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Thursday, 15 November 2018

UPDATE 1-High-yield energy junk bonds take a beating

15 November 2018 By ,

US high-yield energy junk bonds have been battered in the past couple of weeks with average spreads in the sector now trading at their widest levels in more than a year.

Jetpak to float and refinance outstanding bond

Jetpak to float and refinance outstanding bond

15 November 2018

Jetpak, a Swedish express delivery business largely servicing the B2B segment, has begun pre-marketing a Nasdaq First North Premier IPO, with primary proceeds of approximately SKr235m (US$26m) to be used alongside new bank debt to repay and refinance an outstanding SKr377.5m bond.

Germany

Munich Re underwrites success with generous premium

15 November 2018 By

A healthy new issue premium helped Munich Re pull off a strong result for its first subordinated bond since 2012, uncovering over €2.5bn of demand as broader markets sold off and had to shelve a covered bond.

Bermuda sets IPTs of 200bp area on US$600m 10-year bond: lead

15 November 2018

Bermuda announced a new US$600m 10-year bond on Thursday as part of a liability management operation.

IFR SNAPSHOT-Volatility dominates; IG primary sees one offering

15 November 2018 By

A wave of volatility is sweeping the markets, driving most IG issuers to the sidelines, and pushing spreads wider in the secondary.

High-yield energy junk bonds take a beating

High-yield energy junk bonds take a beating

15 November 2018 By

US high-yield energy junk bonds have been battered in the past couple of weeks with average spreads in the sector now trading at their widest levels in more than a year.

Gilts' Brexit rollercoaster

SRB sets out post-Brexit advice on UK law MREL bonds

15 November 2018 By

The Single Resolution Board, which together with the European Central Bank decides how failing European Union banks should be resolved, has issued a paper setting out how banks under its watch should cope with Brexit.

MOVES-Exotix strikes deal with Fundamental Intelligence

15 November 2018 By

Emerging markets broker Exotix Capital has struck a deal with economic research provider Fundamental Intelligence to distribute its products to Exotix clients.

Norway

Ice Group begins NKr3bn Oslo float

15 November 2018

Norwegian mobile broadband business Ice Group is targeting NKr3bn (US$353m) in primary proceeds from an Oslo listing. Ice Group operates in Norway, Sweden and Denmark, with proceeds from the float to expand its network in Norway and drive subscriber and revenue growth.

Racks of samples are seen in a pharmaceutical lab

Hansa Medical ABB totals US$75m

15 November 2018

Swedish biopharma Hansa Medical raised SKr453m (US$50m) in an accelerated bookbuild on Tuesday evening. Selling by the company’s largest shareholder Nexttobe at the same time took the deal size to SKr679.6m.

DuPont chemical plant in LaPorte, Texas

DowDuPont jumbo bond lacks chemistry in volatile market

14 November 2018 By

Chemicals company DowDuPont has launched a long-awaited US$12.7bn bond to fund the spin-off of its material sciences and agriscience divisions, but market volatility forced the borrower to raise less and pay more than expected.

Logo of PG and E, the parent company of Pacific Gas and Electric

PG&E bonds weaken amid Camp Fire investigation

14 November 2018 By

Pacific Gas & Electric bonds are trading as much as 200bp wider following the company’s Securities and Exchange Commission disclosure of an electrical incident just prior to the start of the so-called “Camp Fire” that has blazed in California, killing at least 48 people.

Danske Bank branch

Danske Bank seeks shelter from the storm in covered market

14 November 2018 By

Danske Bank is preparing to sell its first bond deal in a major currency since June, testing investor demand as the bank continues to operate under the cloud of a money laundering scandal.

People holds French and European flags

Ile de France Mobilites hires banks for €5bn EMTN programme

14 November 2018 By

Ile de France Mobilites has appointed Credit Agricole, Natixis, HSBC and Societe Generale as lead arrangers for a €5bn EMTN programme, according to two sources familiar with the matter.

Logo of Grainger

Grainger tightens GRIP with £346.7m rights issue

14 November 2018

UK residential landlord Grainger is buying out the majority stake in its Grip partnership with asset manager APG and funding the acquisition with a £346.7m rights issue.

