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News Archive

  • BNG EUR1bn 1.125% Sep 24

  • Finland EUR4bn 0.375% Sep 20

  • FMSW USD1.5bn 1.125% Sep 17

  • EIB USD3bn 2.125% Oct 21

  • Deutsche Bank hires BAML equity chief

    John O’Brien, former managing director and head of New York derivatives sales at Bank of America Merrill Lynch, started at Deutsche Bank this week.

  • SEFs call on CFTC to extend data reporting relief

    A recent no-action letter from the US Commodity Futures Trading Commission that provided swap execution facilities relief from certain data reporting requirements for uncleared derivatives should be extended to cleared contracts.

  • Russian loan club defies events — for now

    The efforts of six or seven European banks to keep the Russian loan markets afloat, despite a worsening outlook, were rewarded this week: Gazprom Neft requested bank proposals on a new five year money loan. But normalisation is further off than ever.

  • ICMA revamps sovereign default rules

    The International Capital Market Association is releasing revised and updated collective action clauses (CACs) to deal with defaults for syndications not already subject to the euro area model collective action clauses introduced in January 2013. The documentation includes for the first time a standard pari passu clause in a move intended to allow for a more predictable process in sovereign debt restructurings.

  • Ramírez NY plan gives Sidetur holders hope

    The Venezuelan vice president for the economy, oil and mines minister, and president of oil company PDVSA is planning to meet investors in New York in September in a trip that some hope will shed some light on the next step for steel company Sidetur. The firm defaulted on its bonds a year ago.

  • Lending Club IPO revives peer-to-peer securitization debate

    Lending Club announced a $500m initial public offering on Wednesday, sparking renewed speculation over how the company’s peer-to-peer lending assets could be acquired by banks and securitized.

  • Brazil’s GOL cruises to stable outlook with new LM

    Standard & Poor’s removed Brazilian low cost airline GOL from negative outlook after the company announced its second bond tender of the quarter on Tuesday. GOL is aiming to buy back dollar bonds maturing in 2017, 2020 and 2023.

  • CLO issuance continues apace as risk retention nears

    New CLOs continued to hit the US market this week even as issuance of other securitized products slumbered — and that will only continue next week after Labor Day, as regulators turn their attention to risk retention rules after passing Reg AB II on Wednesday.

  • Leak: Lost in Iceland

    With the English summer already over and the sweltering weather apparently gone, reports are coming in that MTN aficionados decided to chase the Mediterranean climate, but got lost. The bankers seem to have collectively got on the wrong flight. As you read this they find themselves in Iceland.

  • Bankers to woo investors as niche redemptions loom

    Local currency bankers are working hard to win business in an expected a flurry of niche activity over the coming weeks with big ticket redemptions in non-core currencies on the horizon.

  • Magnificent seven keep Russian loans alive

    The deepening crisis between Russia and Ukraine escalated further this week and talks at the Minsk summit achieved little. But despite the lengthening odds, new Russian loan deals are still coming through and six – or possibly seven – European banks are widely held to be working hard to keep the market going.

  • ECB to print euros for Christmas

    European Central Bank president Mario Draghi’s admission last week that inflation expectations are not well anchored has bolstered the prospects for a quantitative easing (QE) programme. But what to buy remains the thorny question.

  • Autos could go private to avoid enhanced disclosure

    After the SEC approved loan-level disclosure rules for public transactions, auto lenders may be pushed towards issuing their ABS deals in the private market, said analysts this week. The shift could come even as the sector comes under increased regulatory scrutiny.

  • Renten and KBN join hot Kauri market

    Rentenbank was this week the latest supranational or agency to take advantage of the scorching popularity of the Kiwi dollar market, pricing its second tap of a March 2019 Kauri bond, with books closing at double its minimum target. The deal follows Kommunalbanken’s increase of its own March 2019 Kauri line and caps a busy month for Kauri, including African Development Bank’s first in the format in six years.

  • UBS EUR1.5bn FRN Sep 16, EUR1.5bn 1.25% Sep 21

  • Unédic mandates in euros as issuers bask in demand after summer lull

    Unédic is set to become the third issuer this week to bring a euro benchmark after the summer, having mandated a deal for Friday following deals for Finland and Bank Nederlandse Gemeenten (BNG) earlier in the week.

  • Vitol breaks summer lull, launching $5.5bn revolver to lenders

    Commodity trading company Vitol has launched a global revolving credit facility of about $5.5bn to replace outstanding loans.

  • Loan banks woo Kazakhs as Kazakhmys leads talks

    Kazakhstan mining firm Kazakhmys is in talks with banks about refinancing loans, with officials saying the borrower is one of three Kazakh firms holding such discussions.

  • FCA says just 1.2% of RBS mortgage advice sound

    The Financial Conduct Authority fined Royal Bank of Scotland just under £15m this week for “serious failings” in its advised mortgage sales business, saying that only two of the 164 sales reviewed were considered to meet the regulator’s standard.

  • CBA heads for size increase as RMBS orders top A$3bn

    Commonwealth Bank of Australia may print more than the A$1bn original size indicated for its Medallion Trust Series 2014-2 RMBS transaction after having the deal covered three times over by Thursday morning in London. The price guidance is 10p inside the level of the bank’s last deal, as RMBS funding continues to cheapen for Australian banks.

  • Upstart UBS threatens CS’s home market hegemony

    Zurich based debt bankers are preparing for an exciting close to the year, with September set to bring a four month race between the Swiss franc market’s two top dogs as perpetual bridesmaid UBS threatens to take the top spot for the first time since the 1990s.

  • BMW’s bold €1.75bn opens new phase of minuscule coupons

    BMW reopened the European benchmark investment grade corporate bond new issue market on Tuesday with a punchy €1.75bn deal that sent a strong signal: spreads — and especially yields — for corporate issuers are set for a very tight autumn. BMW paid a coupon of just 0.5% on its €1bn four year tranche. But despite these pitifully thin yields, investors are eager to buy.

  • UK mortgages down but lenders preparing RMBS

    Restrictions on UK mortgage lending introduced in April are having a cooling effect on the housing market, according to figures from the British Banking Association. But with mortgage approvals still up 12% year-on-year, UK lenders — including a potential debut issuer — will have plenty of assets to hand for an anticipated return to RMBS next month.

  • Bankers brace for ABS buying as BlackRock joins ECB team

    The European Central Bank took a big step closer to launching outright European securitization purchases this week as it hired BlackRock to help design the long-awaited plan. But ABS bankers are warning it will take time for a depleted investor pool to grow sufficiently to support president Mario Draghi’s ultimate goal of delivering more funding to the continent’s smaller companies.

  • Vakifbank adds to Turkish wave

    September looks set to field a rush of Turkish bank loans, with Vakifbank adding its name to the institutions already in the market for the year’s second wave of refinancings.

  • Whopper Burger King deal sparks C$ options trading

    Investors have been buying short-dated options on the euro and US dollar against the Canadian dollar, as the Canadian unit has continued to strengthen over recent days following the announcement that Burger King will buy Canadian fast food chain Tim Hortons.

  • FIG bankers fret over Yankee issuance

    US FIG syndicate bankers are gearing up for a busy September but fear that the onset of the European Central Bank’s Targeted Longer Term Refinancing Operations (TLTROs) will dent issuance from Yankee borrowers.

  • Africa won’t make up for loss of Russian loans

    The international Russian syndicated loan market is in dreadful shape, as relations between Russia and the west plumb new depths. Lending banks are trying to reorient their personnel and capital to other regions — Africa and the Middle East are natural places to turn. But while they could be promising areas of growth in the future, banks should be wary of quick fixes.

  • HY’s return to inflows cheers levfin bankers

    Bankers have welcomed a revival of investor appetite for high yield bonds, after inflows to high yield funds in Europe resumed last week, raising hopes of a more supportive market for issuers in September.

  • LSE launches Russell funding rights issue at tight discount

    London Stock Exchange Group launched a £938m rights issue last Friday that will fund its previously announced acquisition of index services firm Frank Russell Company. The deal came alongside the LSE's results, which showed surging profits on the back of record IPO volumes.

  • M&A to drive Europe corporate bond issuance as deals mount

    Mergers and acquisitions are set to be an important driver of corporate bond issuance this autumn. Deal mandates are already building up — in fact, M&A is the driver for virtually all the deals that have yet appeared in Europe’s corporate bond pipeline this season.

  • EIB enhances its first German project bond

    Via Solutions Nord has issued a €429m private placement as part of the funding for a €600m extension of the A7 motorway in northern Germany.

  • AFD to meet investors before potential climate bond debut

    Agence Française de Développement has hired banks to arrange a string of investor meetings in Europe before a potential debut climate bond in euros.

  • Leveraged loans, news in brief - 29 August, 2014

    Spire Healthcare refis debt - Douglas Holding sole August borrower

  • Equity capital markets, news in brief — August 29, 2014

    Deceuninck — Bank of Cyprus — OCI — JW Construction Holding — Telefónica — Atlas Mara

  • Covered bond funding decisions deferred

    Few covered bond issuers are rushing to bring the first deal of September, traditionally one of the busiest issuance periods of the year. There are an unusually high number of regulatory and macroeconomic factors to consider this year, making a slow start likely.

  • BNS prepares to issue SEC covered bond

    Nearly a year after registering its covered bond programme with the US Securities and Exchange Commission, Canadian issuer Bank of Nova Scotia filed its prospectus. The move could well be a precursor to a dollar benchmark issue, of which there have been only two so far this year.

  • Svenska sets stage for booming September in Samurai

    Svenska Handelsbanken prefaced what is expected to be a busy September for Samurai issuance on Thursday. The issuer drew an oversubscribed book for a five tranche deal, with more deals expected to follow as issuers look to take advantage of a favourable basis swap.

  • Eurozone sovereigns in race to escape escalating Ukraine crisis

    Senior SSA bankers have named the Russia-Ukraine crisis as the one thing that could disrupt the issuance plans of the eurozone’s peripheral sovereigns. As Ukraine on Thursday accused Russia of marching troops into its territory, core eurozone bond yields rallied away from their peripheral cousins leaving market participants hoping that Greece, Portugal and Spain would complete their remaining funding before things got any worse.

  • Imtech launches €600m rights, year after similar rescue deal

    Dutch engineering firm Royal Imtech said on Tuesday that it would cut jobs and launch a €600m rights issue, just over a year after it needed a similarly sized capital increase to rescue the company.

  • Turkey markets Samurai in record yen year

    The Republic of Turkey has mandated four banks and scheduled investor meetings for next week with a view to selling a Samurai bond. The market is on the verge of a record year, with Samurai issuance already almost level with the full year 2013.

  • UBS reopens senior euro market with chunky book

    UBS sold the first euro denominated senior unsecured new issue from a bank since July on Wednesday afternoon, a dual tranche print. The issuer drew in a bumper order book with what bankers away from the deal described as generous new issue premiums before tightening the spreads in to price in line with fair value.

  • Latin bond market ready and waiting for September revival

    Latin American markets once again proved their resilience to events elsewhere in emerging markets as the rally in the LatAm debt maintained momentum, leaving bankers positive that issuers will be able to enjoy welcoming conditions when new issue activity reignites in September.

  • Kanga market to keep hopping after BAML print

    Bank of America Merrill Lynch built on a strong run in Australian dollars on Wednesday, drawing an oversubscribed order book for a 5.5 year print. The strength of demand for the deal — along with other recent deals from FIG issuers in the currency — suggests that appetite from domestic investors for further deals remains robust.

  • Seven-year swap future popularity spikes, Eris says

    Eris exchange has seen increased popularity in its seven-year standard swap futures contract, as firms look for ways to avoid the swap execution facility mandate for packaged trades under Dodd-Frank.

  • CBs to price through swaps if QE comes

    European inflation, as well as expectations of inflation, is continuing to fall, and the European Central Bank is likely to announce a quantitative easing (QE) programme in December, economists told GlobalCapital on Thursday. With core eurozone yields set to tumble ever further, the allocation of real money demand to the currency bloc’s periphery will accelerate and pricing of core covered bonds could become established at sub-Euribor levels.

  • Ghana plans LM exercise alongside new bond

    Ghana is expected to undertake a liability management exercise on its $750m 8.5% 2017s alongside a new Eurobond it is planning for September, said a banker away from the deal.

  • Bankers bay for more as AT1 deals hit screens but warn it will be no cakewalk this time

    The additional tier one deal pipeline may have shuddered back into life earlier than expected this week as two banks announced roadshows following a rally inspired by inspired by dovish comments from European Central Bank president Mario Draghi. But volatility has since set back into the market and looks ready to test the asset class’s hardiness, writes Graham Bippart.

  • US bonds eye big September after UST rally

    The US corporate bond market is set to bound out of bed after its summer slumber next week, as merger and acquisition financings and a slew of deals from opportunistic borrowers stuff what is expected to be a bumper month of issuance.

  • Burgan Bank brings first Kuwaiti tier one perpetual

    Burgan Bank has scheduled investor meetings for the first ever international perpetual tier one bond from a Kuwaiti issuer. The Reg S benchmark dollar bond is being arranged by Citi, HSBC, JP Morgan and National Bank of Abu Dhabi.

