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Sunday, 16 June 2019

Smart move?

IFR 2288 15 June to 21 June 2019

Italian politics might be causing nervousness in the corridors of power in Brussels but the bond market is considerably more sanguine.

Top News

Italy

Italy comes out fighting with 20-year drive-by

IFR 2288 15 June to 21 June 2019 By

The Republic of Italy made an unexpected return to the syndicated bond market last week, swiftly raising a €6bn 20-year in a deal that showed that the spat between the European Commission and the country over its budget has done little to derail market access.

A South Korean flag

Asian sovereigns pounce on rate cut hopes

IFR 2288 15 June to 21 June 2019 By

South Korea and Indonesia charged into the international bond markets last week, raising a combined US$3.1bn as expectations of a US rate cut helped stir demand for emerging-market assets.

The logo of Piraeus Bank is seen outside a branch in Athens

Piraeus gears up for first Greek sub-debt sale in over a decade

IFR 2288 15 June to 21 June 2019 By

Piraeus Bank will attempt to sell the first bank capital trade from a Greek bank in over a decade this week as it looks to turn the page on its chequered bond market past and leverage shareholder support to bolster its balance sheet.

A piggy bank is seen among rubbles that burned during the Station Fire in the Tujunga area of LA

Rallye debt losses burn JP Morgan and HSBC

IFR 2288 15 June to 21 June 2019 By

The pick-up in European corporate defaults continues to weigh on bank trading desks this quarter, with JP Morgan and HSBC on the hook for sizeable losses after French holding company Rallye entered bankruptcy protection last month.

US Congress takes aim at China IPOs

US Congress takes aim at China IPOs

IFR 2288 15 June to 21 June 2019 By

The US-China trade war is spilling over into the capital markets after US legislators tabled measures that could block Chinese companies from going public in the US and force the delisting of a host of well-known companies including Alibaba, JD.com and PetroChina.

A passenger walks past a Southern railway train at Clapham Junction rail station in south London

High-speed coverage for Trainline listing

IFR 2288 15 June to 21 June 2019 By

Trainline’s £602m-£678m London IPO was covered after around two hours on Wednesday and by Thursday afternoon the deal was covered at the top of the 318p-360p price range. The rapid coverage and lack of price sensitivity is a boost for a European IPO market that has struggled to build any momentum in 2019.

Pile of one hundred dollar notes

US tax changes to help American companies tap cheap money

IFR 2288 15 June to 21 June 2019 By

Companies that fund their businesses with loans and bonds are set to benefit from changes to the US tax code that will allow them to raise cheap new financing by guaranteeing the debt by pledging foreign assets, although the move could make life more complicated for existing creditors.

Volodymyr Zelenskiy - Ukraine

Ukraine's euro return is no joke

IFR 2288 15 June to 21 June 2019 By

Ukraine found good support for its first euro offering in nearly 15 years on Thursday as investors pin their hopes on newly elected president Volodymyr Zelenskiy’s ability to push ahead with critical reforms.

Maputo's skyline

Investors come out whole from Mozambique debacle

IFR 2288 15 June to 21 June 2019 By

The bonds on which Mozambique defaulted in early 2017 are now trading back at par after the beleaguered African sovereign earlier this month agreed a generous “restructuring” with bondholders controlling at least 60% of the notes by value. The bonds had traded as low as 53 cents on the dollar after the default.

Norinchukin Bank logo

CLO spreads widen as Japanese pull back

IFR 2288 15 June to 21 June 2019 By

Slowing investment by Japanese financial institutions has pushed pricing on the most senior tranches of European CLO funds to its widest point in nearly three years as investors such as Norinchukin Bank scale back multibillion-dollar investments.

Revellers battle with tomatoes during the annual Tomatina festival in Bunol near Valencia

Investors mob CrowdStrike IPO

IFR 2288 15 June to 21 June 2019 By

CrowdStrike, a fast-growing cybersecurity company led by former McAfee executives, produced one of the hottest US IPOs in recent memory when it raised US$612m last week, but the outcome also underscored the frothy current state of the US new issue market.

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People & Markets

China calms nerves over banks

IFR 2288 15 June to 21 June 2019

China last week moved to ease concerns over the health of smaller lenders with an unprecedented credit guarantee, amid warnings that low-tier banks may still find it hard to access funding after the state takeover of troubled Baoshang Bank.

'Special bonds' set to power China projects

IFR 2288 15 June to 21 June 2019

China has allowed some of the proceeds from “special bonds” used to fund local government infrastructure projects to count as capital, in a move that could inject trillions of renminbi into the country’s slowing economy.

RBI rewrites restructuring rules

IFR 2288 15 June to 21 June 2019

The Reserve Bank of India has released a new framework for the resolution of stressed assets that gives more flexibility to lenders to resolve bad debt without making it mandatory for them to refer stressed accounts to bankruptcy courts.

Citi suspended as JGB primary dealer

IFR 2288 15 June to 21 June 2019

Citigroup has been suspended from underwriting certain types of Japanese government bond auctions after one of its employees was found to have rigged futures prices.