Belgian flag

Intervest launches rights issue to fund investment pipeline

14 November 2018

Belgian real estate group Intervest Offices & Warehouses is targeting €99.85m from a capital increase to provide flexibility for acquisition financing while maintaining a debt ratio of 45%-50%.

All Latest news

Time to move on

IFR 2259 10 November to 16 November 2018

The one undeniably good outcome for Mozambique after it reached an agreement in principle with bondholders last week is that an end is finally in sight to a sorry saga that began with the issuance of “tuna bonds” in 2013.

Top News

SpaceX

Space oddity stirs loan demand

IFR 2259 10 November to 16 November 2018 By ,

Billionaire Elon Musk’s rocket and spacecraft company SpaceX is testing lenders’ risk appetite as it seeks to raise a US$750m term loan that will give the company additional balance sheet cash.

A VW emblem is pictured on a Volkswagen car in a delivery tower at the plant of German carmaker in Wolfsburg

VW makes US$8bn return to the US

IFR 2259 10 November to 16 November 2018 By

Volkswagen hit the corporate bond auto sector last week with its first US dollar issuance since it was caught cheating on emissions tests in 2015.

Malaysian Prime Minister Mahathir Mohamad gives a speech at Chulalongkorn University, in Bangkok, Thailand.

Malaysia reveals 'true' deficit

IFR 2259 10 November to 16 November 2018 By

Bond investors shrugged off news of weaker than expected Malaysian public finances after the new government of Prime Minister Mahathir Mohamad accounted for the impact of alleged corruption under the previous government in its first budget.

Saudi

'Business as usual' for Saudi loan market

IFR 2259 10 November to 16 November 2018 By

Bankers are saying it is “business as usual” in the Saudi Arabian syndicated loan market, despite the global furore following the murder of journalist Jamal Khashoggi in the Saudi consulate in Istanbul on October 2.

Maputo's skyline

Mozambique gives in to bondholder demands

IFR 2259 10 November to 16 November 2018 By ,

Investors holding bonds issued by Mozambique appear to have won a major victory in their restructuring fight with the African sovereign.

Goldman Sachs

Goldman gets selective with partners

IFR 2259 10 November to 16 November 2018 By ,

Goldman Sachs has made just 69 employees new partners - the smallest cohort promoted to the top ranks at the US bank since the firm went public in 1999.

Wayne Byres, chairman of Australian Prudential Regulation Authority (APRA), speaks at a panel of regulators in Sydney, Australia.

Aussie majors to triple T2 pile

IFR 2259 10 November to 16 November 2018 By

Australia’s four major banks may need to issue up to A$83bn (US$60.5bn) of new Tier 2 capital after regulators proposed an increase in total capital requirements.

Inalum

Inalum strikes gold on debut

IFR 2259 10 November to 16 November 2018 By

State-owned miner Indonesia Asahan Aluminium (Inalum) made a striking US$4bn debut in the offshore bond markets last week with a trade that will fully fund its purchase of a majority stake in one of the world’s largest copper and gold deposits.

Senate Majority Leader Mitch McConnell

US lenders unfazed by political gridlock

IFR 2259 10 November to 16 November 2018 By ,

The US syndicated loan market is optimistic that it can maintain its record-breaking pace of lending despite looming political deadlock in Washington after the Democrats regained control of the House of Representatives and Republicans held the Senate in the November 6 midterm elections.

'Mortar board' hats are thrown in the air following a graduation ceremony for students at University of Brighton

UK university regulator says institutions won't be bailed out

IFR 2259 10 November to 16 November 2018 By

The UK’s university regulator has warned that it will not step in to bail out institutions that fall into financial difficulties, as it wades into a raging debate around an explosion in borrowing in the sector – much of it based on the assumption that the government won’t let a university go under.

A view shows the Standard & Poor's building in New York's financial district.

S&P flags China property risks

IFR 2259 10 November to 16 November 2018 By

Chinese developers are at risk of a liquidity squeeze as the country’s property sector enters a downturn and credit markets stay tight, Standard & Poor’s warned last week.

IFR Magazine Top News in Full (subscription required)

People & Markets

Landesbanks in line of fire

IFR 2259 10 November to 16 November 2018

German public sector bank NordLB has opened its books to about six potential investors in a bid to strengthen its weak capital position, which was laid bare by its poor showing in this month’s European bank stress test results.

