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Friday, 23 June 2017

Lendmark subprime consumer loan ABS sees staggering demand

22 June 2017 By

Lendmark Financial Services was inundated with demand for the riskiest parts of its US$350m consumer loan ABS bond this week - its biggest deal yet following its debut last year.

UPDATE 1-CFE brings Mexico's first Formosa bond

22 June 2017 By

Comision Federal de Electricidad (CFE) priced a US$750m 30-year bond in Taiwan’s Formosa market, marking the first time that a Mexican issuer has tapped the asset class.

MOVES-Greenhill hires Mack from Barclays for restructuring

22 June 2017 By Philip Scipio

Greenhill & Co is beefing up its restructuring group with the addition of George Mack, formerly Barclays’ head of the global restructuring.

STS implementation pushed back six months

22 June 2017 By Ana Baric

The expected implementation date for the Simple, Transparent and Standardised (STS) Securitisation framework has been pushed back six months to January 2019, according to market sources.

A woman passes a branch of the Nationwide Building Society in London

Nationwide lands 15-year after February's false start

22 June 2017 By

Nationwide Building Society revived a 15-year covered bond that fell flat in February, paying a minimal new issue premium after wiping 10bp off what some deemed an overly generous starting point.

XL Group launches euro sub to wrap up tender

22 June 2017 By

XL Group is shaking the European insurance sub sector awake with an inaugural euro issue.

A Charter Communications van

Charter pulls bond in tug of war with investors

22 June 2017 By

Charter Communications pulled a US$1.5bn junk-bond sale late on Wednesday after failing to agree on yield with investors, as the slide in oil prices kept markets under pressure.

US snapshot: Charter can't hook up cable to buyside

22 June 2017 By Marc Carnegie

Charter Communications pulled its deal last night, as a junk bond starting with a 4.75% handle proved to be a touch too optimistic - even for yield-starved investors.

Evergrande Real Estate Group logo

China Evergrande new issue sinks six points

22 June 2017 By Kit Yin Boey, ,

China Evergrande’s bonds have tumbled nearly six points as the new issues fell victim to rumours swirling in the Chinese property market and complaints of over-allocation.

Laundry hangs from a houseboat at the Prinsengracht canal in Amsterdam

Dutch drought quenched by two prime RMBS

22 June 2017 By Ana Baric

The Dutch prime RMBS drought has officially ended with the emergence of Cartesian 2 on Thursday morning, while price guidance is out on STORM 2017-II.

Federal-Mogul back in just three months

22 June 2017 By Yoruk Bahceli

Reverse Yankee Federal-Mogul is back in the market just three months after its debut euro issue, with a €300m 7NC3 senior secured deal.   

BP/Reuters

BP shrugs off oil slump

22 June 2017 By Robert Hogg

BP Capital Markets raised €1.5bn across two tranches on Wednesday against a backdrop of falling oil prices, although unlike trades for CTE and BT, investor demand congregated around the shorter of the two bonds.

Investors clamber aboard Ferrovie dello Stato

22 June 2017 By Robert Hogg

Ferrovie dello Stato (-/BBB-/BBB) plumped for a single line through the middle of a contemplated maturity range, finding solid demand for an eight-year euro benchmark bond.

Nigeria

Nigeria's Diaspora debut struggles in secondary

22 June 2017 By

Nigeria’s Diaspora bond tumbled on the break as a combination of falling oil prices, sub-benchmark size and new format sent investors scurrying.

Anthony Peters columnist format

Oil be damned

22 June 2017 By

The downward pressure on the oil price continues unabated with WTI trading at US$42.50 and Brent, now also formally in a bear market, at US$44.80 per barrel. 

CICC, Goldman to lead US$10bn China Tower IPO

22 June 2017 By

China Tower Corp has mandated CICC and Goldman Sachs to arrange a Hong Kong IPO that could raise as much up to US$10bn, according to sources close to the deal.

All Latest news

Sleight of hand

IFR 2188 17 June to 23 June 2017

What is a sukuk? After Dana Gas claimed last week that its outstanding Islamic bonds are no longer lawful, this is not merely a philosophical question but a highly charged issue that could destroy the sukuk market.

Top News

The company logo of Hong Kong Exchanges & Clearing Ltd (HKEx) is displayed outside its exhibition hall in Hong Kong.

