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Monday, 25 June 2018

Xiaomi the way to go home

IFR 2239 23 June to 29 June 2018

When it comes to Chinese equities, two wrongs sometimes do make a right.

Top News

Danske Bank branch

Danske underlines new reality in AT1

IFR 2239 23 June to 29 June 2018 By

Danske Bank gave a glimpse into the concession demanded by buyers of Additional Tier 1 debt as it brought the first such trade for two months following a protracted bout of volatility.

A customer holds a can of cream of celery Campbell's Soup at a grocery store in Phoenix, Arizona

M&A bond binge fans debt worries

IFR 2239 23 June to 29 June 2018 By ,

When Campbell Soup came to the investment-grade bond market in March with a US$5.3bn deal to finance its acquisition of Snyder’s-Lance, investor response was lukewarm.

A customer walks out of a Xiaomi store in Beijing, China.

Xiaomi presses on after CDR shock

IFR 2239 23 June to 29 June 2018 By

Chinese smartphone maker Xiaomi has covered its Hong Kong IPO of up to HK$48bn (US$6.1bn) at a lower-than-expected valuation, following its surprise move to delay a landmark offering of China depositary receipts.

novo banco espirito santo bes

Novo Banco set for crucial market test

IFR 2239 23 June to 29 June 2018 By ,

Novo Banco is hoping to sell a €400m Tier 2 bond in what would be the biggest capital markets test for the beleaguered Portuguese lender since a rescue package agreed in 2017.

Disney characters Mickey Mouse and Minnie Mouse pose in front of the Castle

Banks profit as battle for Fox escalates

IFR 2239 23 June to 29 June 2018 By

Banks arranging nearly US$36bn of loans to support Walt Disney’s sweetened US$71.3bn bid to buy Twenty-First Century Fox’s media assets stand to pocket around US$200m in fees, boosting profits from an increasingly hot market for acquisitions.

Khalid al-Hussan, Chief Executive Officer of the Saudi Stock Exchange (Tadawul), speaks during a news conference after the inclusion of MSCI EM to the Saudi Stock Market in Riyadh, Saudi Arabia June 21, 2018.

Argentina and Saudi join EM club

IFR 2239 23 June to 29 June 2018 By

Index provider MSCI’s decision to add Argentina and Saudi Arabia to its emerging markets index last week provided a much-needed boost to an asset class seeing considerable pushback of late.

Eun Sung-soo, Chairman of the Board of Directors and Chief Executive Officer of Korea Investment Corporation, attends the Asian Financial Forum in Hong Kong, China.

Kexim sets Samurai record

IFR 2239 23 June to 29 June 2018 By

Export-Import Bank of Korea last Thursday raised an impressive ¥120bn (US$1.08bn) from the biggest Samurai bond issue ever from Asia ex-Australia, making the most of the positive momentum following the historic summit between the US and North Korea.

Circus Oz performers dressed as red kangaroos pose for pictures at Darling Harbour in Sydney.

Tax pledge to boost Aussie bonds

IFR 2239 23 June to 29 June 2018 By

Australia’s under-utilised bond market may receive a welcome fillip if the opposition Labor Party, which is ahead in the polls, wins the next federal election.

The logo of Swiss bank UBS is seen at a branch office in Basel, Switzerland.

UBS eyes revenue streams from 'big data' push

IFR 2239 23 June to 29 June 2018 By

UBS is eyeing a fresh milestone for Evidence Lab, the venture it set up four years ago to make better use of “big data” in its research, with the Swiss lender on the cusp of generating new revenue streams from the wealth of data it has built up.

The logo of German drug maker Bayer

Landmark deals show market resilience

IFR 2239 23 June to 29 June 2018 By

Europe’s investment-grade corporate market is showing signs of recovery after a few tough weeks, led by Bayer’s jumbo offering, though issuance windows are fitful.

IFR Magazine Top News in Full (subscription required)

People & Markets

Advisory, underwriting lift Jefferies

IFR 2239 23 June to 29 June 2018

M&A advisory and bond and equity underwriting revenues will continue to outshine trading in the second quarter for Wall Street’s banks if results from independent bank Jefferies Group are any indication.

