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Sunday, 26 March 2017

Beetle juice

IFR 2176 25 March to 31 March 2017

Business as usual is not a mantra that Volkswagen has been able to trot out over the past 18 months.

Top News

Volkswagen logo

VW wows with blockbuster comeback

IFR 2176 25 March to 31 March 2017 By , Robert Hogg

Volkswagen left nothing to chance on its first euro unsecured bond since the emissions cheating scandal, with the issuer printing a blockbuster trade that silenced any concern about its access to the capital markets.

Glencore logo

Glencore tanks and scuppers Anglo's return

IFR 2176 25 March to 31 March 2017 By

Anglo-Swiss miner Glencore sold its first US dollar bond in two years last Tuesday, but the deal tumbled after pricing as a global sell-off added to a backlash against the deal’s tight spread.

Poland

Dino's off and running

IFR 2176 25 March to 31 March 2017 By ,

A brace of IPOs means Poland is back on equity investors’ radars for the first time in years, and the quick coverage for supermarket group Dino Polska’s float shows institutions are keen to buy.

Bucket with the colours of Argentina's national flag

Argentina's Swiss return comes at a price

IFR 2176 25 March to 31 March 2017 By

Argentina returned to the Swiss franc market last Thursday after an absence of nearly two decades, although the sovereign’s lowly ratings and chequered history meant the deal was an acquired taste for investors.

CFTC logo

SEFs gear up for brave new world

IFR 2176 25 March to 31 March 2017 By

Swap execution facilities are facing a new regime that some believe could make or break the platforms after acting CFTC chairman Christopher Giancarlo vowed to fix flawed swaps rules and allow market participants to choose the manner of execution best suited to their swaps trading.

Sears department store at Fair Oaks Mall in Fairfax

Troubled US retail space spells bondholder pain

IFR 2176 25 March to 31 March 2017 By ,

Investors are shunning the bonds of US retailers, even though much of the paper from the troubled sector is available at bargain-basement prices.

US dollar bills

Investors park cash in jumbo SPAC

IFR 2176 25 March to 31 March 2017 By

Silver Run Acquisition II, a special purpose acquisition company sponsored by Riverstone Group and headed by former Anadarko Petroleum CEO James Hackett, had a hard time turning investors away on its US$900m IPO. An initial target of US$400m for the energy-focused SPAC increased to US$550m before settling at US$900m. Exercise of the greenshoe, a likely outcome, would make it the largest-ever US SPAC float.

A giant panda

Rusal makes Panda statement

IFR 2176 25 March to 31 March 2017 By Ina Zhou

Highly leveraged aluminium producer United Company Rusal won over sceptical Chinese investors to complete Russia’s first Panda bond almost seven years after it first attempted to raise funds in renminbi.

The entrance of Portuguese bank headquarters Caixa Geral de Depositos is seen in Lisbon

CGD AT1 tempts investors

IFR 2176 25 March to 31 March 2017 By

Caixa Geral de Depositos cajoled investors into buying €500m of its most deeply subordinated debt, a key element in the state-owned bank’s recap plan, but the 10.75% coupon is the highest since the market’s infancy in 2013.

People stand outside the headquarters of China Oil and Foodstuffs Corporation (COFCO) in Beijing, China, November 3, 2016.

M&A scrutiny dents China loans

IFR 2176 25 March to 31 March 2017 By Carol Zhong

Chinese companies have completed only US$1.1bn of merger-and-acquisition loans so far this year, as government efforts to curb capital outflows and “irrational” overseas takeovers have taken a toll on event-driven lending, Thomson Reuters LPC data show.

IFR Magazine Top News in Full (subscription required)

People & Markets

Credit Suisse considers capital raise

IFR 2176 25 March to 31 March 2017

Credit Suisse kept shareholders guessing last week on whether it plans to launch a capital raising rather than float its domestic bank. The bank has said it needs to raise at least SFr2bn (US$2.02bn) this year.

Buoyant Q1 for Jefferies lifts expectations

IFR 2176 25 March to 31 March 2017

Jefferies Group rebounded from a big loss last year to report buoyant revenues in its latest quarter across fixed income trading, equity trading, debt and equity underwriting and merger advisory.