Morgan Stanley offers to sponsor China Tower IPO for free

IFR 2188 17 June to 23 June 2017 By

The scramble for lead roles on a US$10bn Hong Kong listing from China’s telecoms sector is turning the spotlight on fees in the city’s ultra-competitive IPO market.

AIB

What price DTAs? Investors question AIB's valuation

IFR 2188 17 June to 23 June 2017 By

The Irish government’s attempt to sell shares in bailed out Allied Irish Banks is being hampered by an argument over the inclusion of deferred tax assets - where past losses can offset future tax liabilities - in its valuation.

Dana Gas

Dana Gas puts sukuk market at risk

IFR 2188 17 June to 23 June 2017 By

The future of the sukuk market was thrown into doubt last week after Dana Gas claimed its US$700m of outstanding Islamic bonds are no longer sharia-compliant and are therefore “unlawful”.

A group who identified themselves as China-U.S. Enterprise wait to view the motorcade of Chinese President Xi Jinping before his meeting with US President Donald Trump at Palm Beach International Airport in West Palm Beach, Florida.

China springs sovereign bond surprise

IFR 2188 17 June to 23 June 2017 By Ina Zhou, Carol Chan

The People’s Republic of China sent market participants into a guessing game last week over the motives behind its plan to sell US dollar bonds overseas for the first time in 13 years.

Banco Popular

Banco Popular tests revised CDS terms

IFR 2188 17 June to 23 June 2017 By

Credit default swaps referencing Banco Popular subordinated debt are set to trigger following the bank’s resolution, helping to restore confidence in an updated set of CDS definitions that were intended to improve protection in the event of government-led restructurings.

The national flag and emblem of Belarus

Belarus faces uphill battle in comeback

IFR 2188 17 June to 23 June 2017 By Robert Hogg

In a sign of just how frothy markets are getting Belarus announced a comeback mandate last week, which will test the resolve of investors as they weigh up the opportunity to get yield against the reputational risks involved with such a deal.

HY bond loan numericable

Drahi maintains momentum with US IPO

IFR 2188 17 June to 23 June 2017 By

French/Israeli cable mogul Patrick Drahi is pushing ahead with the US$1.4bn NYSE IPO of Altice USA with the ruthless efficiency for which he has become famous.

Whole Foods sign

Amazon's Whole Foods takeover makes retail see red

IFR 2188 17 June to 23 June 2017 By

Amazon’s shock decision to buy upscale grocery chain Whole Foods delivered another dose of pain to US retail, which was already one of the most problematic sectors of the year so far.

Chris Giancarlo

Euro-clearing proposal threatens swaps liquidity

IFR 2188 17 June to 23 June 2017 By

The US$483trn global over-the-counter derivatives market could be set to splinter along regional lines, sapping liquidity and raising costs for end-users if Europe follows through on new proposals that could force euro-denominated swaps clearing to locate within the bloc.

The Colonial Zone in Santo Domingo

Dominican Republic's tale of the unexpected

IFR 2188 17 June to 23 June 2017 By

The Dominican Republic turned heads in the Latin America bond markets last week by mandating a trio of underwriters not typically seen leading public sovereign deals from the region.

IFR Magazine Top News in Full (subscription required)

People & Markets

Mayo returns to bank analysis with Wells Fargo

IFR 2188 17 June to 23 June 2017

Mike Mayo, a prominent bank analyst who became unemployed in February when his brokerage shut down, has a new job at Wells Fargo.

Rothschild revenues up 13% in Q4

IFR 2188 17 June to 23 June 2017

Rothschild reported a 13% rise in revenues to €487.2m in its latest quarter thanks to a strong performance from its asset management business, after a slowdown in growth at its global advisory arm.

StanChart brings in senior talent for US push

IFR 2188 17 June to 23 June 2017

Standard Chartered aims to expand its US presence with a local hiring push and by bolstering its team in the country with senior staff from its main regions of Asia, the Middle East and Africa, its top bankers said.

HSBC hires Ritchie to co-head global banking in UK

IFR 2188 17 June to 23 June 2017

HSBC has hired former Goldman Sachs banker Rob Ritchie to co-head its global banking business in the UK, a business the bank is attempting to expand.

