Portugal paid a hefty price last week for its first syndicated trade since April 2016, and market participants are wondering if this is a taste of what is to come as the European Central Bank moves closer to reducing monthly purchases in its bond buying programme.
UniCredit is courting new investors to support its €13bn rights issue amid concerns that not all of its current shareholders will be willing – or able – to take up their rights in a transaction that is vital to turning around Italy’s biggest bank.
Concerns about banks’ ability to pay coupons on their Additional Tier 1 debt were reignited on Thursday, when UniCredit said it might not have capacity to pay the coupon on its AT1s if its capital-raising plan is not completed on time.
Investors dug in their heels last week on three investment-grade bond deals that tried to include more issuer-friendly terms, signalling that – for now at least – enough is enough.
Traders frequently dribble stock into the market when institutional investors are selling, but formal dribble-out plans – where the seller cedes control over sales of a stake to a single trader – rarely feature in ECM.
Federal regulators have criticised several Wall Street banks in relation to the handling of a US$1.15bn leveraged loan they arranged for internet-based taxi service Uber Technologies last summer.
Millennium BCP’s fourth capital increase in six years underlines why investors are cautious about believing that recapitalisations at European banks are ever the final step in fixing the balance sheet.
Keane Group, the Cerberus-backed oilfield services company, is off and running on an IPO targeting roughly US$300m. The offering, comprising both primary and secondary shares, is due to be priced this Thursday, which would make it the first US IPO of 2017.
Piraeus Bank is putting together plans to print the first bond issue from a Greek lender since mid-2014, in the latest sign that funding for the sector is slowly returning to normal after three years of capital controls and emergency assistance.
Bank of Cyprus priced its first public issue since bailing in bondholders during 2013’s Cypriot banking crisis, in one of the strongest indicators yet that its turnround story has won over investors.