Who's moving where

IFR 2176 25 March to 31 March 2017

Bank of America Merrill Lynch has hired Eric Bischof from Morgan Stanley to co-head its global financial institutions group. Bischof will be based in New York and report to Diego De Giorgi, head of investment banking. He will be co-head alongside Jim O’Neil. Bischof has spent the last 20 years at Morgan Stanley, most recently as co-head of global FIG. He has specialised in insurance and worked on deals for AIG, ACE Group, Fortress Investment Group and Endurance Specialty Holdings

Deutsche softens bonus blow with €1.1bn 'retention award'

IFR 2176 25 March to 31 March 2017

Deutsche Bank has awarded deferred cash and shares worth up to €1.1bn across more than 5,500 staff in a special “retention award”, to soften the blow of a 77% plunge in the bank’s bonus pool last year.

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

Gnodding off

IFR 2176 25 March to 31 March 2017

GOLDMAN SACHS’S EUROPEAN CEO, Richard Gnodde, grabbed the headlines last week by declaring the US bank was planning to hire or relocate “hundreds” of staff in its European operations outside London as part of its contingency planning for Brexit.

    More from People & Markets

    Bonds

    InBev targets US$3.1bn exchange

    IFR 2176 25 March to 31 March 2017

    AB InBev has opened an exchange offer on 10 of its US dollar notes for a combination of new 2048 notes and cash, according to a statement from the company.

    European politics trump Asian demand

    IFR 2176 25 March to 31 March 2017

    Japanese investors, who were big net buyers of French sovereign bonds for most of 2016, have been reducing their positions since November, contributing to a dip in Asian allocations on recent SSA offerings.

    KCA Deutag forced to change structure, hike yield

    IFR 2176 25 March to 31 March 2017

    Oil services company KCA Deutag was forced to change the structure and hike the yield of its struggling junk bond offering to get the deal over the line on Tuesday.

    Spreads reach widest of year

    IFR 2176 25 March to 31 March 2017

    US junk-bond spreads gapped out to their widest levels of the year last Wednesday, moving in the opposite direction of their high-grade counterparts as investors show some jitters about the asset class.

    RSA launches tender on two securities

    IFR 2176 25 March to 31 March 2017

    RSA Insurance Group has invited bondholders to tender for purchase for cash a £500m note due 2039 and a £375m perpetual note, to optimise its capital structure.

      More from Bonds

      Loans

      Australia: BoC steps up for Alinta purchase

      IFR 2176 25 March to 31 March 2017 By Sharon Klyne

      Bank of China is financing most of the A$4bn (US$3bn) acquisition of Australian gas and electricity retailer Alinta Energy by Hong Kong’s Chow Tai Fook Enterprises.

      Netherlands: Basic-Fit ups RCF to €175m

      IFR 2176 25 March to 31 March 2017

      Dutch fitness club operator Basic-Fit has increased its revolving credit facility to €175m from €100m to help fund increased investments for its accelerated growth plan.

      Metinvest finalises restructuring

      IFR 2176 25 March to 31 March 2017

      Ukrainian metals and mining group Metinvest has completed the restructuring of its US$2.3bn debt.

      Hunkemoller seeks divi recap

      IFR 2176 25 March to 31 March 2017

      Dutch lingerie firm Hunkemoller has launched a €430m dividend recap.

      Audiotonix allocates TLB

      IFR 2176 25 March to 31 March 2017

      UK audio mixing console manufacturer Audiotonix has allocated its £142m-equivalent term loan B backing its buyout by Astorg after tightening pricing during syndication.

      Pfleiderer seeks €450m refi

      IFR 2176 25 March to 31 March 2017

      Polish wood materials company Pfleiderer Group has launched a €450m refinancing.

      Financing for Ardian’s Prosol buy

      IFR 2176 25 March to 31 March 2017

      BNP Paribas, Credit Agricole and Natixis have provided leveraged loan financing to back Ardian’s acquisition of a majority stake in Prosol, founder of fresh food retailer Grand Frais.

      Independent Vetcare raises £182m

      IFR 2176 25 March to 31 March 2017

      UK veterinary care business Independent Vetcare is raising an extra £182m-equivalent of leveraged loans to back its merger with Northern European peer Evidensia.

      More from Loans

      Equities

      France: EDF set for rights success

      IFR 2176 25 March to 31 March 2017

      Subscriptions closed for EDF’s €4bn rights issue last Tuesday with bankers on the deal confident that take-up will be very high, with any unsubscribed shares comfortably covered by over-subscriptions.