Societe Generale names Orsini to lead global DCM

IFR 2288 15 June to 21 June 2019

Societe Generale has made a number of promotions in its debt capital markets team, with Felix Orsini appointed global head of debt capital markets.

    More from People & Markets

    Bonds

    New rule, low rates restrain BPCE

    IFR 2288 15 June to 21 June 2019

    France’s biggest yen bond issuer returned to the Japanese market last week with a modestly sized deal that again underlined investors’ preference for high-yielding paper.

    ANZ flies high with rare RMBS

    IFR 2288 15 June to 21 June 2019

    Australia and New Zealand Banking Group benefited from scarcity value for last Friday’s upsized A$1.5bn (US$1.04bn) Kingfisher Trust 2019-1 capital funding prime RMBS, only its second mortgage-backed offering since 2004.

    GRCB dodges Baoshang's shadow

    IFR 2288 15 June to 21 June 2019

    Guangzhou Rural Commercial Bank quashed fears of a dip in confidence in Chinese bank capital last week with a tightly priced US$1.43bn debut Additional Tier 1 offering.

    Avanti sets RMBS guidance

    IFR 2288 15 June to 21 June 2019

    Consumer lender Avanti Finance has released guidance for the no-grow NZ$200m prime and non-conforming Avanti RMBS 2019-1.

    Premier Auto on ABS route

    IFR 2288 15 June to 21 June 2019

    Premier Auto Assets plans to sell up to M$110m (US$27m) of asset-backed securities by the end of this month, its first under a M$1bn MTN programme.

      More from Bonds

      Loans

      Marina Bay drums up interest

      IFR 2288 15 June to 21 June 2019 By ,

      Singaporean casino operator Marina Bay Sands has returned to the loan market for a financing of up to S$8bn (US$5.86bn), in the biggest test so far of lenders’ appetite for the gaming sector in the Lion City.

      Pile of one hundred dollar notes

      US tax changes to help American companies tap cheap money

      IFR 2288 15 June to 21 June 2019 By

      Companies that fund their businesses with loans and bonds are set to benefit from changes to the US tax code that will allow them to raise cheap new financing by guaranteeing the debt by pledging foreign assets, although the move could make life more complicated for existing creditors.

      Hexion markets refinancing

      IFR 2288 15 June to 21 June 2019

      Chemical firm Hexion, which filed for bankruptcy protection in April, is in the market with a US$900m-equivalent financing.

      Nexstar shops US$3.7bn loan

      IFR 2288 15 June to 21 June 2019

      Nexstar Broadcasting has launched a two-part US$3.7bn term loan package to partially fund its purchase of Tribune Media, an acquisition the companies agreed in December.

      Hong Kong: NWS Holdings self-arranges club

      IFR 2288 15 June to 21 June 2019

      Hong Kong-listed NWS Holdings, the infrastructure and service flagship of New World Development, is self-arranging a HK$2.5bn five-year club loan.

      Hong Kong: Kingboard Holdings returns

      IFR 2288 15 June to 21 June 2019

      Hong Kong-listed Kingboard Holdings, formerly known as Kingboard Chemical Holdings, has returned to the market with a HK$5bn (US$638m) four-year dual-tranche facility.

      Peru: Bridge loan for hydro asset

      IFR 2288 15 June to 21 June 2019

      A consortium of investors, led by China Three Gorges, has signed an US$850m bridge debt package to fund its purchase of the Chaglla hydroelectric power plant in Peru.

      PE-backed buyouts rebound in Australia

      IFR 2288 15 June to 21 June 2019 By

      Private equity-backed buyouts in Australia rebounded in 2018 for the first time in three years with 75 transactions totalling A$12.5bn (US$8.63bn), a 89% increase from 2017, according to a report from the Australian Investment Council and financial data provider Preqin.

      More from Loans

      Equities

      China: China Merchants mulls rare REIT

      IFR 2288 15 June to 21 June 2019

      Hong Kong could see its first REIT IPO in more than five years as China Merchants Shekou Industrial Zone considers listing some of its assets as early as the end of this year to raise at least US$500m.

      India: SBI keeps share sale on hold

      IFR 2288 15 June to 21 June 2019

      Major state-owned Indian banks are holding off share sales while they wait for credit growth to pick up and their earnings to improve.

      China: Scholar Education covers books

      IFR 2288 15 June to 21 June 2019

      The books for Scholar Education Group’s Hong Kong IPO of up to HK$585m (US$75m) are covered, according to people close to the deal.

      China: Zhongliang to pre-market HK IPO

      IFR 2288 15 June to 21 June 2019

      Property developer Zhongliang Holdings Group plans to start pre-marketing this week for a Hong Kong IPO of around US$500m–$600m, according to people close to the deal.

      China: JH Education prices IPO at bottom

      IFR 2288 15 June to 21 June 2019

      JH Education Technology, a higher education provider, has priced its Hong Kong IPO at the bottom of the indicative range to raise HK$600m (US$76.7m).