  • Volvo nips back with tight €350m FRN

    Volvo was the only corporate borrower to issue a bond in euros last week. On Thursday this week, it sold another one, confounding expectations in some quarters that last week’s €300m tap would be the last of its funding this year.

  • SSAs roar into action in dollars as investors clamour for paper

    The supranational and agency issuers that reopened benchmark issuance in dollars this week enjoyed strong demand as investors starved of supply scrambled to put their cash to work.

  • South Africa gets sukuk ball rolling as flurry of sovereigns expected

    The Republic of South Africa has scheduled investor meetings in September for its debut international sukuk, bringing closer to reality its plans to be among an expected flurry of deals before the end of the year.

  • Revved up auto ABS to welcome new Merc

    Mercedes-Benz Bank has mandated for its first euro denominated auto ABS transaction of the year, with securitization bankers expecting the issuer’s scarcity value relative to other German credits to help drive it towards the tight end of the market. The deal is expected to precede a flurry of European auto ABS in the coming days.

  • Bahrain sets roadshow dates for long dollar bond

    The Kingdom of Bahrain has mandated Citi, Gulf International Bank, Mitsubishi UFJ and Standard Chartered Bank to arrange a long dated benchmark Reg S/144A dollar bond.

  • Volvo makes swift return as tight FRN grows to €350m

    Volvo was the only corporate borrower to issue a bond in euros last week – today, it sold another one, confounding expectations in some quarters that last week’s €300m tap would be the last of its funding this year.

  • NAB attracts LCR bank bid, boosting issuance hopes

    A €500m covered bond tap from National Australia Bank this week attracted unexpectedly vigorous interest from European bank investors on speculation that, despite coming from outside the European Economic Area (EEA), it will be eligible for inclusion in liquidity buffers. The deal will have been closely watched by other non-EEA issuers wanting to take advantage of demand before final regulatory guidelines are published at the end of September.

  • Cap markets drives RBC to share highs

    Record performance in RBC’s capital markets business helped the bank to rack up better than expected profits last week, taking its shares to all time highs.

  • Moves In Brief, August 28, 2014

    Senior levfin banker joins Credit Suisse — DB promotes banker to Chile chief — One in, one out at CIFC board — Covenant covets analyst

  • Loans banks woo Kazakh borrowers, led by Kazakhmys

    Kazakh mining firm Kazakhmys is in talks with banks about refinancing loans. Two other Kazakh companies are also believed to be holding such discussions.

  • Vitol launches $5.5bn revolver after last two deals fly

    Commodity trading company Vitol has launched a global revolving credit facility of about $5.5bn to replace outstanding loans.

  • EIB's project bond enhancement comes to Germany with €429m PP

    Via Solutions Nord has issued a €429m private placement as part of the funding for a €600m extension of the A7 motorway in northern Germany.

  • Spire Healthcare chooses £425m term loan to refinance debt

    Spire Healthcare, the second largest operator in the UK private hospital and clinic sector, has refinanced bank loans due 2015 with a £425m five year term loan maturing in 2019.

  • Bank of Cyprus shareholders approve €1bn rights

    Shareholders in Bank of Cyprus, the country's biggest bank, approved a €1bn capital raise on Thursday.

  • Senior levfin banker joins Credit Suisse

    Credit Suisse has hired a managing director to its EMEA leveraged finance and sponsors group in London.

  • Southeast Asia becomes the go-to place for Taiwanese banks

    Intense competition among domestic banks, restrictions on lending to Chinese borrowers and volatility in the US interbank dollar funding rate were the problems occupying Taiwanese loans bankers at an industry gathering this week. With these issues unlikely to fade anytime soon, Taiwanese lenders need to look further afield for growth, writes Rashmi Kumar.

  • Telefónica to finance potential Brazilian buy with subsidiary rights issue

    Spanish telecoms giant Telefónica sweetened its offer for Brazilian carrier GVT on Thursday, a deal that it said it would finance with a capital increase in Brazil as well as Europe.

  • Deutsche fills gap as German giant parks Clarke in SSA hot seat

    Deutsche Bank has hired a new head of dollar SSA trading to replace Hiren Gudka. It is the latest in a round of moves within the bank’s public sector bond team this year.

  • Big test for Russian loans as Gazprom Neft issues RFP

    Russian oil producer Gazprom Neft has requested proposals for a five year loan, according to three bankers. The deal, which is said to be new and could be in dollars or euros, would be a big test for the loan market in the face of recent EU and US sanctions on Russia and the escalating conflict in eastern Ukraine.

  • HK-Shanghai Stock Connect on track for October launch

    The mutual market access (MMA) equity trading scheme between Hong Kong and the Shanghai Stock Exchange (SSE) is on track to launch in October after a successful two day compatibility test for brokers was completed last weekend. But even though the clock is ticking, there remain questions over how investors will be taxed and Shenzhen is also looking to get in on the act, writes Rev Hui.

  • Burgan Bank brings first Kuwaiti tier one

    Burgan Bank has set investor meetings for the first ever international perpetual tier one bond from Kuwait. The Reg S benchmark dollar bond is being arranged by Citi, HSBC, JP Morgan and National Bank of Abu Dhabi.

  • Taiping set to be first Asian insurer to sell perpetual

    Insurance conglomerate China Taiping kicked off investor meetings on August 28 for a subordinated perpetual offering. If the deal goes ahead, Taiping will be the first Asian insurance company to issue a dollar perpetual hybrid.

  • Bank of China picks banks for debut tier two bond

    Bank of China has held a beauty parade for its inaugural Basel III compliant tier two offering this week and is understood to have mandated three banks for the offering.

  • Santander joins AT1 pipeline as supply fears ease

    Concerns that there would be a dearth of additional tier one (AT1) deals ahead of the European Central Bank’s Asset Quality Review appear to be receding as Santander joins the pipeline, mandating leads for its second euro denominated AT1.

  • Sceptics out in force as HK steps closer to debut sukuk

    Hong Kong took another step towards its long awaited debut sukuk issue on Thursday, announcing roadshow dates for the proposed dollar deal. The transaction is the first step in the financial centre’s bid to establish itself as a regional Islamic financing hub. But scepticism of the plan and its chances of success remains high, write Virginia Furness and Isabella Zhong.

  • Handelsbanken adds to busy year with second ever Samurai

    Svenska Handelsbanken sold its second ever Samurai print on Thursday, drawing a comfortably subscribed order book for a five tranche deal. BNP Paribas is expected to follow the issuer into the yen market next week, helping boost an already strong year for Samurai volumes.

  • Bidders hunt for $500m for XL Axiata tower buy

    Indonesian telecoms tower operator PT Solusi Tunas Pratama (STP), private equity fund Providence Equity Partners and Tower Bersama Group are among bidders which have approached banks for a loan to back the acquisition of some of XL Axiata’s tower assets, according to bankers.

  • South Africa set for September sukuk but pricing expected wider than conventionals

    The Republic of South Africa has set investor meetings in September for its debut international sukuk, solidifying its plans to issue among the flurry of sovereign Islamic notes expected before the end of this year.

  • Objektif picks fixed price for $202m Bumi block

    Bumi Armada’s biggest shareholder, Objektif Bersatu, has raised MR636.4m ($202.1m) by selling a 7% stake in the Malaysian company. Launched on the back of news of an upcoming rights issue, the block came with a fixed price to ensure the final deal size could increase with demand.

  • Fuller's tops up bank facilities, adding £30m with refi

    The brewery, pub and hotel company Fuller, Smith & Turner, famous for its London Pride premium ale, has signed two revolving credit facilities totalling £180m.

  • MCC repeats success with second SBLC-backed issue

    China Metallurgical Group Corporation (MCC) priced its second dollar bond of the year on August 21. The borrower again opted for a standby letter of credit (SBLC) backed three year issue after seeing striking success in its first outing with the structure.

  • Alibaba signs $3bn revolver ahead of IPO

    E-commerce giant Alibaba Group has signed a $3bn revolving facility with four lenders, just days before it starts premarketing its IPO.

  • Yes Bank back for $275m dual currency facility

    India’s Yes Bank is back in the market for a $275m fundraising that is split into one, two and three year portions and offers banks the option of participating in euros or dollars.

  • Xiaomi gets strong signal, 16 join $1bn loan

    The names have emerged of the 16 lenders that have signed up to the $1bn dual tranche loan from mobile phone company Xiaomi ahead of its launch into general syndication next week. Including the three original bookrunners and mandated lead arrangers, the total number of banks at the top level could swell to 20 as one more lender processes its approval.

  • Mercedes-Benz brings scarcity value to revved up auto mart

    Mercedes-Benz Bank has mandated banks for its first euro denominated auto ABS transaction of the year, with securitization bankers expecting the issuer’s scarcity value relative to other German credits to help drive it towards the tight end of the market. The deal is expected to lead precede a raft of European auto ABS to be announced in the coming days.

  • LIG Nex1 turns on the IPO radar with mandates for two

    Korean arms manufacturer LIG Nex1 has hired two banks to work on an IPO that could be worth W500bn ($490m), according to a banker close to the deal.

  • HY scarcity drives demand to Yingde $250m

    Yingde Gases Investment took advantage of strong technical demand for Asian high yield to price a deal capped at $250m on August 21. Scarcity value — both in terms of size and sector — also buoyed investor support for the bond, which was 10 times subscribed.

  • A good old fashioned challenge

    Having had more than my fair share of successes in life, I’m always one for giving back to society. But when a chum recently challenged me to dump a bucket of iced water over my head in the name of charity, I wasn’t so sure.

  • Singapore investors happy to go long for CapitaLand

    CapitaLand made a return to the capital markets on August 21, pricing a S$500m ($400m) 10 year bond. The deal is the largest single tranche Singapore dollar corporate bond this year and wraps up a busy couple of weeks for that market.

  • China Orient makes stellar return to dollars

    China Orient Asset Management made a blockbuster return to the dollar market on August 27, attracting $10bn of bids for its dual tranche issue. The enthusiastic investor response is a reflection of the progress that China’s toxic asset management sector has made in G3 bond markets since China Orient brought the sector’s first offering in September 2013.

  • China Oceanwide seeks HK$3bn for acquisition

    China Oceanwide Holdings Group is seeking a HK$3bn ($387m) bridge loan to back its acquisition of Hutchison Harbour Ring from Hutchison Whampoa. The process may take a while to wind up as the borrower is privately owned, said bankers.

  • Debut Formosas from BoC and CCB Taipei branches

    Bank of China (BoC) Taipei Branch and China Construction Bank (CCB) Taipei Branch each priced Rmb2bn ($325m) multi-tranche Formosa bonds in the week of August 25, according to three bankers close to the deals. Both banks have previously sold Formosa bonds, but this is the first time they have done so through their Taiwan branches.

  • PGN wraps up $650m club with eight

    Perusahaan Gas Negara has wrapped up its $650m club loan with eight banks. Allocations for the deal’s onshore tranche stood at $590m, while those for the offshore tranche were $60m.

  • StormHarbour confident of success whatever the weather

    So often boutiques provides shelter for senior bankers during the downturn, only to see them lured back when bulge bracket firms resume their expansion in an upward cycle. Can Stormharbour prove the exception and keep its key staff onboard? David Rothnie investigates.

  • Grisdale takes charge of commercial banking at HSBC

    HSBC has promoted Andy Grisdale to chief of staff for commercial banking in Asia Pacific, with Mahbub Rahman moving into his old role as head of commercial banking HSBC Malaysia.

  • Country Garden to refinance debt with $410m rights issue

    Chinese real estate developer Country Garden Holdings is looking to raise HK$3.18bn ($410m) from a one for 15 rights issue that is slated to hit the market in late September.

  • SME lending down despite mortgage-free FLS

    The UK government’s Funding for Lending (FLS) scheme has turned in another set of disappointing net lending figures for small and medium sized enterprises in the second quarter of this year, Bank of England figures showed on Thursday. That is despite Q2 being the first full quarter since the central bank revamped the scheme to discount mortgage lending in a bid to focus more heavily on businesses.

  • Hedge funds hold back from signing up to ISDA protocol

    Hedge funds are holding back from signing up to the International Swaps and Derivatives Association protocol, which will automatically upgrade existing derivatives transactions between two signing counterparties to the new 2014 credit definitions. The funds want to wait and see how liquidity compares after the new contracts are released on Sept. 22.

  • Max’s Group to finalise backdoor listing into Pancake House

    One of the Philippines’ largest dining operators, Pancake House, has received the approval from its board of directors to undergo a follow-on of around 300m shares as the final pieces of its merger with Max’s Group of Companies is finally coming together.

  • LatAm rallying ahead of September reopening

    Only three LatAm borrowers have been tempted into the bond market so far in August but all indicators suggest that the conditions issuers enjoyed before the summer break will be at least as welcoming in September, when issuance is expected to reignite.

