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Tuesday, 26 March 2019

Bidding war

IFR 2276 23 March to 29 March 2019

Equity capital markets bankers in Europe are facing up to the worst first quarter in the EMEA region for years. Issuance has reached less than US$16bn, down 62% year-on-year and with no major deals scheduled to be priced in the final week of the quarter. Only the US$19.1bn raised in the first quarter of 2009 – as the financial world was still mired in crisis – comes close to being as bad.

Top News

An illuminated sign appears in a Lyft ride-hailing car

Lyft hails IPO investors for US$2.1bn

IFR 2276 23 March to 29 March 2019 By

Lyft is seeking a valuation of up to US$21.5bn in its IPO and whether or not it can convince the market that this is reasonable will shape the fate of other highly-valued private companies expected to test US equity markets this year.

Ice

Private CLOs take off as public market struggles

IFR 2276 23 March to 29 March 2019 By

Investors struggling to find the terms they want on public leveraged loan vehicles are increasingly turning to an old markets trick: going private.

Logo of the IFRS Foundation

'Badwill' is key to Deutsche-Commerz deal

IFR 2276 23 March to 29 March 2019 By

While politicians and regulators squabble about the merits and risks of a proposed tie-up between Deutsche Bank and Commerzbank, it might in fact be the auditors that have the biggest say on the financial viability of any deal.

Financial Industry Regulatory Authority sign

FINRA to banks: hand over your new-issue data

IFR 2276 23 March to 29 March 2019 By

The US Financial Industry Regulatory Authority is preparing to file a rule proposal with the Securities and Exchange Commission to require the collection and dissemination of reference data for new corporate bonds. The proposal could see FINRA itself act as a central depository for new-issue information.

Ghana

West Africans follow contrasting paths

IFR 2276 23 March to 29 March 2019 By

African minnow Benin took the difficult road for its bond market debut on Tuesday, as the little-known issuer fought for attention alongside an index-eligible US$3bn three-part trade from its bigger near-neighbour Ghana.

Schaeffler logo

Bond rally fuelled by 'bearish buying'

22 March 2019Updated: 25 March 2019 By

The European corporate bond market is in a state of cognitive dissonance. Thanks to a dovish ECB, average European investment-grade spreads rallied to their tightest levels of the year last week - at swaps plus 83bp according to the iBoxx euro non-financials index - while the primary market has seen yields get crushed and deals multiple times subscribed.

Tech board set for IPO landmark

China tech board set for IPO landmark

IFR 2276 23 March to 29 March 2019 By ,

The first batch of listings on Shanghai’s new tech board is set to include China’s first IPO from an unprofitable company.

A 'No Entry' sign stands in front of the headquarters of the European Central Bank in Frankfurt

Senior women remain a rarity in capital markets

IFR 2276 23 March to 29 March 2019 By

UK and international banks have signed up in droves to the UK government’s Women in Finance Charter, but despite a raft of measures to foster greater female leadership, gender parity is still a long way from becoming a reality within capital markets.

Deutsche Bank headquarters

Deutsche restarts bosses' bonuses, despite cost woes

IFR 2276 23 March to 29 March 2019 By

Deutsche Bank has brought back bonuses for bosses after meeting cost and job-cutting targets for 2018, risking the ire of German unions and investors as the bank mulls a merger with Commerzbank and continues to deliver paltry returns.

Total gas station

Auctions return to European ECM

22 March 2019 By

Auctions for shareholder sell-downs made a return to European equity capital markets on Tuesday in the form of a brace of accelerated bookbuilds. Though whether that is a welcome return is a matter for debate, as the larger of the two trades was not fully sold by the auction-winning banks.

The Air France-KLM company logo

Air France-KLM CB premium soars to 70%

IFR 2276 23 March to 29 March 2019 By

Air France-KLM issued the first convertible bonds from France in nine months and secured a staggering 70% premium in the process. Its €500m seven-year, put five, convertible bond issue was launched with a 57.5%–65% premium to its current share price. In combination with the above-range premium, the coupon was set at 0.125%, the bottom of 0.125%–0.5% guidance.

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People & Markets

UBS warns of bleak Q1

IFR 2276 23 March to 29 March 2019

UBS’s investment banking revenues have plunged this quarter, which the Swiss bank blamed on some of the toughest market conditions in years and prompted it to slow hiring and cut an extra US$300m in costs this year.

CLSA departures expose Citic rift

CLSA board exits expose Citic rift

IFR 2276 23 March to 29 March 2019

CLSA chief executive Jonathan Slone has quit only weeks after the Chinese-owned investment bank’s chairman Tang Zhenyi also stood down, raising questions about the ability of parent Citic Securities to build out a rival to global banks.

JPM hires in growing payments space

IFR 2276 23 March to 29 March 2019

JP Morgan has hired Shahrokh Moinian from Deutsche Bank to run wholesale payments in Europe, Middle East and Africa, as it named regional heads to run the business.

Nomura beefs up with structured finance hires

IFR 2276 23 March to 29 March 2019

Nomura has bolstered its structured finance and special situations group with three hires, part of a push the Japanese lender is making in financing complex debt deals in the EMEA region.