Big banks feel more pressure in stress test

IFR 2239 23 June to 29 June 2018

The US Federal Reserve increased the stress factors on the largest banks in the latest version of its annual healthcheck, pushing several close enough to the breaking point where capital return plans could take a hit.

FSB issues bank bail-in guidelines

IFR 2239 23 June to 29 June 2018

The Financial Stability Board has issued a series of guidelines to banking regulators on how to identify capital that is eligible to be bailed in, should a bank require such support, and how to implement related resolution plans.

Goldman names Scher, Coleman co-heads of financing

IFR 2239 23 June to 29 June 2018

Goldman Sachs has named Susie Scher and Denis Coleman as co-heads of its global financing group, tasked with expanding and further integrating its financing businesses.

Banco Popular failure details to be revealed

IFR 2239 23 June to 29 June 2018

The Single Resolution Board has been told to reveal additional details of deposit withdrawals from Banco Popular in the month prior to the Spanish lender’s resolution and immediate sale to Santander for €1 a year ago.

    More from People & Markets

    Bonds

    South Korea: Summit boosts offshore bonds

    IFR 2239 23 June to 29 June 2018

    A strong response to the first dollar bond deal from a South Korean issuer since this month’s historic summit between the US and North Korea has given encouragement to other issuers from the country, who are lining up offshore bond issues.

    China developers rethink call options

    IFR 2239 23 June to 29 June 2018

    A tough primary market and rising funding costs have brought call options on Chinese property bonds into focus, with several issuers planning to skip call dates on offshore bonds.

    Corporate bond deals priced in the week ending June 22

    IFR 2239 23 June to 29 June 2018

    Pricing dateIssuerAmountMaturityCoupon (%)ReofferSpread (bp)Yield (%)Pricing stepsNIP (bp)Book sizeRatingsBookrunnersDistribution US DOLLARS                           Jun 18 2018 Bayer US Finance II US$1.25bn Jun 25 2021 3.5

    SSAR bond deals priced in the week ending June 22

    IFR 2239 23 June to 29 June 2018

    Pricing dateIssuerAmountMaturityCoupon (%)ReofferSpread (bp)Yield (%)Pricing stepsNIP (bp)Book sizeRatingsBookrunnersDistribution US DOLLARS                           Jun 20 2018 Finnvera US$1bn Jun 27 2023 3

    Arctic miner resurfaces

    IFR 2239 23 June to 29 June 2018

    After a costly debut in the US junk bond market last year, Canadian miner Baffinland is looking to reduce its cost of borrowing with a new bond deal.

      More from Bonds

      Loans

      Disney characters Mickey Mouse and Minnie Mouse pose in front of the Castle

      Banks profit as battle for Fox escalates

      IFR 2239 23 June to 29 June 2018 By

      Banks arranging nearly US$36bn of loans to support Walt Disney’s sweetened US$71.3bn bid to buy Twenty-First Century Fox’s media assets stand to pocket around US$200m in fees, boosting profits from an increasingly hot market for acquisitions.

      Spain: Masmovil nets €831m refi

      IFR 2239 23 June to 29 June 2018

      Telecoms operator Masmovil has completed the second phase of the refinancing of its senior syndicated loan for €831m.

      UK: HSS agrees £245m refi

      IFR 2239 23 June to 29 June 2018

      Tool hire firm HSS Hire Service Group has agreed a £245m loan refinancing, including a £220m term loan from HPS Investment Partners.

      Netherlands: Interxion signs €200m RCF

      IFR 2239 23 June to 29 June 2018

      Data centre operator Interxion has signed a €200m unsecured revolving credit facility after the company issued €1bn of seven-year bonds.

      Mexico: Industrial Saltillo bags refi

      IFR 2239 23 June to 29 June 2018

      Manufacturing and distributing company Grupo Industrial Saltillo has signed a US$300m syndicated loan to refinance loans backing acquisitions in Europe and Asia in 2015 and 2016.