  • REC opens $170m greenshoe into syndication

    Indian company Rural Electrification Corp has launched into general syndication the $170m greenshoe portion of its five year loan. The funds for the original $230m have already been provided by the six bookrunners and mandated lead arrangers and the $170m greenshoe is being syndicated on a best efforts basis.

  • Insurance firms enter hybrid equity puts as rates hedge

    Insurance firms have been entering six-to-18 month hybrid out-the money S&P 500 equity 90-to-95% put options over the last month that execute should rates rise.

  • UBS lists tracker on US hedge fund index

    UBS listed Tuesday on the Frankfurt and Stuttgart stock exchanges a new tracker certificate that uses a Solactive hedge fund index as the underlying.

  • California Republic preps third prime auto deal of year

    California Republic Bank announced plans to tap the US ABS market for the third time this year, with a $275m issue backed by prime auto receivables. The deal comes amid growing regulatory scrutiny of the auto lending sector, focused primarily on subprime.

  • Public deals could go private to escape Reg AB II rules

    Issuers of securitized debt could be encouraged to sell their deals as private placements rather than public transactions, in order to avoid onerous collateral disclosure and execution rules approved by the US Securities and Exchange Commission on Wednesday.

  • Up-and-coming CLO shop adds analyst

    A new North Carolina-based CLO manager is continuing to build up its small team, adding another analyst with the eventual aim of run high-diversity portfolios.

  • CFTC fines Merrill Lynch $1.2 million for supervision failures

    The US Commodity Futures Trading Commission has issued an order filing and settling charges against broker-dealer Merrill Lynch for allegedly failing to diligently supervise its officers', employees', and agents' processing of futures exchange and clearing fees charged to its customers. The Commission’s order requires the firm pays a $1.2mn civil monetary penalty.

  • Europe’s bond market soon to fizz as corporate M&A sparks deals

    Mergers and acquisitions are set to be an important driver of corporate bond issuance this autumn, as deal mandates start to build up.

  • Liability concerns put buysiders off delegated trade reporting

    Buyside firms are taking responsibility for reporting of collateral and valuations in-house, voicing fears that delegating reporting of such data creates liability concerns.

  • Spanish water utility seeks €200m debut

    Aigües de Barcelona, which provides water and sewerage services to the Catalonian capital, has mandated Credit Suisse and local firm Trea Capital Partners for a possible €200m bond.

  • Aker Solutions secures post-split finance

    Oslo-based oilfield engineering company Aker Solutions has signed loan agreements worth €1.042bn which will come into effect once its split into two separate companies is complete.

  • Investors get comfy with OSIM S$170m convertible

    OSIM International has issued the first convertible bond from Singapore in 12 months in what has been a sparse year for issuance out of southeast Asia. That rarity value, combined with the strong performance of the borrower’s previous CB, generated strong demand that allowed the borrower to increase the deal size to S$170m ($136m). But the borrower still preferred quality over volume.

  • Douglas Holding a lone figure in August's levloan market

    The European leveraged loan market might be all but dead in this fourth week of August, but one German borrower is pressing on with a transaction to cut the margins on its existing debt.

  • Trio of countries drags down European consumer ABS ratios

    Deteriorating performance of Italian transactions was the main reason for a recent jump in delinquency rates on consumer loan asset-backed securities in Europe, a Moody’s report revealed on Wednesday. France and Spain are also contributing to the worsening figures.

  • CBA heads for increase as MBS orders top A$2.5bn

    Commonwealth Bank of Australia may print more than the A$1bn original size indicated for its Medallion Trust Series 2014-2 RMBS transaction after having the deal covered more than twice over by Wednesday morning London time.

  • OCI plots engineering spin-off, potential move back to Egypt

    Dutch fertiliser firm OCI is set to spin off its engineering and construction group through an IPO that could take place before the end of the year.

  • Garuda takes financing flight to the Gulf

    Indonesian national airline carrier Garuda, has signed a three year $200m financing facility with Gulf banks. The syndication includes an $85m Islamic tranche, according to a banker on the deal.

  • CEEMEA September pipeline starts to flow

    The list of CEEMEA bonds expected to be priced in September is finally starting to sprout. Two sovereign borrowers are leading the charge, one with a new bond and a liability management exercise, and the other looking to tap Asian demand.

  • Ghana LM exercise planned alongside bond

    Ghana is expected to undertake a liability management exercise on its $750m 8.5% 2017s alongside the new Eurobond it is planning for September, said a banker away from the deal.

  • Atlas Mara rejoins LSE after acquisitions

    Bob Diamond’s Atlas Mara Co-Nvest, the vehicle founded to invest in African financial institutions, rejoined the London Stock Exchange on Wednesday morning.

  • UBS draws hefty book on juicy premiums

    UBS is set to sell the first euro denominated senior unsecured new issue from a bank since July on Wednesday afternoon. Generous new issue premiums are likely to lure in plenty of interest for the bank’s two and seven year bonds, according to syndicate managers away from the deal.

  • It’s alive! SSA sector back in benchmark business

    The sovereign, supranational and agency sector shot out of its summer snooze on Wednesday, as the first benchmark sized deals in more than three weeks drew bulging books and bankers tipped more mandates to hit screens later in the day. Investors with cash to put to work, a lower level of upcoming SSA supply than the last few years and unexpectedly dovish comments by the European Central Bank president late last week were all contributing to a heavily bid market, said SSA bankers.

  • BAML print fails to dent Kanga demand

    Bank of America Merrill Lynch built on a strong run in Australian dollars on Wednesday, drawing an oversubscribed order book for a five and a half year print. The strength of demand for the deal — along with other recent deals from FIG issuers in the currency — suggests that appetite from domestic investors for further deals remains robust.

  • Sub mart set to reopen with UniCredit, Swiss Re

    Swiss Re and UniCredit are looking to be the first out of the door in the post-summer subordinated debt market, taking advantage of the recent rally in credit after European Central Bank president Mario Draghi’s comments earlier in the week gave investors confidence that the bank would enhance its measures to boost weak eurozone inflation.

  • BMW races ahead of the pack as M&A boosts bond hopes

    BMW left rival borrowers standing in its wake with a prompt dual tranche bond issue yesterday that raised €1.75bn from a €5bn book, showing that Europe’s corporate bond market is wide open for business.

  • Zhu joins Deutsche’s North Asia loans syndication

    Deutsche Bank has appointed David Zhu as head of North Asia loans syndication. The appointment took effect on August 25.

  • Draghi comments give FIG issuers the green light

    The geopolitical concerns that weighed on market sentiment in July and August seemed almost to have evaporated after European Central Bank president Mario Draghi on Monday said the regulator would use “all the available instruments” to rejuvenate the Eurozone recovery.

  • Stellar second round for China Orient

    China Orient Asset Management made a blockbuster return to the dollar market on Wednesday, attracting $10bn in bids for its dual tranche issue. The enthusiastic investor response is a reflection of the progress that China’s toxic asset management sector has made in G3 bond markets since when China Orient brought out the sector’s first offering in September 2013.

  • FCA says 1.2% of RBS mortgage advice was sound

    The Financial Conduct Authority has fined Royal Bank of Scotland just under £15m for “serious failings” in its advised mortgage sales business, saying that only 2 of the 164 sales reviewed were considered to meet the regulator’s standard.

  • Netting could give France an RMB clearing edge, says Crédit Agricole

    France, the European country that is expected to be next in line to be granted its own offshore renminbi clearing bank, is targeting a broader RMB clearing house structure. If the eventual choice of system involves a netting approach similar to that used in Hong Kong, it could give France a distinct advantage, according to Francois-Xavier Thomas, senior business developer of client coverage and international network at Crédit Agricole.

  • China Taiping meets investors for perp

    Insurance conglomerate China Taiping is meeting investors this week for a subordinated perpetual offering. If the deal goes ahead, Taiping will be the first ever Asian insurance company to issue a dollar perpetual hybrid.

  • Shareholder launches block as Bumi Armada fixes rights price

    Malaysia’s Bumi Armada set the price for its upcoming rights issue on Wednesday, though a date for the transaction is still up in the air. In response, the company’s largest shareholder launched a block deal in order to fund its take up of the right issue.

  • Debut Formosas from BoC and CCB Taipei branches

    Bank of China (BoC) Taipei Branch and China Construction Bank (CCB) Taipae Branch have each priced Rmb2bn ($325m) multi-tranche Formosa bonds this week, according to three bankers close to the deals. Both banks have previously sold Formosa bonds, but this is the first time they have done so through their Taiwan branches.

  • Indian GDRs no longer make a splash

    The ice bucket challenge has been all the rage on social media recently, but Indian GDR issuers have been taking a cold shower for quite a while longer, writes Philippe Espinasse.

  • Brazil’s GOL flies back to LM

    Brazilian low cost airline GOL announced its second tender of the quarter on Tuesday as it aims to buy back dollar bonds maturing in 2017, 2020 and 2023.

  • Link Reit prices as Asian investors return from break

    Asia’s largest real estate investment trust Link Reit priced its debut $500m international bond on Tuesday and came flat to through its rivals’ curves. With Asian investors back at their desks, bankers had no concerns about August illiquidity and pushed ahead with the trade.

  • DB Chile cap markets boss gains country head responsibilities

    Deutsche Bank has appointed Andrés de Goyeneche, head of capital markets and treasury solutions for Chile, as chief country officer for the South American nation, replacing Manuel Irarrazabal.

  • Ally retains two classes of non-prime auto ABS

    Ally Financial priced its $750m non-prime auto ABS on Tuesday afternoon, with all tranches oversubscribed save two subordinated classes, which were retained.

  • Venture debt backed ABS face Moody’s downgrades

    Asset backed securities issued by firms that lend to venture capital backed tech start-ups could be downgraded by up to two notches if Moody’s changes its ratings approach to include its default correlation framework.

  • BMW pockets €1.75bn with minute coupons after rate rally

    BMW reopened the European benchmark investment grade corporate bond new issue market today with a punchy €1.75bn deal that proved one thing and suggested another. The market is fully open for business after the summer – that is certain. And the signs are that spreads – and especially yields – for corporate issuers are set for a very tight autumn.

  • Demand for euro options spikes post-Jackson-Hole

    Investors have increasingly been buying options on the euro against both the dollar and sterling, as market participants expect further volatility to occur in the single currency following comments from European Central Bank president Mario Draghi at last week’s annual symposium in Jackson Hole.

  • Vol funds enter OTM calls on forward variance swaps

    Volatility arbitrage hedge funds were seen last week buying far out-the-money November 2014 and March 2015 calls on realized S&P 500 forward variance swaps.

  • SG sees Japan buyback outperformance interest

    Société Générale is seeing interest among macro hedge funds for outperformance options that pit a newly created Japan buyback index against the Topix Total Return Index.

  • Speyside bond pays premium for size and lack of rating

    Barclays priced Speyside Renewable Energy's £48m project bond on August 21, placing it with a handful of UK investors. The deal's minuscule size and lack of ratings meant it had a limited audience, but the bond carried some spread to compensate.

  • One in, one out at CIFC board

    CIFC Asset Management, one of the most active CLO managers in the US, has appointed a former Ares Management senior partner to its board of directors. Another CIFC board member has resigned.

  • Africa is no quick fix for dearth of Russian loans

    The international Russian syndicated loan market is in dreadful shape, as relations between Russia and the West plumb new depths. Lending banks are trying to reorient their personnel and capital to other regions. Africa and the Middle East are natural places to turn. But while they could well be promising areas of growth for the future, banks should be wary of jumping for quick fixes.

  • BES spreads fund caution on peripheral banks ahead of AQR

    Fund managers are taking long positions on peripheral banks cautiously, expecting an imminent European balance sheet review to reveal further inconsistencies similar to those at Banco Espirito Santo, which resulted in the Portuguese government splitting the bank.

  • CDS notional continues decline by 27%

    Overall credit default swap notional that was reported to swap data repositories last week decreased by 27% from the previous week, according to data from the International Swaps and Derivatives Association. This follows a decrease of 30% from the week prior. Overall interest rates derivatives trading that was reported, also declined by 13%.

  • Imtech launches repeat rights amid turnaround plan

    Dutch engineering firm Royal Imtech said on Tuesday that it would cut jobs and launch a €600m rights issue, just over a year after it ran a similarly sized capital increase to rescue the company.

  • Belgian window maker launches cap hike for Turkish buy

    Belgian PVC window maker Deceuninck is to raise €50m through a capital increase that will fund its purchase of a Turkish peer.

  • First HY inflows for weeks reassure levfin bankers in Europe

    Bankers have welcomed a revival in investor appetite for high yield bonds, after inflows to high yield funds in Europe resumed last week, raising hopes of a more supportive market for issuers in September.

  • Don't ignore Sing dollars once the summer lull is over

    While the rest of Asia’s markets have been taking their summer breaks, Singapore dollars have been revving up. Recent deals have shown that the market can offer a strong alternative, with bigger sizes and longer tenors than dim sum — and even the opportunity to price through the dollar curve.

  • Australia’s Transurban hits road in Europe

    Transurban, a Melbourne based toll road developer and manager, will start a four day roadshow in London and Europe on Monday for a potential euro bond.