JPM dominant as Deutsche loses ground in EMEA

IFR 2276 23 March to 29 March 2019

JP Morgan was the leading investment bank in most product lines last year and ranked in the top three in all segments, analysis firm Coalition said, showing the US bank is reaping the rewards from scale and investment.

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    Bonds

    Aussie issuers target euros

    IFR 2276 23 March to 29 March 2019

    A pair of Australian companies sold well-received 10-year bonds in the euro market last week, underscoring the overwhelming advantages of offshore markets for long-dated issues.

    Wellington Airport extends curve

    IFR 2276 23 March to 29 March 2019

    Wellington International Airport, rated BBB+ by S&P, raised the NZ$100m (US$68m) it was seeking from an 11-year senior unsecured bond offer.

    RCE Marketing places ABS

    IFR 2276 23 March to 29 March 2019

    RCE Marketing (RCEM) has sold M$240m (US$60m) of Islamic asset-backed securities under a new M$2bn (US$498m) sukuk programme.

    Malaysia: Resorts World Las Vegas plans 10-year

    IFR 2276 23 March to 29 March 2019

    Resorts World Las Vegas, rated BBB+/A– (S&P/Fitch), has hired banks for a 10-year US dollar 144A/Reg S benchmark senior unsecured notes private offering.

    Brexit derails Barclays' yen plans

    IFR 2276 23 March to 29 March 2019

    Barclays, rated Baa3/BBB/A/A– (Moody’s/S&P/Fitch/R&I), decided not to sell yen-denominated bonds in the near future because of the prolonged uncertainty over the UK’s exit from the European Union and the approach of Japan’s fiscal year-end, according to two sources familiar with the deal.

      More from Bonds

      Loans

      Ice

      Private CLOs take off as public market struggles

      IFR 2276 23 March to 29 March 2019 By

      Investors struggling to find the terms they want on public leveraged loan vehicles are increasingly turning to an old markets trick: going private.

      Amcor's refi packs a punch

      IFR 2276 23 March to 29 March 2019 By , , Sophia Rodrigues

      Packaging company Amcor has launched a US$4.5bn refinancing to back its proposed merger with US-based Bemis, adding to a surge in event-driven financings in the country since the beginning of the year.

      India: Mahindra Finance looks offshore

      IFR 2276 23 March to 29 March 2019

      Mahindra and Mahindra Financial Services is planning to raise about US$500m from offshore bonds and loans in one or more tranches in the three to five-year segment, its chief financial officer has said.

      Hong Kong: Konew Capital launches US$150m deal

      IFR 2276 23 March to 29 March 2019

      Konew Capital International has launched a US$150m-equivalent three-year facility.

      Lenders unfazed by Shanghai Sinooil covenant breach

      Lenders unfazed by Shanghai Sinooil covenant breach

      IFR 2276 23 March to 29 March 2019 By

      Lenders on a US$400m three-year term loan for Shanghai Sinooil Energy Holding (Hongkong) are not pursuing any action despite a covenant breach a few months ago.

      China: Bestway cuts loan to US$89m

      IFR 2276 23 March to 29 March 2019

      Hong Kong-listed Bestway Global Holding has reduced its three-year term loan to US$88.888m from the target size of US$100m–$150m.

      China: Dianchi Water increases debut loan

      IFR 2276 23 March to 29 March 2019

      Kunming Dianchi Water Treatment has increased a three-year term loan to US$271m-equivalent from US$150m-equivalent.

      China: CIMC Financial seeks debut loan

      IFR 2276 23 March to 29 March 2019

      CIMC Financial Leasing (Hong Kong) has launched a debut US$180m three-year amortising term loan.

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      Equities

      Foreign support for India's first REIT

      Foreign support for India's first REIT

      IFR 2276 23 March to 29 March 2019

      India’s first real estate investment trust, Embassy Office Parks REIT, completed its five-year journey to the stock market last week thanks to the support of foreign investors, even as local institutions remained cool.

      More US REITs head to Singapore

      IFR 2276 23 March to 29 March 2019

      Receding concerns of US rate rises are encouraging more companies to explore Singapore listings for their real estate assets, but the path to IPO may not be easy given investors’ caution over lesser-known sponsors.

      Thailand: Kerry Express to hire banks

      IFR 2276 23 March to 29 March 2019

      Logistics company Kerry Express Thailand is set to hire Citigroup, Credit Suisse, Maybank and Siam Commercial Bank to work on a US$100m–$300m Stock Exchange of Thailand IPO, people with knowledge of the transaction have said.

      South Korea: Woori Bank exits Woori Financial

      IFR 2276 23 March to 29 March 2019

      Woori Bank has raised W253.8bn (US$229m) through a block sale of its stake in Woori Financial Group.

      South Korea: Hyundai AutoEver priced above range

      IFR 2276 23 March to 29 March 2019

      Hyundai AutoEver, an affiliate of Hyundai Motor Group, has raised W168.4bn (US$148.7m) from a KRX IPO after pricing the shares above the indicative range at W48,000 each.