      Mexico: Cement maker nets US$400m refi

      IFR 2239 23 June to 29 June 2018

      Grupo Cementos de Chihuahua has agreed a US$400m five-year loan, replacing bank debt on improved terms and conditions.

      Ghana: Cocobod closes senior

      IFR 2239 23 June to 29 June 2018

      Ghana Cocoa Board, or Cocobod, has closed senior syndication of its pre-export financing for its 2018/19 cocoa crop.

      South Africa: Investec seeks US$300m loan

      IFR 2239 23 June to 29 June 2018

      Investec Bank launched a US$300m three-year term loan via coordinating banks Bank of America Merrill Lynch, MUFG and Mizuho.

      More from Loans

      Equities

      A man walks down the stairs of a petrol storage tank at an oil refinery in Melbourne.

      Viva bids to fuel Aussie IPOs

      IFR 2239 23 June to 29 June 2018

      Global energy trader Vitol has kicked off Australia’s largest IPO in four years with its eagerly-awaited float of fuel refinery and retailing unit Viva Energy.

      China: Xinyi Energy plans US$300m IPO

      IFR 2239 23 June to 29 June 2018

      Xinyi Energy plans to raise about US$300m from a Hong Kong IPO, according to people close to the deal.

      China: Qeeka Home launches IPO

      IFR 2239 23 June to 29 June 2018

      Qeeka Home, a Chinese provider of an online interior design and construction platform, has started bookbuilding for a Hong Kong IPO of up to HK$2.18bn (US$278m).

      China: I&R opens books on IPO

      IFR 2239 23 June to 29 June 2018

      China Isotope & Radiation has started bookbuilding for a Hong Kong IPO of up to HK$1.94bn (US$247m).

      China: WuXi Biologics stake trimmed

      IFR 2239 23 June to 29 June 2018

      Biologics Holdings, the controlling shareholder of China’s WuXi Biologics, has cashed in part of its stake for HK$3.96bn (US$505m) in an overnight block trade.

      China: Jiangxi Bank completes IPO

      IFR 2239 23 June to 29 June 2018

      Jiangxi Bank has raised HK$7.48bn (US$953m) from a Hong Kong IPO after pricing the deal slightly above the mid-point of the indicative price range.

      China: Tongcheng-Elong files for IPO

      IFR 2239 23 June to 29 June 2018

      Chinese online travel service provider Tongcheng-Elong has filed for a Hong Kong IPO with CMB International, JP Morgan and Morgan Stanley as joint sponsors.

      China: Ganfeng Lithium to pre-market IPO

      IFR 2239 23 June to 29 June 2018

      Ganfeng Lithium is set to start pre-marketing a Hong Kong IPO of about US$1bn early this week, according to people close to the deal.

      More from Equities

      TDC

      LBOs concede on docs and pricing ahead of chunky pipeline

      22 June 2018 By

      TDC and Cirsa Gaming made hefty concessions to investors for their respective buyout deals this week ahead of other chunky LBOs, which could worry bankers waiting to launch them.

      IFR SNAPSHOT - IG set to see busiest June ever

      22 June 2018 By

      The US high-grade primary market is on course to see it busiest June ever, with just US$25m more in supply required to hit that milestone.

      Chilean national flag

      Chile readies roadshow for Euroclearable local currency bond

      22 June 2018 By

      Chile is readying roadshows to market Euroclearable local currency bonds among foreign investors next week, a source told IFR on Friday.

      citi jpm HY lev loan

      MOVES-Citi hires Nichols for cash equities sales

      22 June 2018

      Citigroup has hired Juliette Nichols as a director for its cash equities specialist sales team, covering financials in London, according to an internal memo seen by IFR.

      novo banco espirito santo bes

      Novo Banco set for crucial market test

      22 June 2018 By ,

      Novo Banco is hoping to sell a €400m Tier 2 bond in what would be the biggest capital markets test for the beleaguered Portuguese lender since a rescue package agreed in 2017.