  • Turkey sets investor meetings for Samurai as bankers expect record yen year

    The Republic of Turkey has mandated four banks and set investor meeting for the start of September with a view to selling a Samurai bond. Bankers said that this year could be a record for this kind of note as volumes are almost level with the full year 2013.

  • Turkish security co signs $100m loan with EBRD and ING

    Pronet, a Turkish security alarms provider, has signed a $100m five-year loan with ING and the European Bank for Reconstruction and Development (EBRD).

  • BAML Kanga appeals to cash rich Australian investors

    Bank of America Merrill Lynch is set to sell its first Kangaroo print of 2014 on Wednesday, drawing a hefty order book for a dual tranche 5-1/2 year deal. A lack of supply in Australian dollars so far in 2014 — with many issuers favouring euros — has left Australian investors thirsty for supply from international banks.

  • European RMB payments double in a year, says Swift

    This year's flurry of offshore renminbi clearing bank designations in Europe appears to be reaping a harvest in promoting RMB usage, according to the latest payments data from the Society for Worldwide Interbank Financial Telecommunication (Swift), released on August 26.

  • Record capital markets results helps RBC to success

    Record performance in RBC’s capital markets business helped the bank to a better than expected profit last week, taking its shares to all time highs.

  • AT1 investors are naked. Give them some CDS

    The inchoate additional tier one asset class is highly complex and comes with many risks, and recent volatility shows it may also be prone to panic attacks. One way to help ensure it remains liquid, correctly priced and, most importantly, as stable as possible is to give investors the ability to accurately hedge their AT1 investments. But that doesn't seem likely any time soon.

  • Tax and ownership questions muddle HK-Shanghai Stock Connect

    The mutual market access (MMA) equity trading scheme between Hong Kong Stock Exchange (HKEx) and the Shanghai Stock Exchange is looking well on schedule for an October launch following the successful completion of a two-day compatibility test on August 23-24. But in order for the scheme to work to its full potential, several outstanding issues need to be resolved, market observers warned.

  • UK mortgages down as lenders eye RMBS

    Restrictions on UK mortgage lending introduced in April are having a cooling effect on the housing market, according to figures from the British Banking Association. But with mortgage approvals still up 12% year-on-year, UK lenders — including a potential debut issuer — will have plenty of assets to hand for an anticipated return to RMBS next month.

  • GDH out with $200m dual currency loan

    Chinese state-owned company GDH has launched a $200m dual tranche loan into general syndication.

  • Weak Russian beer not getting any better

    A shocking email for anyone planning a work jolly to Moscow landed in the Blog inbox last week, revealing: “Russian beer weakness to continue.”

  • CBA to set latest benchmark for Aussie RMBS

    Commonwealth Bank of Australia has mandated banks for its second Medallion Trust RMBS of the year, setting price guidance for the senior notes 10bp inside the corresponding level achieved on its first deal in February, as RMBS funding continues to cheapen for Australian banks.

  • Time is ripe for PNG to issue sovereign bond: ANZ

    A dollar denominated sovereign bond could be a viable way for the government of Papua New Guinea (PNG) to get around growing constraints on its ability to finance deficit spending, according to ANZ. And declining yields over recent years for similarly rated sovereigns mean PNG should be able to issue at attractive rates.

  • It's great to be back... or is it?

    Returning from holiday is a curious experience. The length and restfulness of the time away are often proportional to the mounting dread that infuses one’s thoughts of the first day back at the desk.

  • HSBC’s Bosrock picked to lead S&P Asia Pacific

    Standard & Poor’s has appointed Matthew Bosrock as executive managing director, head of Asia Pacific (ex-Japan). He succeeds Dominic Crawley, who returns to the UK to resume his role as global head of S&P’s financial services, sovereign and international public finance practices.

  • Indosat to club or go bilateral for $500m loan

    Telecommunications company Indosat, which had issued a request for proposals to banks in July, is likely to either club its fundraising or secure the funds via a series of bilaterals. It could also go for a combination of the two.

  • India mandates five for jumbo ONGC divestment

    India looks set to add as much as Rp180bn ($2.97bn) to its coffers after mandating five banks to arrange a 5% stake sale in the country’s second largest listed entity – Oil and Natural Gas Corporation (ONGC).

  • Grisdale moves up the commercial banking ladder at HSBC

    HSBC has promoted Andy Grisdale to chief of staff for commercial banking in Asia Pacific with Mahbub Rahman moving into his old role as head of commercial banking HSBC Malaysia.

  • China Oceanwide hunts for HK$3bn acquisition bridge

    China Oceanwide Holdings Group has approached banks for a HK$3bn ($387m) bridge loan to support its acquisition of Hutchison Harbour Ring from Hutchison Whampoa. The process may take a while to wind up as the borrower is privately owned, said bankers.

  • China Orient returns to dollars with dual trancher

    China Orient Asset Management is back in the dollar market, offering a dual tranche five year and ten year deal on Tuesday to build out its curve in the currency. The borrower became the first of China’s big four bad debt managers to tap the G3 market when it printed a three year dollar bond in September 2013.

  • LIG Nex1 picks two for $490m IPO

    Korean arms manufacturer LIG Nex1 has hired two banks to work on an IPO that could be worth W500bn ($490m), according to a banker close to the deal.

  • Link Reit out with debut dollar bond

    Asia’s largest real estate investment trust Link Reit has opened guidance on its debut dollar bond. The borrower has been active in the Hong Kong dollar private placement market but has never before tapped the dollar market.

  • Alsacia bondholders extend forbearance period

    Analysts are speculating that Chilean bus operator Alsacia’s negotiations with government and bondholders has hit a stumbling block. The company has, however, successfully extended the forbearance period from August 22 to August 29, allowing it to avoid falling into default.

  • Investors target short-dated S&P puts

    Investors are shifting to short-dated September or October puts on the S&P 500, targeting strikes between 1,900 and 1,800.

  • Ally set to follow AmeriCredit with wider pricing

    Guidance on Ally Financial’s latest non-prime auto loan securitization is up to 25bp wider than where its last deal from the same shelf priced. The deal comes after AmeriCredit paid up last week for its latest subprime auto ABS, amid increased regulatory scrutiny of the auto lending sector.

  • Risk retention on horizon after Reg AB II vote

    The Securities and Exchange Commission is holding a meeting this Wednesday to vote on amendements to Regulation AB II, which could force issuers of securitized debt to disclose more loan-level data about the collateral backing their deals. Once done with Reg AB II, regulators are likely to turn their attention to risk retention rules.

  • Investors take profit on long dollar/yen trades

    Some market participants have been unwinding long options positions on the dollar against the yen in a bid to take profit as the Japanese unit has steadily weakened against the greenback. At the end of last month, $/¥ was trading at 101.36. On Monday, spot on the pair was 104.28.

  • KDB close to mandating for SEC registered dollar bond

    Korea Development Bank (KDB) has drawn up a preliminary list of mandated banks for a proposed SEC registered dollar offering that could arrive in September.

  • MOL sounding investors out for Malaysia’s first US IPO

    Southeast Asia’s largest e-payment company, MOL Global, started the premarketing process for a $300m Nasdaq IPO on August 25 as it looks to become the first Malaysian firm to list in the US.

  • Game on as Devsisters prepares for $132m IPO

    South Korean mobile game developer Devsisters Corp has filed a preliminary prospectus for a W135bn ($132m) IPO, with bookbuilding set to open in the third week of September.

  • Otto Marine mulls subsea unit spin-off

    Singapore-based Otto Marine, a company that owns and operates offshore support vehicles, is considering listing its subsea division on the city-state’s stock exchange in a bid to improve its competitiveness.

  • PGN $650m club gets three more

    Three more lenders have joined the $650m club loan for Indonesian gas distribution company Perusahaan Gas Negara (PGN). Allocations for the fundraising are likely to be issued by this week, said bankers.

  • Banks working on $500m loan for XL Axiata tower auction

    Indonesian telecom tower operator PT Solusi Tunas Pratama Tbk (STP), private equity fund Providence Equity Partners and Tower Bersama Group are among bidders sounding out lenders for a loan to back the acquisition of some of XL Axiata’s tower assets, according to bankers.

  • Deutsche and Monroe break ground with 50% originator CLO

    Deutsche Bank and middle-market lender Monroe Capital have priced the first US collateralised loan obligation to use a 50% originator structure in order to comply with European risk retention rules, beating JP Morgan and Black Diamond to the punch and enabling a large European institutional investor to buy a big chunk of the senior tranche.

  • Euronext hires post-trade chief

    Andrew Simpson, ex-coo at Rate Validation Services, has been appointed head of post-trade at Euronext as the exchange operator makes a push to expand its post-trade services following a demerger with parent company IntercontinentalExchange earlier this year. Simpson will be responsible for developing Euronext’s relationship with LCH.Clearnet and its clearing strategy for both cash and derivatives markets.

  • Origin to bring new euro hybrid after sticking by old deals

    Origin Energy has named Barclays, Goldman Sachs and UBS as lead banks in preparation for a five day roadshow across Europe and Asia for a possible hybrid capital issue.

  • LSE launches rights for Russell at tight discount

    London Stock Exchange launched a £938m rights issue on Friday that will fund its previously announced acquisition of index services firm Frank Russell Company. The deal came alongside the LSE's results, which showed surging profits on the back of record IPO volumes.

  • Well covered AYR Issuer another victory for struggling CMBS product

    Avenue Capital’s AYR Issuer student housing CMBS priced on Thursday was another sign that there is enough appetite for the product to make it viable for a wide range of assets. But bankers are frustrated with the lack of translation from rumour into fact in the European public market.

  • India's Yes Bank due to launch $275m triple tranche loan

    India’s Yes Bank is expected to launch its $275m fundraising that is split into one, two and three year portions and is available to banks for participation in two currencies, later Friday.

  • Fair value for Chinese AT1 at 7%-8%: Morgan Stanley

    The base case fair value yield to call for Basel III compliant additional tier one (AT1) instruments from China’s mega banks should be between 7% and 8%, according to Morgan Stanley.

  • Amvig launches HK$2.6bn into general

    Cigarette package printer Amvig Holdings has launched its HK$2.6bn ($335m) refinancing into general syndication after sealing the senior phase with five lenders.

  • Scarcity drives demand to Yingde $250m

    Yingde Gases Investment took advantage of strong technical demand for Asian high yield to price a deal capped at $250m on Thursday. Scarcity value – both in terms of size and sector – also buoyed investor support for the bond which had an order book 10 times subscribed.

  • UK wage stagnation threatens RMBS performance

    Mark Carney, the Bank of England's governor, and his fellow Monetary Policy Committee members are not the only ones who should be worried about meagre wage growth in the UK, according to Standard & Poor’s, which has warned stagnant wages could translate into poorer RMBS performance in the next few quarters.

  • Shengjing aims big with $1bn HK IPO

    China’s Shengjing Bank is looking to list in Hong Kong, in an IPO that could raise as much as $1bn, according to a banker.

  • CapitaLand goes long and deep in Singapore

    CapitaLand made a return to the capital markets on Thursday and priced a S$500m ($400m) 10 year. The bond is the largest single tranche Singapore dollar corporate bond this year and wraps up a busy couple of weeks for that market.

  • MCC repeats success with second SBLC deal

    China Metallurgical Group Corporation (MCC) priced its second dollar bond of the year on Thursday. The borrower again opted for a standby letter of credit (SBLC) backed three year issue after striking success in its first outing with the structure.

  • GVK to roadshow $247m QIP in September

    India’s GVK Power & Infrastructure is expected to meet investors in the first week of September, ahead of launching a qualified institutional placement to raise up to Rp15bn ($247m).

  • RMB round-up: August 22, 2014

    In this round-up, the People’s Bank of China renewed a currency swap agreement for Rmb15bn ($2.4bn) with the Bank of Mongolia, Macau RMB deposits reached Rmb128.9bn in June while monthly cross border RMB trade fell 21%, Taiwan RMB monthly deposits inch up 0.1% and Singapore confirmed it will join the Asian Infrastructure Investment Bank as one of the founding members.

  • CMB Leasing nets $295m from 14

    CMB Financial Leasing, a subsidiary of China Merchants Bank, has netted a loan of $295m, nearly double its target of $150m, as 14 lenders came into the deal. It saw a good response from Taiwanese banks, which were drawn to the comfortable three year tenor and generous all-ins.

  • Stock Connect Rmb500bn quota will be filled within six months, say CLSA and CITICS

    The mutual market access (MMA) equity trading scheme that is expected to launch in October, also known as the Hong Kong-Shanghai Stock Connect and the Through Train, is likely to catalyse financial reform in the areas of RMB internationalisation and capital account opening, according to a report published on August 19 by CLSA and CITIC Securities (CITICS).

  • PIMCO only holdout on Japan bonds in Argentine CDS auction

    PIMCO potentially sought to limit the amount it needed to pay from its credit default swaps on Argentine bonds when it voted against including two Japanese law-restructured notes from being included in the upcoming CDS auction, according to market officials.