Azerbaijan revises bank restructuring terms

IFR 2188 17 June to 23 June 2017

The International Bank of Azerbaijan has revised the terms of its proposed restructuring of US$3.3bn of its debts after concluding talks with an ad hoc group of creditors represented by law firm Clifford Chance.

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    Bonds

    Aroundtown extends into dollar market

    IFR 2188 17 June to 23 June 2017

    Aroundtown last week sold its ninth public trade and first in US dollars, having emerged from nowhere two years ago and quickly capitalised on Europe’s bull market and gung-ho investors.

    Euro belly takes centre stage

    IFR 2188 17 June to 23 June 2017

    The intermediate part of the euro curve dominated SSA primary activity, with a strong start to the week on the back of a bond rally.

    Lloyds hits FRN bid for first new euro senior sale

    IFR 2188 17 June to 23 June 2017

    Lloyds picked the floating format for its first euro holdco bond in the primary market, underlying the growing popularity of the product among financial issuers.

    Deutsche PBB readies first public Tier 2

    IFR 2188 17 June to 23 June 2017

    Deutsche Pfandbriefbank is readying an inaugural public Tier 2 as it starts building a curve in the product and replaces obsolete capital instruments.

    Green Bond Principles expand to Social

    IFR 2188 17 June to 23 June 2017

    New Social Bond Principles were released at ICMA’s third Green Bond Principles (GBP) annual general meeting in Paris last Wednesday, a framework that should help bring new issuers and asset classes to SRI investors.

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      Loans

      Pakistan hits market for six

      IFR 2188 17 June to 23 June 2017 By

      The Islamic Republic of Pakistan had an exceptional week in the loan markets, as well as in sports, notching up successes with a US$650m borrowing along with victories in a major international cricketing tournament.

      CHINA: China Orient doubles loan

      IFR 2188 17 June to 23 June 2017

      China Orient Asset Management (International) Holding has doubled the size of its latest three-year loan to US$600m on commitments from 18 banks in general syndication.

      CHINA: BeijingProp back for more

      IFR 2188 17 June to 23 June 2017

      Beijing Properties (Holdings) is returning to the market for a US$150m three-year loan after sealing a HK$750m (US$97m) project financing last October.

      CHINA: Haier clubs US$300m bullet

      IFR 2188 17 June to 23 June 2017

      Haier International clubbed a US$300m three-year bullet loan with two banks before signing it earlier this month.

      CHINA: GCL-Poly seeks US$200m loan

      IFR 2188 17 June to 23 June 2017

      GCL-Poly Energy Holdings, one of the world’s largest solar photovoltaic companies, has launched a US$200m three-year loan.

      AUSTRALIA: Endeavour Energy funds agreed

      IFR 2188 17 June to 23 June 2017

      A Macquarie Group-led consortium has signed with 18 lenders a club loan of A$5.9bn (US$4.5bn) to fund the A$7.62bn acquisition of New South Wales power grid Endeavour Energy.

      FRANCE: Elis taps for Berendsen

      IFR 2188 17 June to 23 June 2017

      Laundry services company Elis is backing its £2.2bn acquisition of UK-based peer Berendsen with a €1.92bn 12-month bridge loan from BNP Paribas and Credit Agricole.

      SWEDEN: Intrum Justitia nets €1.1bn

      IFR 2188 17 June to 23 June 2017

      Credit management company Intrum Justitia has agreed a €1.1bn multicurrency revolving credit facility as part of its planned merger with Norway’s Lindorff.

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      Equities

      HKEx renews push for tech listings

      IFR 2188 17 June to 23 June 2017

      Hong Kong Exchanges and Clearing has revived plans to attract new economy listings with a proposal to allow dual-class shares on a new third board, two years after the city’s regulator rejected a similar plan.

      Trio for Rs15bn Gujranwala IPO

      IFR 2188 17 June to 23 June 2017

      Arif Habib, Elixir Securities and MCB Bank have been hired to manage the Rs10bn–Rs15bn (US$95m–$143m) IPO of state-owned Gujranwala Electric Power.

      Buriram readies infra fund IPO

      IFR 2188 17 June to 23 June 2017

      Buriram Sugar Group Power Plant Infrastructure Fund plans to launch a Bt5bn (US$150m) IPO on the Stock Exchange of Thailand before year-end.