      Sharp Corp logo

      Sharp to raise up to ¥226bn from share sale

      22 June 2018

      Sharp is planning to sell up to 86.25m shares in a global follow-on offering which could raise up to ¥226bn (US$2.1bn) based on today’s closing price of ¥2,625.

      Mongolia's high plains herders warily eye coal truck road.

      Mongolia considers IPO for giant coal mine

      22 June 2018

      (Reuters) The Mongolian government on Thursday submitted plans to parliament to list a chunk of the state-owned company that holds the giant Tavan Tolgoi coal mine.

      Colombia oil refinery

      Frontera reopens LatAm primaries by default

      21 June 2018 By

      Frontera Energy dared to tread where few LatAm issuers would go on Wednesday, essentially reopening the LatAm primaries by default with a US$350m junk five-year.

      Blackstone Group office

      Blackstone sweetens terms on Cirsa buyout bond

      21 June 2018 By

      Private equity firm Blackstone has sweetened terms on a €1.56bn-equivalent US dollar and euro high-yield bond to help finance its buyout of Spanish gaming company Cirsa following pushback from investors.

      Chips and semiconductors in a mobile phone

      Soitec secures €150m through zero-coupon CB

      21 June 2018 By

      Soitec raised €150m today through a five-year convertible bond, but it is one of too few companies that are visiting the EMEA market this year.

      A slot machine

      After TDC, investors push back on Cirsa

      21 June 2018 By

      Investors are pushing back on Cirsa Gaming’s terms, a day after Danish telecoms company TDC had to concede on both documentation and pricing.

      The entrance of Portuguese bank headquarters Caixa Geral de Depositos is seen in Lisbon

      CGD Tier 2 prevails despite fears of further weakness

      21 June 2018 By

      Caixa Geral de Depositos navigated a fickle market to sell a €500m Tier 2 bond, a vital component in its recapitalisation plan. But the response provided further evidence of growing investor vigilance, particularly around Southern European paper.

      Italian flag waves in front of The "Altare della Patria"

      High-yield sees Italian exposure

      21 June 2018 By

      International Game Technology priced its €500m non-callable six-year senior secured note at 3.50% on Thursday.

      Polish flag

      EPP failed trade highlights EM's woes

      21 June 2018 By

      Polish real estate company EPP’s hopes for a successful debut outing fell apart on Monday when it was forced to pull the trade as the gloom in EM deepened on the back of headlines about a possible trade war.

      Royal Bank of Canada (RBC) logo

      RBC smashes back into covereds

      21 June 2018 By

      Royal Bank of Canada has returned with style to the covered sector, pricing a €1.5bn five-year on a €2.2bn book after tightening talk by 4bp - the biggest pricing move for a euro covered deal of this size this year.

      A Lithium-Ion Battery of German manufacturer Akasol

      Akasol covered with a week to go

      21 June 2018

      Books are covered on the €107.2m-€109.7m Frankfurt IPO of lithium-ion battery maker Akasol. Investors were informed around Wednesday’s close that books had been covered on the full deal size including greenshoe.

      All Latest news

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      IFR/Save the Children

      A tale of two tragedies

      A tale of two tragedies

      It is difficult to imagine that the already heartbreaking predicament of two peoples, the Ethiopians and the Rohingya, could get even worse. Yet the current weather is delivering more hardship to both.

      Special Reports

      IFR SSA 2018 SSA+Cover+2018
      Rising interest: Investors have long been bemoaning the fact that returns have been way lower than they would crave, especially in the rarefied realms of the public sector.

      IFR Review of the Year 2017 IFR+RoY+Cover+2017+Homepage
      IFR's review of 2017 looks at bank regulation, the latest developments in Green loans, bank hiring, standalone investment banks, Saudi reforms and more, including a visit to Save the Children projects part-funded by donations at the IFR Awards dinner.

      Also includes the IFR Awards 2017.

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

      Sticking to convictions

      IFR 2238 16 June to 22 June 2018

      EVENT RISK HAS a habit of making fools of forecasters and one of ING’s economists could be feeling the heat following a regime change in Spain.