      Equities week in numbers March 25 2017

      Week in numbers - March 25 2017

      IFR 2176 25 March to 31 March 2017

      South Korea: ING Life Insurance targets US$1.2bn

      IFR 2176 25 March to 31 March 2017

      The planned IPO of ING Life Insurance Korea could raise up to W1.3trn (US$1.2bn), according to the deal term sheet.

      South Korea: Celltrion Healthcare eyes late May

      IFR 2176 25 March to 31 March 2017

      Celltrion Healthcare could begin pre-marketing for its expected W1trn (US$871m) IPO in around two months, according to a person close to the deal.

      South Korea: Netmarble IPO to raise up to US$2.4bn

      IFR 2176 25 March to 31 March 2017

      Mobile gaming company Netmarble Games, maker of the popular Lineage 2 Revolution game, plans to raise up to W2.7trn (US$2.4bn) from its KRX IPO, according to the deal term sheet.

      Singapore: HNA to buy into REIT float

      IFR 2176 25 March to 31 March 2017

      HNA Investment Group, a Shenzhen-listed unit of HNA Group, is to invest in AEP Commercial REIT’s S$300m-$400m (US$212m-$283m) Singapore Exchange IPO, which is due to come to market in the second half of the year.

      Singapore: Viz Branz postpones SGX IPO

      IFR 2176 25 March to 31 March 2017

      Beverage and snack maker Viz Branz has postponed its S$190m–$213m (US$134m–$151m) Singapore Exchange IPO on concerns over post-listing performance.

      Singapore: Mapletree plans student-housing IPO

      IFR 2176 25 March to 31 March 2017

      Mapletree Investments, a Temasek unit, plans to launch an IPO of its student-housing assets when the portfolio grows to S$4bn-$5bn (US$2.8bn-$3.6bn) from S$1.8bn currently.

      More from Equities

      Derivatives

      CFTC logo

      SEFs gear up for brave new world

      IFR 2176 25 March to 31 March 2017 By

      Swap execution facilities are facing a new regime that some believe could make or break the platforms after acting CFTC chairman Christopher Giancarlo vowed to fix flawed swaps rules and allow market participants to choose the manner of execution best suited to their swaps trading.

      Hong Kong launches first RMB options

      IFR 2176 25 March to 31 March 2017

      Hong Kong Exchanges and Clearing last week launched its first currency options, rolling out more renminbi-related derivative products in a bid to cement Hong Kong’s status as the main offshore renminbi trading hub.

      LCH kick-starts client CDS clearing with Amundi

      IFR 2176 25 March to 31 March 2017 By

      Amundi has become the first European buyside client to begin clearing credit default swaps through CDSClear, LCH’s Paris-based clearinghouse.

      EuroStoxx logo

      VStoxx shrugs off election risk

      IFR 2176 25 March to 31 March 2017 By

      Europe’s VStoxx volatility index continued to trade at a historically tight spread over the US VIX last week, shrugging off French election risk even as global volatility measures jumped off record lows.

      Sign outside Neiman Marcus Last Call store

      Neiman Marcus bondholders left guessing

      IFR 2175 18 March to 24 March 2017 By

      Troubled retailer Neiman Marcus is considering an outright sale of the company, but that would be likely to prove extremely costly unless bond or equity holders take steep losses.

      More from IFR Derivatives

      MOVES-UniCredit names Corsini as transaction banking co-head

      24 March 2017

      UniCredit said Luca Corsini will become co-head of global transaction banking from August alongside Jan Kupfer.

      Anthony Peters columnist format

      The Wall Street Shuffle

      24 March 2017 By

      The Dow traded in a 140-point range on Thursday and still ended up closing a mere 4.72 points from where it had started.

      MOVES-Meyers rejoins JP Morgan to head ECM for sub-Sahara Africa

      24 March 2017 By Steve Slater

      JP Morgan has rehired Barry Meyers from Barclays to head its equity capital markets business for sub-Saharan Africa.

      Abbott offloads Mylan stake via US$1.7bn overnight block

      23 March 2017 By

      Abbott Laboratories has sold more than 60% of its remaining stake in EpiPen maker Mylan in a US$1.7bn unregistered block trade via Morgan Stanley, one of the largest-ever commitments in this format.

      Companies tap bonds to make pension contributions: BAML

      23 March 2017 By

      Companies have been increasingly issuing high-grade bonds to make contributions to pension plans. But any new supply will be offset by increased demand from private defined benefit plans rotating out of equities into fixed-income, said Bank of America Merrill Lynch in a report released on Thursday.