      Jeil IPO prices at bottom

      IFR 2188 17 June to 23 June 2017

      Conglomerate Jeil Holdings has priced its Korea Exchange IPO at the bottom of the range to raise W422bn (US$374m), according to a banker.

      MPI sells Manila Electric block

      IFR 2188 17 June to 23 June 2017

      Metro Pacific Investments has raised Ps12.6bn (US$256m) from a block of 50.7m shares in Manila Electric, via sole bookrunner UBS, at a fixed price of Ps250. The price represented a 6.5% discount to the pre-deal close of Ps267.40.

      Bain sells Skylark block

      IFR 2188 17 June to 23 June 2017

      Bain Capital Skylark Hong Kong has raised ¥41.5bn (US$373m) through the sale of a block of shares in restaurant group Skylark, priced close to the bottom of an indicative range, according to a company announcement.

      Integra prices smaller IPO

      IFR 2188 17 June to 23 June 2017

      Furniture maker Integra Indocabinet has priced its downsized IPO of Rp325bn (US$25m) at Rp260 a share, off an indicative range of Rp210–Rp315.

      GMF Aero Asia hires IPO banks

      IFR 2188 17 June to 23 June 2017

      Garuda Maintenance Facility Aero Asia has hired BNI, Bahana, Danareksa and Mandiri as underwriters for its IPO of up to US$300m set for the fourth quarter.

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      Derivatives

      Banco Popular

      Banco Popular tests revised CDS terms

      IFR 2188 17 June to 23 June 2017 By

      Credit default swaps referencing Banco Popular subordinated debt are set to trigger following the bank’s resolution, helping to restore confidence in an updated set of CDS definitions that were intended to improve protection in the event of government-led restructurings.

      Chris Giancarlo

      Euro-clearing proposal threatens swaps liquidity

      IFR 2188 17 June to 23 June 2017 By

      The US$483trn global over-the-counter derivatives market could be set to splinter along regional lines, sapping liquidity and raising costs for end-users if Europe follows through on new proposals that could force euro-denominated swaps clearing to locate within the bloc.

      Prato swaps ruling delivers blow to Italian authorities

      IFR 2188 17 June to 23 June 2017 By

      Italian local authorities that relied on local laws to invalidate legacy swaps obligations were delivered a blow last week as London’s Court of Appeal ruled that interest rate swaps entered into between Dexia Crediop and Comune di Prato between 2002 and 2006 were valid and binding.

      Industry faces pressure on EMIR reporting update

      IFR 2188 17 June to 23 June 2017 By

      Revised European rules for over-the-counter derivatives reporting, set to become effective on November 1, could hamper readiness for sweeping MiFID II requirements that come into play just two months later, market participants have warned.

      Basis swaps pave way for Samurais

      IFR 2188 17 June to 23 June 2017 By Takahiro Okamoto

      Dollar/yen basis swaps have tightened rapidly in recent weeks, providing encouragement for prospective Samurai issuers.

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      Special Reports

      IFR+Asian+Development+Bank+Roundtable+2017+Cover Asian Development Bank
      Mobilising Asian investors for sustainable development: IFR’s annual ADB roundtable, held as part of the Asian Development Bank’s annual meetings hosted this year by Yokohama, took place at a significant moment. This year marked not just the 20th anniversary of the Asian financial crisis but more importantly perhaps the 50th anniversary of the founding of the Asian Development Bank.

      Top+250+Borrowers+2017 Top 250 Borrowers
      Normality redefined: There comes a time when things have been out of kilter with what would generally be construed as normal for so long that they begin to become accepted as ‘just the way it is’. And so it is in the debt markets. Few would claim that conditions are currently normal, although just what that actually means is open to question.

      Keith Mullin

      What sank Popular? Supervisory negligence

      16 June 2017 By

      Keith Mullin assesses the aftermath of Spanish lender Banco Popular’s collapse

      All Commentary

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

      ​Pay and Display

      IFR 2188 17 June to 23 June 2017

      IF YOU THOUGHT parking was expensive in central London, then consider the case of Kwan Wai-ming, an executive director at Huarong Investment Stock Corp who has just paid HK$5.18m (US$664k) for his own permanent spot in Hong Kong.