  • Impact of leveraged lending guidance on CLOs uncertain

    New leveraged lending guidelines issued by US regulators could change the make-up and risks of CLO portfolios, as non-traditional lenders move into the market to make up for lower lending volumes from more highly regulated banks, according to Moody's.

  • Loan bankers scramble to fill void left by failing Russia

    Loan bankers have every reason to be getting twitchy. Any lingering hopes of Russian deals getting a reprieve were finally extinguished this week as fighting continued in Ukraine and tensions with Russia escalated, writes Dan Alderson.

  • Buyside wrestles with OTC derivatives valuation

    Buyside participants, in particular insurance firms and pension schemes, have not adequately invested in risk management infrastructure and are not pricing their derivatives exposures or collateral charges effectively in light of new rules and accounting standards.

  • Argentina proposal expected to alienate

    In a week in which the last South American nation to default on international debt notched up another upgrade, analysts said that Argentina — 13 years after its default — was further from international markets than at any point in recent months.

  • Chinese RMBS needs more investors after ‘milestone’

    Moody’s has called the first Chinese RMBS since the financial crisis, printed by Postal Savings Bank of China last month, a milestone for the market but warned that disclosure levels must be maintained to draw the breadth of investor base necessary to make transactions economic for originators.

  • Covered bonds set to perform, but beware the Fed

    Covered bonds are expected to tighten, as the fall in Bund yields and expectations of lower supply boost sentiment.

  • Dortmund gets Puma, Evonik support for rights

    Borussia Dortmund, the top flight German football team, is set to raise €114m through a rights issue that has already gained the support of the club’s three major sponsors.

  • Hot demand for SSA callables as World Bank turns green

    World Bank sold a callable green bond to US retail investors this week as part of an effort to increase its presence in the US market. The structured print comes at a time of strong demand for callable notes from supranational and agency issuers, according to MTN dealers.

  • Slim pickings in snoozy August US markets

    The US corporate bond market all but closed this week as issuance of investment grade transactions dwindled further and high yield deal flow ceased altogether.

  • After strong first half, dividend recaps set to wane

    One of the main sources of primary issuance in the European leveraged loan and high yield bond market so far this year may be set to take a hit, as bankers have expressed concerns over sponsors’ ability to achieve aggressive dividend recaps following investor push back in late July.

  • Euro barriers taken out post-FOMC fuelling further options trading

    Investors have been selling puts on the euro against the dollar in a bid to take profit on any downside options they still hold, following a further decline in spot on the currency pair after somewhat hawkish Federal Open Market Committee meeting minutes were released on Wednesday.

  • Niche takes centre stage as price trumps size for SSAs

    Kangaroos and Kauris — not dollars and euros — could grab the attention of supranational agencies in the coming months, with price rather than prodigious volumes likely to be the issuers’ focus as they flirt with near-completed funding targets. Jonathan Breen and Nathan Collins report.

  • Yapi Kredi and Isbank line up Sept signings

    With Akbank having led the year’s second wave of Turkish bank refinancings last week, peers Yapi Kredi and Isbank are expected to follow suit in the second or third week of September, say bankers. Finansbank is looking to refinance a one year syndicated loan that matures in November.

  • Extendible Danish and Dutch bonds price flat to bullets

    Extension risk is no longer a factor in the pricing of covered bonds. Deals auctioned this week in Denmark priced flat to existing bullet maturity deals, while last week ING received regulatory approval for a new soft bullet covered bond programme that issues bonds with extension risk. ING expects to sell these at the same level as its existing hard bullet deals.

  • Equity capital markets, news in brief — August 22, 2014

    QBE — Moy Park

  • What the stress tests don’t tell us

    Until you look closely, stress testing sounds great. With the abject failures of the 2011 stress tests fresh in their minds (Dexia has been bailed out twice since passing the test with a 10% capital ratio), the European Banking Authority stress testing teams, and those of national regulators, will pull out all the stops to make the 2014 tests credible.

  • Alpha takes on capital worries, doesn’t deny deals to come

    Greece's Alpha Bank has responded to speculation on its capital needs, not rejecting rumours that it may have to issue more capital but asking the investors to wait.

  • Dubai lender influx sees borrowers get tough on pricing

    Dubai dominated in emerging market loans this week, with big-name borrowers taking advantage of bankers’ woes elsewhere to push for tighter repricing of their existing deals.

  • Polish coal miner JSW mandates two banks for bond

    Jastrzębska Spółka Węglowa, the European Union's largest coking coal miner, has mandated Credit Suisse and JP Morgan to arrange a Eurobond.

  • Green Investment Bank joins innovative project financing

    The UK’s Green Investment Bank has joined Bayerische Landesbank and Sumitomo Mitsui Banking Corporation in providing £192m for the first project-financed municipal gasification plant in the UK.

  • Helaba taps into summer, hits €3.25bn for the year

    Landesbank Hessen-Thüringen (Helaba) tapped the three year leg of its dual tranche issue from May on Thursday morning, mirroring the syndication strategy it used to tap the deal’s seven year leg in July — aggressive pricing and doubling the size of the issue.

  • Leveraged loans - news in brief, August 22, 2014

    Big Yellow Group - Amtek - Faster

  • Wendel continues Materis sell-offs and opens negotiations for Chryso

    French investment firm Wendel will sell another subsidiary of Materis, the French admixture producer for concrete and cement, in a deal valued at €290m.

  • ISDA publishes credit derivatives definitions protocol

    The International Swaps and Derivatives Association has published the 2014 credit derivatives definitions protocol, kicking off an adherence process for counterparties to derivatives trades that will end on September 12, 10 days before trading on the new definitions is scheduled to begin.

  • Local investors flock to Wells and UBS’s Aussies

    UBS and Wells Fargo were rewarded for taking to a supply hungry Australian dollar market this week. Both issuers — particularly UBS — are rare names in the currency which, combined with strong name recognition among domestic investors, propelled their trades to success.

  • CS, Deutsche taps swell to benchmark sizes amid scarcity

    Credit Suisse and Deutsche Bank each tested the depth of the senior unsecured primary market this week with taps of existing bonds, with both finding enough demand to increase their respective deal sizes to benchmark size.

  • Pipeline builds as wider euro CLOs pull in buyers

    CLO investors told GlobalCapital this week that a recent widening in European CLOs has represented a buying opportunity, as they expect spreads to track inwards again once the next clutch of euro-denominated deals emerge into the primary market.

  • Credit Suisse EUR500m 1.375% Nov 19 tap

  • People Moves in Brief

    UBS hires for FIG DCM - Hentschel quits SocGen - First Gulf poaches Aissaoui - Saini departs Morgan Stanley - Karwelies joins UBS from BAML

  • Deutsche Bank EUR700m FRN Apr 19 tap

  • CMBS reawakened as BAML sells Coeur Défense debt

    European CMBS supply rose unexpectedly this week as Bank of America Merrill Lynch privately placed €410m of securities backed by debt used by Lone Star to purchase the Coeur Défense office complex in Paris. Elsewhere, Avenue Capital quickly executed its £107.3m AYR Issuer student housing CMBS.

  • French surge helps home banks’ charge in equity-linked

    It has been the busiest period year so far for equity-linked issuance since 2009 but many of the market’s biggest players have been muscled out because of the unusual geographic skew of the deals.

  • Regulators call for removal of barriers to trade reporting

    Global financial regulators have questioned the effectiveness of data protection and state secrecy laws in relation to trade reporting of over-the-counter derivatives.

  • Brazil targets foreign investors in new covered bond law

    Brazil's finance ministry has told GlobalCapital that it will publish proposals for a covered bond legal framework next week. The proposals are a part of an overall package that aims to free up the flow of credit and was presented by the minister of finance, Guido Mantega, on Wednesday. Bill Thornhill reports.

  • Equity goes big as Jumbo follow-ons reach record heights

    The volume of jumbo follow-on equity transactions has hit the highest level for the year to date since 2009.

  • Green Investment Bank joins $192m waste plant financing

    The UK’s Green Investment Bank has joined Bayerische Landesbank and Sumitomo Mitsui Banking Corporation in providing £192m for the first project financed, municipal gasification plant in the UK.

  • It’s all euro-ver as CEEMEA returns to dollars

    The mesmerising allure of euro issuance has diminished in CEEMEA. Emerging market bankers are expecting euro denominated deals to be less prominent in the rest of 2014 than they have been so far this year. But several issuers may remain more active in future in the currency than they have been in previous years.

  • Periphery short end yields set for further falls

    Spanish and Portuguese short term yields tickled the 0% mark at a pair of auctions this week — but the rally at the front end of the periphery yield curve could have even further to go, said analysts.

  • SEB hires loan sales specialist

    Swedish bank SEB has made a hire in London to its loan distribution team headed by Marialaura Aymerich.

  • Big September for Europe ABS as VW hits UK

    Volkswagen Financial Services is set to print just its second UK auto ABS transaction in September, and European ABS bankers predict the deal could have plenty of competing supply next month as issuers try to take advantage of a build-up of cash on investors’ balance sheets.

  • French surge helps Gallic banks to equity-linked domination

    It has been the busiest period year to date for equity-linked issuance in years — but many of the market’s biggest players have been muscled out because of the unusual geographic skew of the year’s deals.

  • After strong first half, dividend recapitalisation set to wane

    One of the main sources of primary issuance in the European leveraged loan market so far this year may be set to take a hit, as bankers have expressed concerns over sponsors’ ability to achieve aggressive dividend recaps following investor push back in late July.

  • Investors prepare to hedge Cocos with CDS after rule change

    Upcoming changes to credit default swap (CDS) definitions could have a positive effect on the contingent convertible securities (Coco) market, allowing investors for the first time to buy CDS protecting against the risk of conversion into equity or write-down for tier two Cocos.

  • Don’t cut, the only way for CEEMEA bond volumes is up

    With all that has happened in the last few months in Russia and Ukraine, heads of DCM must be thinking about taking axes to their headcounts. But to start swinging them would be foolish when the market could still bounce back and annual refinancing volumes are about to rocket.

  • First Malaysian plantation Spac ahead as Chemara gets ready

    Chemara Palmea Holdings has filed a prospectus to list in Malaysia and, if successful, will become the first special purpose acquisition company (Spac) to focus on the plantation sector. With Spacs still a nascent part of the Asian market, observers reckon Chemara’s deal will be a test of how comfortable institutional investors are with buying into shell companies, writes Rashmi Kumar.

  • Wider euro CLO paper attracting more buyers as pipeline builds

    CLO investors told GlobalCapital this week that a recent widening in European CLOs has represented a buying opportunity, as they expect spreads to track inwards again once the next clutch of euro denominated deals emerge into the primary market.

  • September a squeeze for bond market borrowers

    Asian bond markets could face oversupply in September as two Chinese banks look to bring big Basel III deals that risk crowding out some issuers or forcing them to pay up. But borrowers seem unfazed. With a mix of new and old names planning to appear in the market, the pipeline looks healthy, write Isabella Zhong and Virginia Furness.

  • Term loan Bs come to Asia as investors mull first deal

    A term loan B market could finally emerge in Asia, after a big investment bank launched a deal for a leveraged borrower aimed at the region’s institutional investors. But the lack of depth and precedent in the Asian institutional market, coupled with low deal volumes, could pose challenges, writes Shruti Chaturvedi.

  • Banks prepping furiously as EBA reveals stress test shape

    The European Banking Authority has published the disclosure templates it will provide when it releases the results of its stress tests in October. Meanwhile, banks still have huge teams devoted to prepping for the test, and the ECB’s accompanying assessment, the Asset Quality Review.

  • It's all euro-ver now in CEEMEA

    The mesmerszing allure of euro issuance has diminished in CEEMEA. Emerging market bankers are expecting euro issuance to be less prominent in the rest of 2014 than it has been so far this year. But several issuers may remain more active in the currency than they have been in previous years.

  • MTN Leak: A bit of a pa-lava

    Thanks to our inability to read a news report properly, the Leak team was bubbling with excitement that next week’s Discover Iceland would be themed on Silvio Berlusconi’s legendary Bunga Bunga parties.

  • National Bank of Abu Dhabi targets debt finance domination

    National Bank of Abu Dhabi is set to embark on a hiring push as it makes its bid for the top in loans, bonds and sukuk origination.

  • Ico’s next Samurai to sharpen focus on institutional investors

    Spain's Instituto de Crédito Oficial (Ico) is considering a Samurai bond targeted at institutional investors, after returning to the market with a retail focused bond earlier this year.

  • Republic of Indonesia announces sukuk roadshow dates

    The Republic of Indonesia has announced the dates of investor meetings for a dollar sukuk, having mandated banks in May.

  • Deutsche tap highlights appetite for senior ahead of TLTROs

    Deutsche Bank took to the senior market on Thursday, tapping a five year floater. The deal is thought to have appealed to investors eager to pick up medium dated paper ahead of what is expected to be a quiet final four months to the year as banks shun senior debt in favour of cheap liquidity from the European Central Bank.

  • Wugang’s $150m three year bullet finds 17 lenders

    Wugang Trading has allocated its $150m three year bullet loan that was launched into syndication in July. Led by Standard Chartered, and backed by a guarantee from Industrial and Commercial Bank of China, the loan attracted 17 lenders in syndication.