Natixis set for markets unit overhaul

IFR 2259 10 November to 16 November 2018

Natixis is to unveil plans to overhaul its markets business, market sources familiar with the plan told IFR.

Berenberg cuts equities team in U-turn

IFR 2259 10 November to 16 November 2018

Berenberg is to reduce its equities team and cut about 100 jobs - with most of these expected to go from its London office.

Intrepid teams with Cowen to win energy deals

IFR 2259 10 November to 16 November 2018

The independent investment bank set up by Skip McGee after he left Barclays, Intrepid Financial Partners, is enlisting friends in an effort to punch above its weight in energy banking.

Who's moving where

IFR 2259 10 November to 16 November 2018

Houlihan Lokey has appointed Martin Bastian as head of chemicals for Europe. He joined from Citigroup and will be based in the US firm’s Frankfurt office, starting in January. At Citi, he was head of EMEA chemicals. He previously worked at Credit Suisse, Goldman Sachs and Merrill Lynch, covering the same sector. Bastian will report to Ulrich Graebner, head of corporate finance for Germany, and Bill Peluchiwski, global head of industrials.

    More from People & Markets

    Bonds

    Green bonds wilt after solar delay

    IFR 2259 10 November to 16 November 2018

    A severe delay in the completion of Quantum Solar Park Semenanjung’s power projects is casting a shadow over Malaysia’s Green finance ambitions.

    NIBC lays claim to debut sterling

    IFR 2259 10 November to 16 November 2018

    NIBC Bank managed to pull off a debut trade in the notoriously challenging sterling market last Thursday, although demand was slow and pricing ended up in line with initial guidance.

    Colorado's fracking ballot worries investors

    IFR 2259 10 November to 16 November 2018

    A ballot on fracking in Colorado was closely watched by investors last week after a sell-off in stocks and bonds of some oil and gas exploration companies over worries that future drilling might have been severely restricted.

    Intra-IG downgrades are biggest risk to sector, Barclays says

    IFR 2259 10 November to 16 November 2018

    A lot of focus is placed on the threat of investment-grade companies falling to junk, but the bigger risk to IG valuations stems from downgrades within the investment-grade market, according to research from Barclays.

    BPER closes Aqui NPL ABS

    IFR 2259 10 November to 16 November 2018

    Banca Popolare Emilia Romagna has closed Aqui SPV Srl, a securitisation of €2.082bn Italian NPLs via arrangers Mediobanca and JP Morgan.

      More from Bonds

      Loans

      SpaceX

      Space oddity stirs loan demand

      IFR 2259 10 November to 16 November 2018 By ,

      Billionaire Elon Musk’s rocket and spacecraft company SpaceX is testing lenders’ risk appetite as it seeks to raise a US$750m term loan that will give the company additional balance sheet cash.

      Saudi

      'Business as usual' for Saudi loan market

      IFR 2259 10 November to 16 November 2018 By

      Bankers are saying it is “business as usual” in the Saudi Arabian syndicated loan market, despite the global furore following the murder of journalist Jamal Khashoggi in the Saudi consulate in Istanbul on October 2.

      ​China: Guodong debuts with offshore loan

      IFR 2259 10 November to 16 November 2018

      Guodong Communication Group is making its debut in the offshore market with a three-year loan of €100m–€150m.

      Three win mandate on Microlife

      IFR 2259 10 November to 16 November 2018

      Morgan Stanley Private Equity Asia has picked three banks on a US$205m loan backing its leveraged buyout of medical equipment maker Microlife for a deal valued at NT$9.35bn (US$305m).

      Indonesia: BTN launches US$100m loan

      IFR 2259 10 November to 16 November 2018

      State-owned lender Bank Tabungan Negara has launched a US$100m one-year financing into general syndication at two ticket levels.

      A view of Bharat Petroleum Corporation Ltd refinery is seen in Mumbai

      India: BoB bids aggressively for BPCL

      IFR 2259 10 November to 16 November 2018

      State-owned Bank of Baroda is tipped to win the mandate on a US$300m five-year loan for Bharat Petroleum Corp after submitting an extremely tight bid.

