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Wednesday, 22 November 2017

Verizon announces tender and exchange offers

21 November 2017 By

Telecoms giant Verizon is out with both tender and exchange offers in the company’s latest attempt to spruce up its debt profile.

Trafigura

Trafigura places first true sale commodity ABS

21 November 2017 By

Commodity trading firm Trafigura has structured what it says is the first true sale securitisation of commodities. The company already has an existing programme securitising trade receivables.

Blackstone Group office

Borrowers on good terms with long-dated property bonds

21 November 2017 By

Major real-estate investors are seizing on red-hot conditions to sell longer-dated property secritisations at little extra cost, even as the buyside grumbles about skimpy concessions.

Oil refinery

Raffinerie Heide out with rare oil dividend recap

21 November 2017 By

German refining firm Raffinerie Heide is out with a €250m senior secured 5NC2 dividend recapitalisation deal, a rarity for issuers out of the sector.

IFR SNAPSHOT: Primaries slow down for holiday feast

21 November 2017 By

Turkey Day’s coming, but it’s really time for some goose.

Moody's sign

Leveraged loan repeal won't make things worse: Moody's

21 November 2017 By

Moody’s said it believes the potential repeal of leveraged loan guidance would not materially worsen lending conditions, primarily because the market is already overheated.

Whole Foods sign

Amazon exchange offer makes sense to CreditSights

21 November 2017 By

CreditSights recommended investors accept an offer to exchange Whole Foods Market’s 5.2% 2025s into new bonds issued by online giant Amazon with weaker structural protections.

Spain Houses

Colonial springs out of blocks with M&A refi

21 November 2017 By ,

Spain’s Inmobiliaria Colonial Socimi barely broke its stride in taking out a €1.2bn bridge loan as it launched an €800m dual-tranche bond offering.

View of the Renault headquarters in Boulogne-Billancourt, near Paris

Renault makes inroads into premium

21 November 2017 By

Renault (Baa3/BBB/BBB-) upsized an eight-year offering by €250m on Tuesday as the French automaker repeated a price move from earlier in the year with a 22bp cut from IPTs.

Berlin Hyp sign is seen on an office building

Berlin Hyp goes negative again with rare four-year

21 November 2017 By

Berlin Hyp tore out of the blocks on Tuesday, emerging alongside five other senior and covered transactions, by swiftly launching a rare short-dated Pfandbrief that priced at a -0.108% yield.

McDonald's logo

McDonald's offers taste of euros

21 November 2017 By

McDonald’s Corp served up two slabs of fixed-rate euro bonds for investors on Tuesday, as it made its second foray into the currency this year.

French flag

Credit Logement spruces capital with new Tier 2

21 November 2017 By

Credit Logement has slightly reduced its stock of capital securities via a tender, taking out a combined €695.75m of old notes and replacing them with a new €500m Tier 2.

Unipol Gruppo

Fresh-faced Unipol makes bond market return

21 November 2017 By

Unipol Gruppo is set to bring its first bond since a restructuring carved out its non-performing loans into a bad bank and saw it sell two insurance holdings to its main operating subsidiary.

RBC

Royal Bank of Canada joins G-SIB ranks

21 November 2017 By

Royal Bank of Canada has been added to the list of 30 global systemically important banks by the Financial Stability Board of international regulators. It replaces Group BPCE, owner of Natixis, on the list in the latest annual review.

Frankly my dear...

21 November 2017 By Anthony Peters, BlockEx Capital Markets

The crisis in the formation of a new German government rolls on with markets seemingly not giving a fig for the public manifestations by politicians of all hues. 

A woman walks down the stairs of the Standard Chartered headquarters in Hong Kong.

StanChart targets 5%-7% annual growth for investment bank

21 November 2017 By ,

Standard Chartered plans to increase revenues at its investment bank by 5%–7% a year over the medium term as part of a plan to lift profitability across the bank, it said on Tuesday.

All Latest news

Talking junk

IFR 2210 18 November to 24 November 2017

For all the panicky headlines last week about the end of the world in junk bonds, the sector isn’t really in bad shape at all.