      Malaysia: QSR starts pre-marketing IPO

      IFR 2276 23 March to 29 March 2019

      Food operator QSR Brands has started pre-marketing an IPO of up to US$500m, according to a term sheet.

      Indonesia: Lion Air eyes third-quarter IPO

      IFR 2276 23 March to 29 March 2019

      Lion Air is planning to launch a US$600m–$700m IPO by the third quarter, people with knowledge of the transaction have said.

      Indonesia: MAP Active pre-markets US$400m IPO

      IFR 2276 23 March to 29 March 2019

      Map Aktif Adiperkasa (MAP Active), a sports goods retailer backed by CVC Asia Pacific, has started pre-marketing a US$200m–$400m IPO, according to a term sheet.

      More from Equities

      BioGen bonds widen again after stock buyback plans

      25 March 2019 By

      Bonds of biotech company BioGen came under further pressure on Monday after the company said it would buy back US$5bn worth of shares.

      BAML slashes RMBS forecast after market slowdown

      25 March 2019 By

      Bank of America Merrill Lynch analysts have slashed their forecast for jumbo residential mortgage backed bond supply by more than half after a slow start to the year for issuance.

      Miroku Jyoho Service seeks ¥11bn CB

      Schibsted to spin off and list Adevinta in April

      25 March 2019

      Norwegian media group Schibsted is aiming to spin off and list its international online classified ads company Adevinta by April 10.

      VW bus

      Corporate bonds prove balm for nervous market

      25 March 2019 By

      Two credits sailed through an increasingly nervous market on Monday, with European growth concerns, a negative 10-year Bund yield and rocky Brexit negotiations only increasing demand for corporate bonds.

      Coventry Building Society

      Coventry BS puts new spin on AT1 refinancing

      25 March 2019 By

      Coventry Building Society is putting a fresh twist on the refinancing of Additional Tier 1 debt, launching a cash tender offer on its outstanding bonds in tandem with a mandate to raise new debt, an unprecedented move for the sector.

      LeasePlan logo

      LeasePlan drives holdco to high-yield

      25 March 2019 By

      LeasePlan started marketing a €1.35bn dual-tranche refinancing trade on Monday, the first holding company debt offered to the European high-yield market this year.

      Chinese and Japanese flags

      Italy taps yen market in first foreign placement since 2016

      25 March 2019 By

      The Republic of Italy sold the first foreign currency bond off its MTN programme in over two years last Friday, a ¥25bn (US$227m) four-year trade that potentially paves the way for more issuance in foreign currencies.

      derivatives regulation disaster

      Traders scramble for sterling protection amid Brexit uncertainty

      25 March 2019 By

      Demand for protection against a steep slide in sterling has reached its most extreme level since the aftermath of the Brexit vote nearly three years ago, as concerns grow among the financial and business community over the outcome of the UK’s efforts to leave the European Union.

      Preem gas station

      Preem closer to refinancing PIK notes

      25 March 2019 By

      Swedish fuel company Preem said on Monday that it is closer to refinancing its outstanding PIK notes, which become callable on May 15.

      Logo of French retailer Auchan

      Two French retailers slip down Triple B bracket

      25 March 2019 By

      Two of France’s largest supermarket groups have had their ratings chopped by S&P, the latest sign that European retailers are struggling with lower demand and increased competition.

      Montepio

      Banks size up market as tone sours

      25 March 2019 By ,

      There is no shortage of financial mandates in the pipeline, but it remains to be seen whether the softening in market conditions thwarts higher beta issuance.

      IFR SNAPSHOT-IG primary to see at least three deals

      25 March 2019 By

      Monday starts with three deals in the IG primary, as markets digest the latest economic developments, including recession fears, and the end of the Mueller probe in the US.

      The Jordanian flag flutters in front of the Al Khazneh (Treasury) in the ancient city of Petra

      MOVES-Citi promotes Antonios to head UAE, Levant, Iraq

      25 March 2019 By

      Citigroup has promoted Elissar Farah Antonios, head of its business in United Arab Emirates, to also lead its operations in the Levant area and Iraq.

      A "welcome to Amsterdam" sign

      Naspers to list bundled internet stock in Amsterdam in H2

      25 March 2019 By

      South African media group Naspers is continuing its strategy for a reweighting on the Johannesburg Stock Exchange through a spin-off listing of its international internet assets on Euronext Amsterdam.

      Rothschild & Co logo

      MOVES-Rothschild reshuffles South Africa team

      25 March 2019 By

      Rothschild & Co has promoted Paul Bondi and Giles Douglas to co-head its South Africa business while Martin Kingston, chief executive of the division, will become executive chairman.

      MOVES-Muzinich hires GAM's Kubli for new structured credit role

      25 March 2019 By

      Muzinich & Co has hired ABS investor Laurence Kubli from GAM Investments. She joins in a newly created role as structured credit specialist, to create Muzinich’s first structured credit strategies.

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      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.

      Gone for a song

      IFR 2276 23 March to 29 March 2019

      BANKS HAVE SPENT millions since the financial crisis trying to regain the trust of customers through expensive re-branding exercises, but few have gone as far as HSBC and commissioned a company song.