flag during the Republic Day military parade in Rome

Italy leaves concerns behind to price largest BTP

15 January 2019 By

Italy has priced a €10bn 3.35% March 2035 BTP on the back of €35.5bn of orders, its largest internationally syndicated deal on record.

The company logo of the Bank of America and Merrill Lynch is displayed at its office in Hong Kong.

Risk appetite for LatAm hits new highs: BAML survey

15 January 2019 By

Risk appetite for buyside accounts investing in Latin America have reached their highest levels since Bank of America Merrill Lynch started surveying such investors.

IFR SNAPSHOT-Citibank, Fox join IG primary

15 January 2019 By

Four deals are expected to price in the IG primary today as issuers look favorably on the market.

Deutsche Bank

Deutsche breaks FIG silence with €500m Pfandbrief raid

15 January 2019 By

Deutsche Bank pulled off a swift raid on a quiet FIG market on Tuesday as it reeled in €1.3bn of orders for a €500m seven-year covered bond, boosted by the extra juice the bank offers relative to country peers.

Logo of the European Investment Bank

EIB takes out €5bn in buoyant euro market

15 January 2019 By

Investors showered European Investment Bank’s 10-year EARN with more than €16bn of orders, galvanised by the performance of recent deals and the attractive pick-up to last week’s trade at the tenor from KfW.

UK and EU flags

Companies look to get quids in before Brexit

15 January 2019 By

Sterling borrowers stayed on the sidelines in Tuesday’s corporate bond market ahead of the UK parliament’s Brexit vote this evening.

Pile of one hundred dollar notes

US dollar market shines with Italy centre stage in euros

15 January 2019 By

Minimal or non-existent concessions are still the order of the day in the SSA US dollar market, which remains undersupplied despite four deals pricing on Tuesday and expectations of more supply to come.

All Latest news

Desert storm

IFR 2266 12 January to 18 January 2019

What do Boeing, GE, Bechtel and Rolls-Royce (to take a random sample) have in common with BNP Paribas, Citigroup, HSBC and JP Morgan?

Top News

Saudi Arabian flag

Investors look beyond Khashoggi on Saudi return

IFR 2266 12 January to 18 January 2019 By

The spectre of Jamal Khashoggi’s murder just three months ago failed to impede Saudi Arabia’s return to the international bond market as investors looked past the assassination to get fully behind the deal.

A general view of the Danske Bank Estonian branch in Tallinn, Estonia

Danske secures US$3bn SNP after nail-biting week

IFR 2266 12 January to 18 January 2019 By

Danske Bank persuaded investors to back a US$3bn senior non-preferred (SNP) issue on Friday, after the threat of new allegations in an ongoing money-laundering scandal temporarily scuppered the trade earlier in the week.

Italy

Italy tipped for return after spectacular week for sovereigns

IFR 2266 12 January to 18 January 2019 By

The Republic of Italy could emerge this week with its first institutionally targeted bond syndication in a year, encouraged by deals last week from Belgium, Ireland and Portugal amassing more than €70bn of combined demand.

Securities and Exchange Commission logo

US shutdown puts IPOs in deep freeze

IFR 2266 12 January to 18 January 2019 By

With the US government shutdown extending into its fourth week, investment banks are facing the increasing likelihood of a January without a single corporate IPO pricing.

Telecom Italia tower

Telecom Italia kicks off 2019 high-yield

IFR 2266 12 January to 18 January 2019 By

Telecom Italia opened 2019’s European high-yield market with aplomb, attracting over €4.5bn of investor demand for a €1.25bn April 2024 deal, which capitalised on the positive news flow out of Italy.

An India Rupee note is seen in this illustration photo.

SBI faces higher fees for QIP

IFR 2266 12 January to 18 January 2019 By

Banks have asked for unusually high fees from a public-sector issuer to underwrite State Bank of India’s up to Rs200bn (US$2.9bn) qualified institutional placement in view of current market volatility.

Anta Sports kicks off China M&A

Anta Sports kicks off China M&A for 2019

IFR 2266 12 January to 18 January 2019 By , ,

Anta Sports Products has launched syndication of a five-year €2.2bn loan with a foreign bank-dominated arranger group, demonstrating that sentiment among international lenders remains strong for Chinese privately owned enterprises despite the trade war between the US and China.

Maputo's skyline

Tuna boats, 50m chickens and kickbacks: the Mozambique scam

IFR 2266 12 January to 18 January 2019 By

US prosecutors said an alleged scam involving US$2bn of loans to Mozambique arranged by three former Credit Suisse bankers and others saw at least US$200m in bribes and kickbacks paid out, and it was all set in motion two years before the first loan was signed.