      India: Power Grid picks SMBC for Samurai

      IFR 2259 10 November to 16 November 2018

      State-owned electric utility Power Grid Corp of India has mandated SMBC on a ¥22bn (US$195m) 12-year loan, marking its debut international borrowing and the longest unsecured financing for an Indian borrower.

      I Squared

      I Squared relaxes covenants for HGC A&E

      IFR 2259 10 November to 16 November 2018 By Apple Lam

      I Squared Capital is looking to relax the financial covenants of the HK$7.926bn (US$1.02bn) amend-and-extend exercise for the five-year leveraged buyout facility used to buy Hutchison Global Communications.

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      Equities

      A man stand near flight information boards at Kuala Lumpur International Airport (KLIA) outside Kuala Lumpur.

      Malaysia proposes airport REIT

      IFR 2259 10 November to 16 November 2018

      Malaysia plans to set up the world’s first airport REIT to kick-start the privatisation of infrastructure assets and offer some welcome diversification to the country’s institutional investors.

      PICC logo

      Tech funds switch PICC IPO strategy

      IFR 2259 10 November to 16 November 2018

      A group of Chinese mutual funds formed earlier this year to invest in newly listed technology stocks have made their first equity investments, backing an insurance company that traces its roots back to 1949.

      Price set for Safran CB buyback

      IFR 2259 10 November to 16 November 2018

      Pricing for the buyback of aeronautics group Safran’s OCEANE CBs due 2020 came at €113.33 per OCEANE on Friday November 2.

      Norway: Survival suit maker to float in Oslo

      IFR 2259 10 November to 16 November 2018

      Hansen Protection, a supplier of survival suits, including life jackets and rescue gear, is targeting NKr550m-NKr600m (US$65m-$71m) in an Oslo IPO alongside undetermined selling by shareholder IK Investment Partners.

      Eq WIN 2259

      Week in numbers - November 10 2018

      IFR 2259 10 November to 16 November 2018

       

      Norway: Kongsberg kicks off NKr5bn capital increase

      IFR 2259 10 November to 16 November 2018

      Subscription began on Wednesday for the NKr5bn (US$601.5m) rights issue by technology group Kongsberg, proceeds for which will part-finance its acquisition of the commercial marine business of Rolls-Royce Holdings. The consideration for the acquisition is £500m.

      Partial buyback of outstanding AMS paper

      IFR 2259 10 November to 16 November 2018

      Austrian sensor maker AMS is to carry out a partial buyback of its US$350m 0.875% 2022 convertible bonds and/or €600m 0% 2025 paper. The bonds were only issued in September 2017 and February 2018, with this year’s new issue performing terribly leaving investors nursing hefty losses.

      Finland: Oma Savings Bank launches €35m-plus Helsinki float

      IFR 2259 10 November to 16 November 2018

      Finland’s Oma Savings Bank launched pre-marketing for a €35m-plus IPO on Nasdaq Helsinki, with a banker involved calling it a “stable little gem”. The €35m target is primary, but there may be a secondary tranche dependent on demand.

      More from Equities

      Digital Edition

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      Beckett

      A golden opportunity in stressed Turkish markets

      By David Beckett, head of Europe, SC Lowy, Berkay Oncel, European loan trader, SC Lowy

      Turkey’s secondary debt markets are starting to offer select opportunities following this year’s collapse in the Turkish lira and as a growing number of borrowers face difficulties caused by the weaker currency and a difficult operating environment.

      All Commentary

      Special Reports and Roundtables

      IFR US ECM Roundtable 2018 IFR+US+ECM+Roundtable+2018+Cover+Image
      IFR held its US ECM Roundtable on September 13 as stock market indices were nearing historic highs. Investors were showing greater resolve to chase performance by participating in ECM transactions not only in the public markets but in private as well.

      IFR IMF/World Bank Report 2018 IFR+IMF+2018+Cover+page
      If there is one thing that characterises both the International Monetary Fund and the World Bank, it is, by their very nature, their internationalism. Their results over their 70-odd-year histories have been achieved through collaboration – the greater the collaboration, the better the result.

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

      A proper partnership

      IFR 2259 10 November to 16 November 2018

      PARTNERSHIP DAY AT Goldman Sachs is always time for the banks’ brightest and best to celebrate their elevation to the firm’s inner sanctum – and for the rest of us to reflect on how we might have done things differently if we had our time again.