  • India's Yes Bank picks 11 for $275m three year loan

    India’s Yes Bank has picked a consortium of 11 lenders to finance its $275m three year loan. Most of the banks that participated in its last fundraising have returned for the new one.

  • Thai Berli Jucker looking for €675m bridge

    Thai conglomerate Berli Jucker Public Co is sounding out banks for a €650m-€675m ($870m-$903m) bridge loan to finance its acquisition of Metro Cash & Carry Vietnam.

  • Five year hits sweet spot for Singapore dollar duo

    Both Ascendas India Trust and Nam Cheong priced five year Singapore dollar bonds on August 19. The Singapore dollar market has been the most active in Asia in recent weeks as the dollar and dim sum markets take a summer breather.

  • Fifteen dial up mobile maker Xiaomi's $1bn loan

    Mobile phone company Xiaomi HK’s $1bn dual tranche loan has received commitments from 15 banks wanting to join at the mandated lead arranger and bookrunner level. The minimum commitment in the senior phase was $150m.

  • Sinopec nets $401m with China Gas block

    China Petroleum & Chemical Corp, or Sinopec, raised HK$3.11bn ($401m) by selling a chunk of its shares in China Gas Holdings on Wednesday night. Despite launching just days after China’s National Development and Reform Commission (NDRC) announced plans to raise gas prices, the deal saw strong interest from investors, allowing the seller to double its proceeds.

  • Hedge funds out of favour in Surya Citra trade

    Many investors were disappointed on August 14 as a 50% increase option was not enough to satisfy demand for the sale of a block of shares in Indonesia’s Surya Citra Media. In the end, more than half were left empty handed in the Rph1.6tr ($137m) stake sale by the company’s parent, Elang Mahkota Teknologi (Emtek).

  • OCBC in limelight with jumbo $2.7bn rights issue

    Singapore’s second largest bank, OCBC, is seeking to raise S$3.37bn ($2.7bn) from a one for eight rights issue to strengthen its balance sheet following its $5bn acquisition of Hong Kong’s Wing Hang Bank in July.

  • Top pricing helps KVB net $102m from QIP

    India’s Karur Vysya Bank (KVB) has raised Rp6.2bn ($102m) through a qualified institutional placement, in a deal that was not only priced close to the top but also increased in size due to strong demand.

  • Getting too close for comfort

    The world of Hong Kong banking is often accused of being an insular one. Everyone knows everyone else and one poor decision can dog you till the end of days, with people unfailingly reminding you of past indiscretions just when you’re beginning to have a good time at the pub.

  • Reliance telco arm Jio lines up low margin on $1.5bn loan

    Reliance Industries’ telecom arm Reliance Jio Infocomm could price its $1.5bn dual tranche financing at an all-in of below 175bp, according to bankers considering participating in the deal.

  • SocGen promotes Baader to research chief

    Société Générale’s chief economist for Asia Pacific has taken on the additional role of head of research for the region.

  • Demand still high as Petron returns with new deal

    Petron Corporation Employees’ Retirement Plan (PCERP) sold a Ps4.37bn ($100m) stake in Petron Corp on August 18 with a block that was driven by residual demand from a transaction five months ago.

  • MCC decides if it ain’t broke don’t fix it with second SBLC

    China Metallurgical Group Corporation (MCC) is back in the market with a new bond, its second this year to be backed by a standby letter of credit (SBLC).

  • HKT Trust finds strong investor signal for $181m

    Just a month after completing a chunky HK$7.9bn rights issue, there was new activity in HKT Trust and HKT Ltd — a single subsidiary of Hong Kong telecoms company PCCW — as an undisclosed existing shareholder raised HK$1.4bn ($181m) by offloading shares.

  • Yingde Gases looks set to prove high yield is still in demand

    Yingde Gases Investment has opened guidance on the first high yield dollar bond from Asia ex-Japan since the markets quietened down at the start of August. Appetite for high yield credit still appears strong and the borrower’s existing bonds rallied after books on the new deal opened on Thursday morning.

  • Taiwan Cement firms up $1bn fundraising with 18

    A total of 18 banks have piled into Taiwan Cement Corp’s $1bn fundraising, with syndication now closed. But despite the fact that the deal is close to two times covered, the borrower is unlikely to increase the final size.

  • Tata Power subsidiary Bhira opens $460m loan

    Bhira Investments, a subsidiary of Tata Power, has opened a $460m 18 month loan into general syndication as part of a $560m fundraising. The deal is already generating a lot of interest thanks to the generous pricing for what is a short tenor borrowing.

  • 'Brave' Volvo's tap of its 2019s grows to €300m

    Volvo launched the post-summer investment grade corporate bond issuance season on Thursday by doubling the size of its €300m print due 2019, which has a coupon of 2.375%.

  • Big September coming for European ABS as VW heads for UK

    Volkswagen Financial Services is set to print just its second UK auto ABS transaction in September, and European ABS bankers are predicting the deal could have plenty of competing supply next month as issuers try to take advantage of a build-up of cash on investors’ balance sheets.

  • Revived Nomura eyes growth in Europe

    The Japanese firm’s international investment banking aspirations are alive and well, writes David Rothnie

  • GMAC’s crisis-era Dutch RMBS hit by downgrades

    Fitch has downgraded a number of RMBS tranches from GMAC RFC Nederland’s E-MAC NL series originated in the run up to the financial crisis, saying the pipeline of potential defaults mean losses are set to accelerate further.

  • Bank of China gearing up for RMB popularity in France

    Bank of China Paris Branch (BoC Paris) has expanded its RMB offering drastically over the past year. With rumours of a clearing bank appointment coming in September, and rising interest among corporates and investors for RMB products, the investment by the Chinese bank could be set to pay off.

  • EOC sets sail for $250m SG listing

    Oslo-listed EOC, which is acquiring the offshore marine operations of its largest shareholder Ezra Holdings, has started pre-marketing a $250m secondary listing on the Singapore Stock Exchange.

  • Scepticism greets Argentina workaround proposal

    Fixed income analysts showed little enthusiasm on Wednesday for Argentine president Cristina Kirchner’s plans to offer foreign law bondholders the chance to switch into local law notes and thus receive the payments blocked by US courts.

  • Chilean HY feels heat as Alsacia investors board restructuring bus

    Latin America’s highest rated and most developed economy is proving a surprising source of concern for EM high yield bond portfolio managers this summer. Bus company Alsacia became the first firm to miss a bond payment on Monday and two other credits are trading at levels that suggest bad news is on the way.

  • Euro options flow spikes as greenback strengthens

    Investors have been trading vanilla options on the euro against the dollar this week, following the recent spot decline in the currency pair.

  • AmeriCredit gets away but timing questioned

    GM Financial’s subprime auto lending unit, AmeriCredit, managed to price its $1bn AMCAR 2014-3 securitization inside guidance on Wednesday. But observers continued to question the wisdom of bringing the deal in the middle of the summer amid a wave of negative sentiment around the sector.

  • 'Brave' Volvo's tap of its 2019 bond grows to €300m

    Volvo preempted the start of the post-summer investment grade corporate bond issuance season on Thursday by doubling the size of its €300m bond due 2019.

  • Low rates point to autumn of long dated deals for IG issuers

    The iTraxx Europe credit default swap index tightened again this week, returning to the 60bp mark after widening to 74bp as a result of geopolitical tensions earlier in August. With 10 year euro rates also falling, investment grade borrowers might be better able to print long dated deals when market activity picks up in September.

  • Guaranteed Scottish confusion

    The UK government will unequivocally honour its guarantee on a project bond for a new green energy power plant in Scotland, regardless of how that country votes in its independence referendum. But that means UK taxpayers could be left underwriting a bond that only benefits a foreign country if Scotland votes yes, while it still isn’t clear how an independent Scotland would honour its share of the UK’s debt obligations.

  • SSA issuers prepare to ease into benchmark action post summer lull

    Several sovereign, supranational and agency issuers are planning to return to benchmark issuance after the summer break and at least two could make an appearance next week.

  • Bridge loans hit six year peak volume on surge

    Bridge loan issuance has surged this year with the highest year-to-date volume since 2008.

  • Corporate hybrid issuance grows in stable ratings environment

    Hybrid capital issuance by western European investment grade corporate borrowers has grown in the past two years, with volumes so far this year reaching $28.8bn, 29% more than at the same time in 2013. The business has brought banks $199m in revenue, according to Dealogic, making it an ever more important source of income for dealers.

  • Correction time for subprime autos as AmeriCredit squeezes through

    US auto lender AmeriCredit paid up for its latest subprime loan securitization this week, after a period of widening in the sector sparked by increased regulatory scrutiny. While the deal did get away successfully, market participants were left wondering why it was brought to market in such poor conditions.

  • Speyside takes UK wrap as guarantee risk dismissed

    With the Scottish independence referendum less than a month away, another project in the country has announced it will enjoy funding advantages as a result of the UK’s £40bn government guarantee scheme. But if Scotland chooses independence from the rest of the UK, market participants appear to be unconcerned about the risks of that guarantee not being honoured.

  • Finansbank considers bond in 2015, EDB rules out 2014

    Two Ceemea issuers —Turkish Finansbank and the Eurasian Development Bank (EDB) — have revealed their capital markets plans for the next few months.

  • Counterparty’s over as Delta Lloyd leads way out of swap trap

    Delta Lloyd offered plenty of encouragement to fellow RMBS issuers fed up with the uncertainty and costs associated with interest rate swap agreements this week, introducing an innovative interest rate cap to its privately placed Arena 2014-1 transaction and paying only a small premium to investors.

  • Funds close relative value hedges as polls show Scottish secession unlikely

    Hedge funds are closing relative value trades on financial names which were traded to hedge a potential widening if a secession vote in the Scottish referendum were to occur on September 18. One such trade, tipped by strategists at BNP Paribas in London, was closed this week after polls have increasingly shown that Scotland will choose to stay part of the UK.

  • Litigation tops agenda as BofA pays $17bn

    Bank of America has reached a record $17bn settlement with the US Department of Justice, federal agencies and six states, showing the extent to which litigation risk still dominates bank performance. The settlement comes hot on the heels of Citigroup’s $7bn settlement last month and the $9bn fine paid by BNP Paribas over sanctions violations.

  • SwapClear expands in Australia with new head

    Marcus Robinson has been appointed head of SwapClear Australia in Sydney, in a new role that is part of LCH.Clearnet’s bid to expand in the region.

  • Morgan Stanley loses director in high yield

    Berneej Saini is leaving Morgan Stanley, where he was an executive director in high yield at the US bank’s London branch, to work for his family business.

  • Amtek waiting till September to close €305m loan books

    German automotive company Amtek will not close the book on its €305m deal until September, after entering the leveraged loan market towards the end of July’s glut of deal supply.

  • Full head of hair for Alsacia bondholders in debt restructuring

    Chilean bus operator Inversiones Alsacia’s bonds rocketed 19 points in secondary market the day after it missed an amortisation and coupon payment after the company released details of its debt restructuring.

  • Low rates point to autumn of long dated deals for IG issuers

    The iTraxx Europe index, a key indicator of market perceptions of the creditworthiness of investment grade bonds, returned to the 60 mark on Wednesday after widening to 74 on Monday. Along with a fall in the 10 year euro interest rate swap rate, that could leave investment grade borrowers better able to print longer dated deals when market activity picks up in the autumn.

  • Yapi Kredi and Isbank look to September loan signings

    With Akbank having led the year’s second wave of Turkish bank refinancings last week, peers Yapi Kredi and Isbank are expected to follow suit in the second or third week of September, say bankers. Meanwhile, Finansbank is looking to refinance a one-year syndicated loan that matures in November.

  • Dubai borrowers push for loan repricing

    The Russian loans market is all but shut and other emerging markets quiet as participants take their summer vacations, but activity the Middle East is ticking over this week thanks to repricing moves by some of Dubai’s big name borrowers.

  • Finansbank considers dollar bond in 2015

    Turkish Finansbank has ruled out the possibility of coming to the international bond markets again before the end of the year but is looking ahead to the possibility of issuing another dollar bond again in 2015.

  • Investors charge small premium for Delta Lloyd’s swap cost escape

    Delta Lloyd paid a small premium to investors for the lack of a standard interest rate swap in its latest RMBS transaction, according to arranger ABN Amro, which has been fielding calls from a number of issuers keen to explore swap alternatives with costs becoming an increasing irritation for RMBS issuers.

  • New York regulator slams StanChart compliance

    The New York Department of Financial Services said that Standard Chartered had to suspend dollar clearing for certain clients and pay a $300m penalty after it exposed weaknesses in the bank's compliance and anti-money laundering procedures.

  • Stress tests to offer model insight

    The European Banking Authority has published the disclosure templates it will provide when it releases the results of its stress tests in October. The templates show that analysts will receive a treasure trove of data on how bank capital models work.