Mozambique's national flag

Allegations likely to delay Mozambique restructuring

IFR 2266 12 January to 18 January 2019 By

Mozambique’s drawn-out plans to restructure its debts are likely to be further delayed after the latest revelations from US prosecutors about how the African country originally incurred some of its loans, through an alleged fraud involving bribes paid to former finance minister Manuel Chang.

A worker counts U.S. dollar bills at a money changer in Manila

Asian bonds defy early gloom

IFR 2266 12 January to 18 January 2019 By

Chinese property deals have accounted for nearly half of the US$6.9bn sales of Asian bonds, excluding Japan and Australia, in the year so far, as issuers have taken advantage of improved market conditions. While the volatility that took hold in Asian credit markets last year looks set to continue into 2019, the year has begun with enough momentum to raise hopes that issuance volumes could nevertheless resume climbing.

ADB reaps Green rewards

ADB reaps Green rewards

IFR 2266 12 January to 18 January 2019 By

The Asian Development Bank smashed Green Kangaroo bond records last Tuesday, with a debut A$1bn (US$713m) five-year sale that underlines the benefits of placing socially responsible labels on new issues Down Under.

IFR Magazine Top News in Full (subscription required)

People & Markets

Pain at Deutsche, optimism at US banks

IFR 2266 12 January to 18 January 2019

Investment bankers working at European firms are braced for a depressed bonus season after their US counterparts again took the share of the spoils last year. Deutsche Bank, in particular, looks likely to slash its bonus pool.

Sears creditors view Lampert offer with scepticism

IFR 2266 12 January to 18 January 2019

Sears Holdings chairman Eddie Lampert topped up his offer for the bankrupt US retailer with a revised takeover bid through his hedge fund ESL Investments of more than US$5bn for a majority of its best stores.

Raft of changes in Barclays DCM top team

IFR 2266 12 January to 18 January 2019

Travis Barnes has been appointed sole global head of debt capital markets at Barclays as part of a spate of promotions at the British bank, which will also see Pete Mason becoming head of DCM for Europe, the Middle East and Africa.

Who's moving where....

IFR 2266 12 January to 18 January 2019

KeyBanc Capital Markets has hired Warren Geiger as a managing director overseeing the new issue and secondary market trading of commercial mortgage-backed securities in its fixed-income platform. He will be based in New York and report to Tom Goodrick, head of fixed-income trading. Geiger was most recently head of secondary CMBS trading at Societe Generale. He was previously co-head of secondary market trading at Citigroup. KeyBanc Capital Markets is the investment banking arm of KeyCorp.

Bank of China

China to tweak bank capital rules

IFR 2266 12 January to 18 January 2019

Chinese banks could soon have a new route to raise capital, expanding the range of investors that can buy their securities, following an announcement by the central bank.

    More from People & Markets

    Bonds

    Offshore test for Indian workout

    IFR 2266 12 January to 18 January 2019

    Singapore-based Agritrade Resources is planning to tap the US dollar bond market to acquire stressed power assets in India, marking the first offshore financing in a wave of restructurings in the sector.

    Corporate China off and running

    IFR 2266 12 January to 18 January 2019

    Riding on improved market sentiment, new dollar bond issuance from Chinese corporates was in full swing last week as issuers seized the short new issue window before the Lunar New Year holidays in early February.

    Philippines locks funding at attractive price

    IFR 2266 12 January to 18 January 2019

    The Republic of the Philippines, rated Baa2/BBB/BBB, achieved competitive pricing for the first Asian sovereign bond offering of the year, taking advantage of improved market conditions to keep the new issue premium in the low double digits.

    BNP Paribas draws strong demand in nervy market

    BNP Paribas draws strong demand in nervy market

    IFR 2266 12 January to 18 January 2019

    BNP Paribas (Aa3/A/A+) successfully raised ¥140.2bn (US$1.29bn) from a dual-tranche callable senior non-preferred Euroyen offering, taking the recent market volatility in its stride as absolute yield levels and spreads were hefty enough to attract Japanese investors.

    CBA pays up to reopen market

    CBA pays up to reopen market

    IFR 2266 12 January to 18 January 2019

    Commonwealth Bank of Australia (Aa3/AA–/AA–) reopened the domestic bond market last Tuesday with a self-led A$2.5bn (US$1.78bn) dual-tranche senior unsecured five-year issue that confirmed a further rise in wholesale funding costs.

      More from Bonds

      Loans

      Anta Sports kicks off China M&A

      Anta Sports kicks off China M&A for 2019

      IFR 2266 12 January to 18 January 2019 By , ,

      Anta Sports Products has launched syndication of a five-year €2.2bn loan with a foreign bank-dominated arranger group, demonstrating that sentiment among international lenders remains strong for Chinese privately owned enterprises despite the trade war between the US and China.