Top News

Bulls

Investors keep nerve as high-yield wobbles

IFR 2210 18 November to 24 November 2017 By , ,

Global high-yield markets were shaken by a number of pulled deals last week but investors insist it’s not yet panic time for the asset class.

Euro notes

Investors very sure about Verisure

IFR 2210 18 November to 24 November 2017 By ,

Investors piled into the €1.835bn leveraged loan and high-yield bond financing for Swedish alarms company Verisure last week, despite an aggressive structure that left many describing the deal as “top of the market” issuance.

Multiplan

H&F sweetens MultiPlan junk bond

IFR 2210 18 November to 24 November 2017 By

Private equity firm Hellman & Friedman had to sweeten the terms Thursday on an aggressive new junk bond that saddles one of its companies with another US$1.3bn of debt just to pay itself a dividend.

Cairge

'Underwriters' say Carige deal is back on track

IFR 2210 18 November to 24 November 2017 By

Banca Carige’s management scrambled to save the Italian bank’s capital-strengthening plan on Friday after the banks that provided volume underwriting for its €560m rescue capital increase balked at signing up for full underwriting.

PDVSA

Venezuela credit event leaves investors in uncharted waters

IFR 2210 18 November to 24 November 2017 By

Rating agencies and ISDA declared Venezuela in default last week, but with the sovereign continuing to pay debt, the situation for investors is anything but clear.

Green Bonds

Green bond issuance in 2017 hits US$100bn

IFR 2210 18 November to 24 November 2017 By

The Green bond market hit a milestone last week as issuance for the year passed the US$100bn mark, according to the Climate Bonds Initiative, an international organisation that promotes Green finance.

People walk past the R&D centre of Contemporary Amperex Technology Ltd (CATL) in Ningde, Zhejiang province, China.

Battery outfit to raise Rmb13bn from record ChiNext listing

IFR 2210 18 November to 24 November 2017 By ,

Battery giant Contemporary Amperex Technology is working on a record A-share IPO from China’s private sector, tapping into investor enthusiasm for new energy technology.

Reels of sewing thread

Stitch Fix forced to discount wares on IPO

IFR 2210 18 November to 24 November 2017 By

The fabric underlying the US IPO market is unravelling. Stitch Fix, a six-year-old online fashion store, became the latest victim of investor push-back, selling 8m shares at US$15 to raise US$120m, below the US$18–$20 targeted and less than the 10m shares launched.

Lexin joins shaky IPO pipeline

Lexin joins shaky IPO pipeline

IFR 2210 18 November to 24 November 2017 By

Chinese online micro-lender LexinFintech filed for a Nasdaq listing last week, joining an IPO pipeline that is already showing signs of indigestion after a glut of offerings from the sector.

BNP Paribas sign

BNP Paribas partners GTS for US Treasury trading

IFR 2210 18 November to 24 November 2017 By

BNP Paribas has partnered with electronic market-making firm GTS for US Treasury trading, cementing a new era of collaboration between banks and automated trading firms in an increasingly electronic market where technology is providing the competitive edge.

IFR Magazine Top News in Full (subscription required)

People & Markets

Banks face 'Kodak moment' from fintech

IFR 2210 18 November to 24 November 2017

Banks are facing seismic changes from the impact of new technology that is likely to see many collapse - akin to the near-death of Kodak from its failure to move with the times, a former boss of Barclays has warned.

Muted trading persists in Q4

IFR 2210 18 November to 24 November 2017

Tough trading conditions have continued during the fourth quarter, putting investment banks on track for another annual decline in revenues.

Bonuses set to swing higher

IFR 2210 18 November to 24 November 2017

It’s beginning to look a lot like Christmas for investment bankers with bonuses for this year set to rise as much as 20% over 2016 levels in some segments, according to consultancy Johnson Associates.

Koji Fujiwara, President and CEO of Mizuho Bank, core banking unit of Mizuho Financial Group, attends an interview with Reuters at the bank's headquarters in Tokyo, Japan.