  • UBS appeals to Australian accounts with rare print

    UBS benefited from its rarity in Australian dollars to sell a hefty dual tranche five year print on Wednesday. The scarcity of senior paper from the issuer allowed it to price its first deal in four years at the tight end of guidance

  • BOQ to visit Europe for next REDS ABS

    Bank of Queensland has broken a recent silence in Australian ABS by mandating banks for its first REDS EHP programme transaction of the year, and will be visiting European investors just as supply in the region is expected to ramp up.

  • Alpha responds to capital concerns, doesn't deny deals to come

    Greece's Alpha Bank has responded to speculation on its capital needs, not rejecting rumours that it may have to issue more capital but asking the investors to wait.

  • Niche on the menu for borrowers sated on benchmark funding

    Several borrowers are set to pick up funding in non-core dollars and other niche currencies over the coming weeks and months, as, being well ahead on their funding programmes for the year, they would rather raise small amounts at attractive levels than storm into the market with benchmarks.

  • Malaysia Airport puts landmark sukuk on the radar

    Malaysia Airport Holdings (MAHB) is considering bringing out what could be the first ever ringgit denominated perpetual sukuk to carry a credit rating. The proposed issue will be from a MR2.5bn ($792m) sukuk programme the borrower established in August 2013.

  • EM bond market gears up for September as Middle East keeps loans ticking

    Without new supply, the EM bond market has turned to focus on secondary market events and the September pipeline. Senior emerging markets bankers, despite the torpor gripping primary markets this month, are expecting a bombardment of supply from a all parts of the EM world, including Russia.

  • Not over yet: Berau pursues investors in China

    Indonesia’s Berau Coal Energy, which was forced to pull a bond issue last week, is attempting to re-engage investors with a site visit this week.

  • Supply trickles back in as investors return from summer

    Investors are starting to return to their desks, and some are craving FIG supply as the clock ticks down to the end of the summer lull.

  • Uncertainty over September levfin pipeline, but corp deals still in the works

    In the middle of a quiet August, thoughts among leveraged finance bankers have naturally turned to September, traditionally one of the busiest months of the year. But market participants are unsure how many transactions still need to be done, following the surge of supply that hit the market in July.

  • Multi-clearing bank model to give France leading RMB role, says Europlace

    France's planned offshore renminbi clearing house infrastructure, which will see multiple banks share the ability to clear and settle RMB payments, will lay the foundation for the rapid growth of RMB business in France and beyond, according to those involved with the project.

  • Total Derivatives: CNY well bid pre-PMI; steeper curve

    CNY swaps were well bid on Wednesday in anticipation of another firm China PMI print on Thursday. With the paying extending out to the less liquid 10 year point, the 1s/10s curve slope has steepened and sources expect Thursday's data to drive the curve move further, writes Deirdre Yeung of Total Derivatives.

  • JP Morgan says EM inflows will support new RQFII equity products

    JP Morgan Asset Management (JPMAM) is hoping that international fund flows into emerging markets — Asia and China in particular — will help to drive interest in its new China A-Share Opportunities Fund, which it launched on August 18.

  • Oceanwide looks to finance acquisition

    China Oceanwide Holdings Group is meeting investors in Hong Kong this week. While the meetings are technically a non-deal roadshow, investors said the borrower was looking to finance an acquisition.

  • Qualitas and NOL make IPO plans

    Malaysian healthcare provider Qualitas Medical Group is looking to list its shares in the country before the end of the year, tapping two banks to lead its IPO.

  • Uni-President sticks with tight pricing for Formosa dual tranche return

    Uni-President China Holdings, a big supplier of juice drinks and instant noodles in China, priced its second Formosa bond late on Tuesday, fixing the yield on the Rmb500m ($82m) three year tranche at 3.5% and on the Rmb500m five year at 3.9%.

  • China Vast nets $132m with friends and family IPO

    China Vast Industrial Development Company has raised HK$1.02bn ($132m), pricing its Hong Kong IPO close to the lower end of guidance in a deal largely taken up by domestic Chinese investors.

  • GM Financial subprime deal ‘struggling’ amid market malaise

    A new $1bn subprime auto ABS from GM Financial’s AmeriCredit unit was said to be struggling on Tuesday afternoon, with market participants saying it was strange to see the deal hit the market barely a week after GM Financial revealed it had been subpoenaed by the US Justice Department.

  • First Trust lists maiden multi-asset, actively managed ETF

    First Trust has listed a new exchange-traded fund on the NASDAQ OMX which began trading last Thursday. The ETF, known as First Trust Strategic Income ETF, is the firm’s first multi-asset income fund that is actively managed, and provides a low-cost alternative to traditional fixed-income funds through diversification and the use of multiple asset classes.

  • BM&FBOVESPA’s single-platform clearinghouse begins operations

    BM&FBOVESPA, Brazil’s sole bourse, has unified its four clearinghouses for different asset classes into one single platform, which began live operations Monday for exchange-traded and over-the-counter derivatives. The firm will now look to launch equities in 2015.

  • Bridge loans surge to highest volume since 2008

    The surge in bridge loans this year means this form of financing is making up an increasing part of the market, with the highest year-to-date volume since 2008.

  • Fast and real money race to unwind Crossover hedges

    Fast and real money investors are racing to unwind hedges on iTraxx Crossover following a recent tightening of the index from 272bp on Friday to 248bp at close on Tuesday.

  • Société Génerale loan sales specialist departs

    Société Génerale has lost an experienced loans sales specialist from its London-based team overseen by Richard Hill, global head of loans sales and trading.

  • SEC's money fund plan adds worst parts of banking

    The Securities and Exchange Commission has tried to cut the risk of runs in the money market fund industry by introducing liquidity fees and redemption gates. But as the Federal Reserve has just pointed out, by doing so it has done the opposite of what it intended, and made the funds more like banks.

  • Goldman to face court over equity derivs sold to Libya

    Goldman Sachs has had a request to settle out of court dismissed after Libya’s sovereign wealth fund alleged the bank deliberately exploited a relationship of trust that ended in the fund entering equity derivatives trades amounting to in excess of $1bn.

  • Jumbo follow-on deals at highest level since 2009

    The volume of jumbo follow-on equity transactions has hit the highest level for the year to date seen since 2009.

  • Big Yellow Group signs £145m refinancing loan

    UK self-storage company Big Yellow Group has signed a £145m refinancing loan with Lloyds and HSBC, that will pay down a £190m loan made in 2012.

  • You can’t offer risk without paying up

    Indonesia’s Berau Coal Energy tried to tip the balance in its favour with its bond offering last week by asking investors to take on greater risk but not compensating them for it. Unsurprisingly, the deal did not see the finish line. BCE would do well to keep in mind the age old adage that you can’t have your cake and eat it too.

  • Faster signs €98m buyout loan

    Faster SpA, the Italian producer of couplings for the hydraulic industry, has signed a €98m loan to back its buyout by Capvis Equity Partners.

  • Corporate hybrid issuance boosts DCM revenues

    Convertible bond issuance by western European investment grade corporate borrowers has grown in the last two years, with volumes so far this year reaching $28.8bn, 29% more than at the same time in 2013. This business has brought banks $199m in revenue, according to Dealogic, making it an ever more important source of income for dealers.

  • QBE plans to issue capital and ditch European business

    International insurer QBE is planning a capital raise and more disposals of assets, which will includes IPOs and sales.

  • Don’t cut now, the only way for CEEMEA bond volumes is up

    With all that has happened in the last few months in Russia and Ukraine, heads of DCM must be thinking about taking axes to their headcounts. But to start swinging them would be foolish when the market could still bounce back and annual refinancing volumes are about to rocket.

  • FGB hires from NBAD for head of corporate finance advisory

    First Gulf Bank has hired Michael Aissaoui as head of corporate finance advisory. Aissaoui was hired from National Bank of Abu Dhabi where he held the very same role since 2012.

  • UBS and Wells highlight appetite for Aussie prints

    UBS is set to make a rare appearance in the Australian dollar market on Wednesday with leads offering guidance on a dual tranche five year print. The trade follows a Kangaroo sale at the long end of the curve from Wells Fargo, priced on Tuesday.

  • Dealers should pay for credit ratings

    News last week that a minor tweak in S&P’s corporate loan rating methodology could win them back market share in the lucrative new issue CLO market reignited the debate about the business model of issuers paying to be rated. Even if S&P’s internal controls and the Chinese wall which they insist exists between commercial and analytical considerations is robust, market participants clearly do not believe it. It is time to overhaul the way the credit ratings industry works.

  • Delta Lloyd goes swapless for return to Dutch RMBS

    ABS bankers confessed themselves disappointed on Tuesday when they learned Delta Lloyd would not be publicly syndicating its first RMBS since 2012, but they perked up when they saw the Dutch insurer had decided to forego an interest rate swap and instead introduce an innovative cap.

  • Singapore dollar duo opt for 5 years

    Both Ascendas India Trust and Nam Cheong opened five year Singapore dollar bonds on August 19. While Asia’s bond markets have been largely quiet over the August summer lull, there have been a number of Singapore dollar issuances in the last two weeks.

  • Reverse enquiry drives $100m Petron block

    Petron Corporation Employees’ Retirement Plan (PCERP) sold a Ps4.37bn ($100m) stake in Petron Corp on August 18 with a block that was driven by residual demand from a transaction five months ago.

  • Thailand’s Berli Jucker in talks for €650m acquisition bridge

    Thai integrated packaging solutions provider Berli Jucker Public is likely to approach the market for a €650m-€675m ($870m-$903m) bridge loan in the next couple of weeks. The money will be used to finance its acquisition of Metro Cash & Carry Vietnam, according to bankers.

  • Belle Corp mulls share sale in Sinophil

    Philippine property developer Belle Corp is looking to divest some of its stake in Sinophil Corp as part of a wider reorganisation of both companies.

  • Ashurst strengthens Asian capabilities

    Law firm Ashurst has scooped a team of four from O'Melveny & Myers to strengthen its restructuring and special situations capability in Asia. The team consists of three partners and a senior consultant who will be based in Hong Kong, Jakarta and Singapore.

  • Pricing for Reliance Jio’s $1.5bn could come in low

    Indian major Reliance Industries’ telecom arm Reliance Jio Infocomm could be looking to price its $1.5bn dual tranche financing at all-ins below 175bp, said a banker who received the invitation but is not considering participating.

  • TCCI on firm ground with 18 on $1bn loan

    A total of 18 banks have piled into Taiwan Cement Corp’s $1bn fundraising, with syndication now closed. But despite the fact that the deal is close to two times covered, the borrower is unlikely to increase the final size.

  • India’s PFC gets commitments from 12

    India’s state-owned Power Finance Corp (PFC), which launched its $250m five year loan into general syndication on July 11, has received commitments from 12 lenders.

  • Parental support for Guotai Junan’s $263m rights issue

    Hong Kong-listed Guotai Junan International Holdings may have only announced its HK$2.04bn ($263m) one for five rights issue on August 19 but the transaction is already gaining plenty of traction thanks to parent Guotai Junan Holdings (GJHL), which will be subscribing to 66.8% of the deal.

  • Uni-President set to price Rmb1bn dual tranche Formosa

    Taiwan instant noodles and snacks maker Uni-President China Holdings will price its second Formosa bond on Tuesday. The Rmb1bn ($163m) deal has three and five year tranches with respective guidance of 3.4%-3.6% and 3.7%-3.9%, according to bankers on the deal.

  • Chile’s Alsacia says investors on board for restructuring as authorities blamed

    Santiago de Chile bus operator Inversiones Alsacia missed a payment due on its dollar bonds on Monday and said it had reached the beginnings of a restructuring agreement with bondholders. The issuer went on to launch a scathing attack on Chilean authorities for changes in the concession that led to its weak financial position.

  • AmeriCredit brings new subprime deal after secondary wobble

    GM Financial’s subprime auto lending unit, AmeriCredit, is in the market with a new subprime auto loan securitization, just a week after its legacy paper traded at a discount following the Justice Department’s increasing focus on the sector.

  • UBS hires BAML equity sales official

    Matthew Karwelies, an equity derivatives sales official at Bank of America Merrill Lynch, has joined UBS.

  • CDS notional drops by 30%

    Overall credit default swap notional that was reported to swap data repositories last week decreased by 30% from the previous week, according to data from the International Swaps and Derivatives Association. Overall interest rates derivatives trading that was reported, however, climbed by 8%.

  • ISDA excludes EM from asset package delivery under new credit defs

    The International Swaps and Derivatives Association will not apply the asset package delivery clause found in the revised credit derivatives definitions to contracts executed in emerging markets when it is implemented in September.

  • ING expands in EM equity with two appointments

    ING Investment management has expanded its emerging market equities team with the appointment of Ashish Goyal, ex-investment manager at Eastspring Investments in Singapore, as head of emerging market equity. Robert Holmes, ex-fund manager at Griffin Capital Management in London, will report to Goyal in his role as senior portfolio manager emerging market equities.

  • Moelis-backed CLO manager hires analyst from CIFC

    A CLO manager set up earlier this year by Moelis Asset Management has hired a fund analyst from CIFC Asset Management to join its growing team.