      Hong Kong: Evergrande signs HK$8bn club

      IFR 2266 12 January to 18 January 2019

      China Evergrande Group signed a HK$8bn two-year term loan last month with a commercial property in Hong Kong’s Wan Chai district as security.

      Hong Kong: Haitong Intl Sec launches refi

      IFR 2266 12 January to 18 January 2019

      Haitong International Securities Group has launched a HK$13.8bn (US$1.77bn) three-year revolving credit facility. Funds are to refinance the outstanding amount of a HK$12.8bn three-year term loan and revolver it signed in March 2016 and for working capital.

      Gaw, Hengli seek HK$8.33bn loan to buy Cityplaza towers

      Gaw, Hengli seek loan for Cityplaza

      IFR 2266 12 January to 18 January 2019

      Private equity firm Gaw Capital Partners and Hengli Group are seeking a HK$8.33bn (US$1.07bn) three-year leveraged buyout loan to buy office towers Cityplaza Three and Four in Hong Kong’s Taikoo district.

      CORRECTION

      IFR 2266 12 January to 18 January 2019

      In the article ”Country Garden signs loan” published in the January 5 issue, the breakdown of the facility should have read as follows: The two-year tranche totals US$100m, while the three-year portion has a size of about US$831m-equivalent.

      China: New Oriental Education closes debut

      IFR 2266 12 January to 18 January 2019

      Nasdaq-listed New Oriental Education & Technology Group has closed a debut three-year loan of US$200m.

      China: Haitong UniTrust pays up for refi

      IFR 2266 12 January to 18 January 2019

      Haitong UniTrust International Leasing has launched a US$100m two-year term loan.

      China: Anta Sports loan launched

      IFR 2266 12 January to 18 January 2019

      Hong Kong-listed Anta Sports Products has launched into general syndication a €2.2bn five-year recourse loan backing a Chinese consortium’s proposed takeover of Finland’s Amer Sports . (See Top News.)

      More from Loans

      Equities

      ECM deal volume to drop in 2019

      ECM deal volume to drop in 2019

      IFR 2266 12 January to 18 January 2019

      ECM bankers in Asia-Pacific are facing challenges to maintain deal activity in 2019 given the lack of multi-billion IPOs from China and increased market volatility.

      South Korea: SK Magic files for KRX IPO

      IFR 2266 12 January to 18 January 2019

      Kitchen appliance maker SK Magic, an arm of conglomerate SK Group, is seeking to list on the Korea Exchange in the second half this year, people with knowledge of the deal have said.

      South Korea: Kyobo Life adds banks for IPO

      IFR 2266 12 January to 18 January 2019

      Kyobo Life Insurance, South Korea’s third-largest life insurer by assets, has added Citigroup, JP Morgan and Mirae Asset Global Investments to the institutions working on its planned listing that could raise about US$1bn, people with knowledge of the float said.

      Japan: Mitsui Fudosan set for follow-on

      IFR 2266 12 January to 18 January 2019

      Mitsui Fudosan Logistics Park, a real estate investment trust, plans to raise up to ¥33.8bn (US$310.6m) through a global offering of units, based on a minimum 2.5% discount to the ¥313,500 closing price on January 9.

      Japan ECM set for quieter 2019

      IFR 2266 12 January to 18 January 2019

      Japan’s equity capital market is expected to be quieter in 2019 in the likely absence of jumbo deals now that SoftBank Corp’s disappointing performance has dented investor sentiment.

      Indonesia: Titan Infra plans up to US$400m IPO

      IFR 2266 12 January to 18 January 2019

      Energy infrastructure and logistics company Titan Infra Energy is hiring banks for a US$300m–$400m IPO later this year, people with knowledge of the transaction said.

      India: Prince Pipes IPO gets Sebi approval

      IFR 2266 12 January to 18 January 2019

      Prince Pipes and Fittings has obtained Securities and Exchange Board of India approval for a Rs6bn (US$86m) IPO, but has not yet decided on the launch date.

      Hong Kong: CKI trims Power Assets stake

      IFR 2266 12 January to 18 January 2019

      CK Infrastructure raised HK$2.3bn (US$293m) through the sale of Power Assets shares last Wednesday, riding on a 2.27% jump in the Hong Kong stock market that day.

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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 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.

      IFR IMF/World Bank Roundtable 2018 IFR+IMF+World+Bank+RT+2018+Cover+Homepage
      Delegates at the IMF’s annual meetings in Bali got an uncomfortable reminder of Asia’s vulnerability to unforeseen shocks with an earthquake in the small hours of October 11. The financial markets have been doing their part, too.

      If it aint woke…

      IFR 2266 12 January to 18 January 2019

      THE POPULARITY OF Veganuary has raised awareness of the climate implications of eating meat and some investors are tucking into the new diet.