      Volvo

      Geely taps euros for Volvo EB

      IFR 2288 15 June to 21 June 2019

      Equity-linked investors were offered something a little different on Wednesday as Chinese automotive group Geely issued euro bonds exchangeable into Swedish truck maker Volvo.

      Australia: Evolution Mining seals delta placement

      IFR 2288 15 June to 21 June 2019

      Citigroup and JP Morgan have raised A$191m (US$132m) from a delta placement in ASX-listed Evolution Mining.

      Australia: Afterpay Touch completes placement

      IFR 2288 15 June to 21 June 2019

      ASX-listed Afterpay Touch Group has raised A$317.2m (US$220m) from an underwritten placement.

      More from Equities

      Peru to focus on local market through 2019: debt head

      14 June 2019 By

      The government of Peru does not anticipate additional dollar bond sales this year, but will look to increase local currency issuance, the country's debt head said on Friday.

      Broadcom leads credit widening for chip makers

      14 June 2019 By

      Broadcom bonds were moving wider in the secondary Friday morning after the US chip maker underperformed in an earnings report largely due to the ongoing US-China trade war.

      SNAPSHOT-IG takes breather after active week

      14 June 2019 By

      The high-grade primaries were taking a breather on Friday as markets switched to risk-off mode amid concerns over Chinese growth and the latest US-Iran confrontation came to the fore.

      Entertainment One prices rare high-yield sterling bond

      14 June 2019 By

      Entertainment One priced a £425m 7NC3 senior secured note at 4.625% on Friday, giving a boost to the unloved sterling high-yield market.

      CMBS market softens as buyers wait for higher rates

      14 June 2019 By

      Lower rates are weighing on the conduit CMBS primary market, with recent deals seeing softer demand and wider spreads.

      MOVES-Greve joins advisory boutique

      14 June 2019 By

      Leo-Hendrik Greve, former head of global capital markets at ING, has joined Bowline Capital Partners as a partner.

      MOVES-EM trader Subramanian departs Nomura for Deutsche

      14 June 2019 By

      Emerging markets credit trader Arun Subramanian has left Nomura after 10 years and is heading to Deutsche Bank, according to sources.

      MOVES-BNP Paribas's debt banker Martin Egan to retire - internal memo

      14 June 2019 By

      Martin Egan, BNP Paribas’s vice-chair of the global client board, is to retire and leave the French bank in August according to an internal memo seen by IFR.

      MOVES-Societe Generale names Orsini to lead global DCM

      14 June 2019 By

      Societe Generale has made a number of promotions in its debt capital markets team, with Felix Orsini appointed global head of debt capital markets.

      Provention Bio shelves stock sale

      13 June 2019 By

      High flying cast-off drug developer Provention Bio pulled the plug on a planned US$75m stock offering late Wednesday rather than fund development of a promising diabetes drug at a discounted valuation.

      Investors hungry for Chewy IPO

      13 June 2019 By

      PetSmart-backed pet e-tailer Chewy is on track this evening to price its US$873.6m NYSE IPO at the top or above the upwardly revised US$19-$21 marketing range.

      Books on Peru bond hit over US$10bn equivalent: lead

      13 June 2019 By

      Books on Peru’s dual-currency bond swelled to over US$10bn equivalent on Thursday as the sovereign readied pricing on the deal, according to a lead bank.

      sweden US$ bond

      Nordic Capital sheds 13.6% of Munters

      13 June 2019

      Nordic Capital sold 13.6% of Swedish climate control product maker Munters on Wednesday evening, raising SKr1.1bn (US$115.9m).

      Cambium launches US$87m Nasdaq IPO

      13 June 2019 By

      Cambium Networks, a next-generation wireless infrastructure provider, plans to price an up to US$87m Nasdaq IPO on June 25.

      stethoscope, healthcare, medical, doctor, health insurance

      Doc Generici comes tight in buyout revival

      13 June 2019 By

      Italian pharmaceutical Doc Generici priced the floating-rate note funding its takeover by ICG, providing a welcome return of buyout paper to the European high-yield market.

      Magnifying glass

      Rare corporates gain attention despite heavy supply

      13 June 2019 By

      Less-frequent issuers bringing smaller deals reaped their reward in the corporate bond market on Thursday, attracting plenty of attention no signs of investor indigestion.

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      Special Reports and Roundtables

      IFR SSA Special Report 2019 IFR+SSA+Special+Report+2019
      Best laid plans: Few would be so presumptuous as to lay claim to the ability to plot the progress of the global economy with unerring accuracy on a constant basis. But there are still many that make the prediction game their stock in trade – with varying degrees of success.

      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.

      ​Hells Wells

      IFR 2288 15 June to 21 June 2019

      WELLS FARGO IS still looking for a CEO, a state of affairs that has brought criticism from Jamie Dimon. “It’s not responsible for a company – this is my own view – to have a CEO leave with no plan in place,” Dimon told a conference last month.