Mizuho to slash jobs amid profit pressure

IFR 2210 18 November to 24 November 2017

Mizuho Financial Group will slash its headcount by around a quarter in the next decade in an effort to shrink its cost base and boost dwindling profitability.

Index test looms for China bonds

Index test looms for China bonds

IFR 2210 18 November to 24 November 2017

China’s efforts to open its domestic bond market to foreign investors may soon be rewarded with inclusion in some of the world’s biggest debt indexes.

    More from People & Markets

    Bonds

    Patience pays off for Volvo

    IFR 2210 18 November to 24 November 2017

    Volvo Car priced a €500m long seven-year trade at 2% after waiting out the high-yield market’s softening following the end of its roadshow on Wednesday.

    Week in Numbers - November 18 2017

    Week in Numbers - November 18 2017

    IFR 2210 18 November to 24 November 2017

    Salt brings 'aggressive' 10-year into HY wobble

    IFR 2210 18 November to 24 November 2017

    Swiss mobile operator Salt brought a €400m 10-year non-call five senior secured refinancing trade at 4%, pricing aggressively despite a soft backdrop that has seen telecoms names hit in particular.

    A Valiant effort with first standalone Swiss covered

    IFR 2210 18 November to 24 November 2017

    Valiant Bank on Wednesday brought the first Swiss franc-denominated contractual covered bond from a standalone domestic bank, garnering a large book for a popular deal.

    Investors drink up rare Italian in covered wave

    IFR 2210 18 November to 24 November 2017

    Friday the 17th might be considered unlucky in Italy, but Mediobanca’s decision to offer a rare covered transaction - only the fifth from the jurisdiction this year - paid off.

      More from Bonds

      Loans

      Euro notes

      Investors very sure about Verisure

      IFR 2210 18 November to 24 November 2017 By ,

      Investors piled into the €1.835bn leveraged loan and high-yield bond financing for Swedish alarms company Verisure last week, despite an aggressive structure that left many describing the deal as “top of the market” issuance.

      Japanese lenders warm to infra funds

      Lenders warm to infra funds

      IFR 2210 18 November to 24 November 2017 By Wakako Sato

      Infrastructure funds are gaining a foothold in the Japanese debt markets as the maturing solar power sector provides alternative lending opportunities for Japan’s liquid banks.

      Indian corporates switch to bonds as loans dry up

      IFR 2210 18 November to 24 November 2017

      Indian companies are finding it easier to raise funds through bonds than bank loans, as a surge in bad credit chokes off bank lending while investors seek higher-yielding investments for their cash.

      China: Shougang seeks two-year loan

      IFR 2210 18 November to 24 November 2017

      State-owned steelmaker Shougang has launched a two-year loan of up to US$300m.

      China: Huawei launches US$1.2bn bullet

      IFR 2210 18 November to 24 November 2017

      Huawei Technologies has launched a US$1.2bn five-year bullet loan.

      Blackstone acqn loan launches

      IFR 2210 18 November to 24 November 2017

      An A$715m four-year acquisition loan to back private equity firm Blackstone Group’s acquisition of a portfolio of logistics property assets from Goodman Group has been launched into general syndication.

      Australia: Royal Adelaide to refinance

      IFR 2210 18 November to 24 November 2017

      The sponsors of the Royal Adelaide Hospital are in talks to refinance the A$2.6bn (US$2bn) 84-month project loan ahead of the May 2018 maturity date.

      Australia: MINT seeks debut

      IFR 2210 18 November to 24 November 2017

      Hospitality company Minor International (MINT) is seeking a debut A$150m five-year term loan for refinancing purposes.

      More from Loans

      Equities

      Logos of Woodside Petroleum are seen at Gastech, the world's biggest expo for the gas industry, in Chiba, Japan.

      Woodside block lights up Aussie ECM

      IFR 2210 18 November to 24 November 2017

      Energy giant Shell capitalised on a rally in oil prices last week to offload its entire A$3.5bn (US$2.7bn) stake in Woodside Petroleum in Australia’s largest block trade since early 2015.