      Investors snap up big US$12.5bn ABS pipeline

      23 March 2017 By

      Investors snapped up some US$12.5bn of new asset-backed bond supply this week, chalking up a big win for the sector in its busiest period of the year.

      The entrance of Portuguese bank headquarters Caixa Geral de Depositos is seen in Lisbon

      CGD AT1 convinces investors, but at a cost

      23 March 2017 By

      Caixa Geral de Depositos cajoled investors into buying €500m of its most deeply subordinated debt, a key element in the state-owned bank’s recap plan, but the 10.75% coupon was the highest since the market’s infancy in 2013.

      The emblem of a Volkswagen VW bus is pictured during a press presentation prior to the Essen Motor Show in Essen

      Volkswagen wins over investors in bond market return

      23 March 2017 By Robert Hogg

      Volkswagen left nothing to chance for its first euro unsecured bond since the emissions cheating scandal, with the issuer on course to price a blockbuster trade that will settle any concern around its access to the capital markets.

      ASTONMARTIN.jpg

      Aston Martin hits the road for public bond comeback

      23 March 2017 By Robert Smith

      Aston Martin is looking to return to the public debt markets for the first time in more than five years, in order to take out high-coupon secured and PIK debt at more attractive rates.

      tidjane thiam credit suisse

      Credit Suisse considers stock sale instead of Swiss unit IPO - sources

      23 March 2017 By John O'Donnell, Pamela Barbaglia

      (Reuters) Credit Suisse is considering an accelerated bookbuilding to raise capital instead of selling a minority stake in its Swiss banking division, two sources familiar with the matter told Reuters.

      Italy's largest bank UniCredit is pictured in downtown Milan

      MOVES-UniCredit names Maffezzoni head of strategy and M&A

      23 March 2017

      UniCredit has appointed Andrea Maffezzoni as head of strategy and mergers and acquisitions.

      US IG market takes breather ahead of vote

      23 March 2017 By

      The US high-grade bond market took a pause on Thursday, with prospective borrowers staying on the sidelines ahead of a closely watched vote in Congress on health care reform.

      US high-yield bond spreads widest of year: BAML

      23 March 2017 By ,

      US junk bond spreads have gapped out to their widest levels of the year, moving in the opposite direction of their high-grade counterparts as investors show some jitters about the asset class.

      MOVES-El-Amir leaves UniCredit for Evercore

      23 March 2017 By

      Waleed El-Amir, head of group finance at UniCredit, has left the bank, according to two market sources.

      Yes Bank increases financing

      India’s Yes Bank launches Rs49bn share sale with smaller syndicate

      23 March 2017 By S Anuradha

      India’s Yes Bank has launched a Rs49bn (US$750m) qualified institutional placement in the Rs1,455–Rs1,500 range.

      MOVES-Cairns to be head of corporate finance after NBAD-FGB merger

      23 March 2017 By Sandrine Bradley

      Andy Cairns is to take up the new role of head of corporate finance when National Bank of Abu Dhabi and First Gulf Bank merge on April 7, banking sources said.

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      Special Reports

      IFR Review of the Year 2016
      It’s normally fair to say that bankers grumbling about the state of the markets deserve the same sympathy as farmers moaning about the weather. It goes with the territory. And it is up to them to simply get on with it.

      IFR Americas Review of the Year 2016
      Markets are more agnostic about elections than the public at large. Even as half (or more) of America was gnashing its teeth over the election of the country’s first non-politician president since Eisenhower, the “Trump Rally” was in full flight.

      IFR German Corporate Funding Roundtable 2016
      IFR convened its fifth annual German Corporate Funding Roundtable in Frankfurt in mid-November just as bond markets, led by US Treasuries, were starting their sharp re-pricing off the back of higher inflation expectations and tighter US money.

      IFR India's Path to Sustainable Growth Roundtable 2016
      IFR recently convened a highly insightful roundtable discussion in Washington DC, entitled “India’s Path to Sustainable Growth: Challenges and Opportunities”. State Bank of India chair Arundhati Bhattacharya delivered some affirmative opening comments that eloquently framed the discussion that followed./p>

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

      Gnodding off

      IFR 2176 25 March to 31 March 2017

      GOLDMAN SACHS’S EUROPEAN CEO, Richard Gnodde, grabbed the headlines last week by declaring the US bank was planning to hire or relocate “hundreds” of staff in its European operations outside London as part of its contingency planning for Brexit.