      US: Blocks deliver better performance

      IFR 2210 18 November to 24 November 2017

      Blocks took a back seat to marketed deals during the week but banks still showed a willingness to use their balance sheets to snare late-year league table credit.

      US: Sterling Bancorp makes solid debut

      IFR 2210 18 November to 24 November 2017

      Michigan-based Sterling Bancorp accelerated pricing on its US$180m IPO to last Thursday instead of the following Monday before upsizing the deal by 50%.

      Belgium: Nyrstar raises fresh capital

      IFR 2210 18 November to 24 November 2017

      Metals and mining company Nyrstar raised €100m in fresh capital on Tuesday evening to restart the Myra Falls copper-zinc-lead mine in British Columbia, and redevelop the Port Pirie zinc-lead smelter in Australia.

      Russia: Magnit founder places shares as part of capital increase

      IFR 2210 18 November to 24 November 2017

      Sergey Galitskiy, the founder and CEO of Magnit, sold 7.5% of the Russian low-cost retailer on Tuesday in an accelerated transaction to raise Rbs43.913bn (US$729m) that will be re-invested in new shares issued by the company as part of an open offer.

      France: Shareholder cuts Direct Energie stake

      IFR 2210 18 November to 24 November 2017

      Energy group EBM Trirhena sold around 50% of its holding in electricity and gas supplier Direct Energie on Wednesday evening in an accelerated transaction managed by BNP Paribas.

      UK: Tri-Pillar Infrastructure Fund to list in London

      IFR 2210 18 November to 24 November 2017

      Members of the team that advised the John Laing Infrastructure Fund plan to list shares in Tri-Pillar Infrastructure Fund, which they claim differs fundamentally from traditional infrastructure funds.

      UK: Bakkavor trades up on debut

      IFR 2210 18 November to 24 November 2017

      Bakkavor shares began trading in London on Thursday and came through the debut session in reasonably good shape with a 3.6% gain on pricing, despite the seller’s decision not to include a greenshoe option.

      More from Equities

      Derivatives

      JPM seeks fixed income SI status under MiFID II

      IFR 2210 18 November to 24 November 2017 By

      JP Morgan has said it plans to become a systematic internaliser for all fixed income instruments under MiFID II.

      KVA added to TriOptima risk analytics

      IFR 2210 18 November to 24 November 2017 By

      Post-trade processing firm TriOptima has expanded its triCalculate credit risk analytics service to include capital valuation adjustment (KVA), which reflects the cost of regulatory capital over the lifetime of an over-the-counter derivatives trade.

      Astaldi slumps further

      IFR 2210 18 November to 24 November 2017

      Italian construction firm Astaldi’s €750m 7.125% senior unsecured 2020s plummeted further last week on confirmation of its financial and capital strengthening plans and a writedown of its Venezuelan assets.

      Buehler debuts, Hochdorf eyes hybrid

      IFR 2210 18 November to 24 November 2017

      Buehler made its bond market debut on Wednesday with a dual-tranche five and nine-year that tested the appetite of Swiss investors for Triple B rated paper.

      Singapore futures track MSCI benchmarks

      IFR 2210 18 November to 24 November 2017 By

      Singapore Exchange launched its first derivatives contracts offering exposure to multi-currency and multi-country emerging market indices last week.

      More from IFR Derivatives

      Digital Edition

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      Special Reports

      IMF/World Bank Report IFR+IMF+Report+2017+Cover+web
      Emerging market countries, where the IMF has concentrated much of its resources, reveal a strange state of affairs.

      Top 250 Borrowers Top+250+Borrowers+2017
      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.

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

      Seconds out

      IFR 2210 18 November to 24 November 2017

      AFTER ALL THE trash talk, the showdown of the year took place last week. No, this wasn’t ex-Barclays man Sam Dean’s bout at a charity boxing night (he escaped with an honourable draw), but Deutsche Bank chief John Cryan’s meeting in Frankfurt with Adam Tan, CEO of China’s HNA Group, Deutsche’s major shareholder.