  • Firms eliminate $500 trillion in notional principal

    Derivatives market participants have eliminated $500 trillion in notional principal since the introduction of TriOptima’s triReduce compression service in 2003.

  • Wendel continues Materis sell-offs, opening negotiations for Chryso

    French investment firm Wendel will sell another subsidiary of Materis, the French admixture producer for concrete and cement, in a deal valued at €290m.

  • Marfrig preps Moy Park for meaty IPO

    Brazilian food processing company Marfrig is preparing to list its European poultry business Moy Park.

  • UBS hires for Benelux FIG

    UBS has moved to fill a recent gap in its financial institutions group’s debt capital markets business with a hire.

  • Second Scottish project wins UK Treasury backing for bond

    A joint announcement by Green Investment Bank, John Laing and Estover Energy has revealed that the UK Treasury will guarantee a £48m 12 year bond as part of the financing for a £74m green energy power plant in Speyside. It will be the second bond for an infrastructure project in Scotland to benefit from the government's guarantee scheme.

  • BMW drops return to South African auto ABS

    BMW Finance has abandoned its return to the South African auto loan securitization shelf it set up with Standard Bank in 2011, blaming volatility in the wake of the rescue of African Bank earlier this month.

  • ING IM hires for EM equities

    ING Investment Management International (ING IM) has made two senior hires for its emerging market equity team. Ashish Goyal has been appointed head of the emerging market equity (EME) team and Robert Holmes as senior portfolio manager emerging market equities.

  • Changes in CDS offer boon to CoCo market

    Upcoming changes to credit default swap (CDS) definitions could have a positive effect on the contingent convertible securities (CoCo) market, allowing investors to buy CDS protecting against the conversion of tier two securities into equity for the first time. The new hedging options are expected to tighten spreads in the CoCo market and could help to avoid dramatic sell-offs.

  • Loans market looks for BRICs and Turkey revival as volumes ebb

    Global emerging market loan volumes are not far off the pace of last year’s post-financial crisis record levels, despite big holes in the Russian and Turkish pipelines, but the market faces an uphill struggle to keep up in the coming months unless borrowers from the BRICs (Brazil, Russia, India, China) improve their deal signing rate.

  • CS jolts primary pulse with tap

    Credit Suisse, which on August 7 priced a 364 day €1.25bn senior unsecured deal, is back in the market with a tap of its €1.75bn 1.375% November 2019 senior unsecured bonds.

  • EDB rules out international capital markets funding for the rest of 2014

    The Eurasian Development Bank has no plans to access the international debt capital markets for the rest of the year, despite $120m of its $500m 7.375% bonds maturing on 29 September.

  • CMBS to fund UK students again in Avenue Capital deal

    CMBS investors are about to encounter the problem experienced by parents across the UK every August, as they are asked to participate in Avenue Capital’s £107.3m ‘AYR Issuer’ transaction to help keep a roof over thousands of UK students’ heads.

  • All hail the Lloyd’s building

    It’s a big year for a major European bank, with the office set to move to a new building and excitement in the air.

  • Exotix teams up with African bank to offer increased coverage

    Exotix has joined with a leading African bank to allow its customers to share the other's research, sales and trading platforms.

  • ‘Get on your knees or pay the fees’

    Bankers are feeling the squeeze these days. So when it comes to the issue of school fees, creative thinking may be required, especially in London where competition for the best schools is keen and fees are even keener.

  • Korea’s Kolmar mulls IPO of subsidiaries

    The South Korean IPO market is heating up again, with cosmetics and pharmaceutical company Korea Kolmar Holdings now looking to list two of its subsidiaries. It comes on the back of the extraordinary reception seen for Cuckoo Electronics last month, when it saw its $248m IPO 600 times oversubscribed.

  • UBS loses head of EMEA levfin

    Giles Borten, co-head of EMEA corporate debt capital markets and sole head of EMEA leveraged finance at UBS, has left the bank, according to an internal memo seen by GlobalCapital.

  • Wugang wraps up $150m loan with 18 lenders

    Wugang Trading has issued allocations for its $150m three year bullet loan that launched into syndication in July. The loan, which was led by Standard Chartered and came backed by a guarantee from Industrial and Commercial Bank of China, saw 17 lenders join during syndication.

  • Biscuit maker Jiashili looks to bite into SEHK

    Chinese company Jiashili Group is seeking a listing in Hong Kong, with the biscuit maker filing a preliminary prospectus with the regulator.

  • Malaysia rejects Matrix Capacity’s $317m IPO application

    The Securities Commission Malaysia has rejected an IPO application made by Matrix Capacity Petroleum, according to a banker close to the deal.

  • Total Derivatives: 5y CNY bid after sharp FDI decline

    Short CNY swaps have been offered on expectations of further target easing from the People's Bank of China (PBoC), while a significant drop in foreign direct investment has backed paying in five years. Sources expect to see the curve correct steeper in the near term, writes Deirdre Yeung of Total Derivatives.

  • Ex-Fitch trio set up Argie advisory shop

    Three former Fitch credit analysts have launched an advisory boutique to help companies in inflation and recession hit Argentina to obtain financing.

  • OCBC banks on jumbo $2.7bn rights issue

    Singapore’s second largest bank, OCBC, is seeking to raise S$3.37bn ($2.7bn) from a one for eight rights issue to strengthen its balance sheet following its $5bn acquisition of Hong Kong’s Wing Hang Bank in July.

  • Ten banks eyeing Xiaomi’s $1bn loan

    Mobile phone company Xiaomi HK’s $1bn dual tranche loan has around ten banks processing approvals to join at the mandated lead arranger and bookrunner level, for which the minimum commitment was $150m.

  • Indonesia announces sukuk roadshow dates

    The Republic of Indonesia has announced the dates of investor meetings for a dollar sukuk after mandating banks in May.

  • Sinopec makes $401m with hefty China Gas block

    China Petroleum & Chemical Corp, or Sinopec, has raised HK$3.11bn ($401m) by selling a chunk of its shares in China Gas Holdings. Despite launching just days after China’s National Development and Reform Commission (NDRC) announced plans to hike gas prices, the deal saw strong interest from investors, allowing the seller to double its proceeds.

  • Brightoil closes $600m loan with club of five

    Brightoil Petroleum has sealed a $600m five year financing to back its acquisition of Kerr-McGee China Petroleum oil blocks from Anadarko Petroleum Corp.

  • More than half zeroed in $137m Surya Citra block

    Many investors were disappointed on August 14 as a 50% increase option was not enough to satisfy demand for the sale of a block of shares in Indonesia’s Surya Citra Media. In the end, more than half were left empty handed in the Rph1.6tr ($137m) stake sale by the company’s parent, Elang Mahkota Teknologi (Emtek).

  • Tata Power’s Bhira launches $460m loan with five

    Bhira Investments, a subsidiary of Tata Power, has opened a $460m 18 month loan into general syndication as part of a $560m fundraising. The deal is already getting a lot of enquiries thanks to the generous pricing for what is a short tenor borrowing.

  • CME, Reuters launch new silver benchmark

    CME and Reuters have launched the new London Bullion Market Association silver price mechanism in partnership with LBMA, following the news last month that the two companies would take over from the London silver fix when it ceased operations Thursday.

  • Akbank adds commitments but pays higher margin on loan

    Turkey’s Akbank has signed a $1.5bn-quivalent one year refinancing facility, with a higher margin from its most recent deal despite more banks coming in. The loan marks the start of the year’s second wave of Turkish bank refinancings, with Yapi Kredi and Isbank also in the market.

  • HPCL’s new facility prices tighter than last one

    Indian state-owned oil company Hindustan Petroleum Corp has priced its $200m five year loan, which features a $100m greenshoe, at an all-in narrower than its most recent syndication that had a shorter tenor.

  • Dubai set to be MidEast RMB hub; talk of clearing bank ahead

    Amid this year's flurry of renminbi clearing bank designations to European and Asian cities, another region could soon be added to the scope of RMB internationalisation. Dubai, the second largest emirate in the United Arab Emirates (UAE), is on the way to becoming an RMB hub for the Middle East, and three sources have told GlobalRMB that the People’s Bank of China (PBoC) is set to pick a clearing bank.

  • Chemara eyes $205m Malaysian Spac IPO

    The Malaysian IPO market is starting to heat up, with Chemara Palmea Holdings filing a prospectus to list as a special purpose acquisition company (Spac). If successful, it will raise MR650m ($205m) to fund future acquisitions.

  • RMB round-up: August 14, 2014

    In this round-up, Korean RMB deposits have soared after the country's RMB clearing bank appointment in July, BoC Hong Kong extends its RMB clearing hours to cover the Americas, and China’s monthly cross border trade RMB settlement fell 12% in July.

  • From Binondo to Makati: Manila’s RMB hub in the making

    Philippine banks and Bank of China Manila branch are working to provide local corporates with the right tools to deal with booming interest in RMB products.

  • Malaysia ready for RMB, but Chinese counterparties hold traders back

    While China's government and financial authorities busy themselves with promoting the internationalisation of the renminbi, the country's corporates sometimes lag behind foreign firms looking for a trade advantage. Malaysia is one such market, say bankers.

  • National Agricultural set for $212m placement

    National Agricultural Holdings is set to raise HK$1.64bn ($212m) through a placement of shares, which if priced at the top of the guidance provided will be a hefty premium to the company’s previous close.

  • MCC returns with second SBLC-backed bond

    China Metallurgical Group Corporation (MCC) is set to tap the debt market for the second time in two months by banking on a strategy that worked out well for it the last time — having a standby letter of credit (SBLC) from one of the bookrunners.

  • SocGen’s Baader becomes Apac head of research

    Société Générale’s chief economist for Asia Pacific has taken on the additional role of head of research for the region.

  • CLO deal flow piques interest of listed fund

    Fair Oaks Income Fund, the first CLO fund to float on the London Stock Exchange since the financial crisis, has said developments in the European market have opened the door to it becoming an originator.

  • Fisher & Paykel prices first antipodean cards ABS

    Fisher & Paykel Finance, the New Zealand consumer lender that is owned by Chinese white goods maker Haier, this week priced NZ$283.25m (€180m) of credit card ABS, the first time credit card receivables have been used as collateral for a transaction in either New Zealand or Australia.

  • Crédit Agricole sets up for European structured ABCP

    Crédit Agricole has adapted the documentation of its European asset backed commercial paper (ABCP) programme to enable it to issue floating rate structured notes, in what Moody’s said is the first such move by a bank sponsored conduit outside the US.

  • ECB influence revealed as Solvency II tweaks mean concessions for ABS

    ABS experts have suggested to GlobalCapital that new revisions to ABS capital charges for insurers are a welcome demonstration of European Central Bank influence over regulators. But they insisted the changes will have little impact on the market because they focus on lower-rated assets in a market dominated by triple-A paper.

  • Alcentra warned by shrunken Toro in CLOs

    Alcentra may be next to tackle the primary European CLO market after releasing the structure of its third euro deal of the year this week, but the manager may be faced with the same wider junior tranche spreads that hit Chenavari’s Toro transaction a week ago.

  • Minerva tap charges tighter as EPM hits road

    Brazilian meatpacker Minerva provided bond investors with their only chance for new LatAm paper this week, and the book size and aftermarket performance showed that new issue conditions have not at all cooled for the August holidays.

  • People Moves in Brief

    BNP Paribas hires capital structurer - Citi appoints EQD head - Reinhart to join UBS for FIG - JPM takes on City veteran

  • Aurelius rules out private Argentina solution

    One of the key holdout creditors in the Argentine debt saga dismissed any hope of a settlement with the private sector this week, leaving a cure for the sovereign’s default looking further away than ever.

  • Compression usage spikes as firms wrestle with SLR

    Banks looking to cut their Supplementary Leverage Ratio (SLR) are turning to compression techniques in ever larger volumes to ratchet down the individual numbers of swap trades on their books as well as the overall notional amount they have outstanding.

  • Roadblocks on the highway to QE

    Scepticism and confusion abound when the ECB’s ABS purchase programme is under discussion. Is it supposed to create money, to channel credit to peripheral SMEs, or to reinvigorate the private sector? Maybe all that and more.

  • Bankers want Russians to give incentives not threats

    With some Russian loan deals progressing despite US and EU sanctions, those borrowers who find support among banks should make sure they reward that loyalty later. But nobody wants to sour relations, so banks which choose not to lend must have long list of reasons why they can’t. Russian borrowers should not take it personally — they are going to need all the friends they can get, so more carrot and less stick is the way to see deals through.

  • Compression usage spikes as firms wrestle with leverage ratio

    Banks looking to cut their Supplementary Leverage Ratio (SLR) are turning to compression techniques in ever larger volumes to ratchet down the individual numbers of swap trades on their books as well as the overall notional amount they have outstanding.

  • Kenya live with loans as power and pipes get government push

    Kenya is ramping up its infrastructure financing drive, with Kenya Pipeline Co (KPC) and Kenya Power and Lighting Company (KPLC) pushing forward with long dated loan plans. The deals come amid a spate of Kenyan projects that look set to benefit not only the country itself but its neighbours in East Africa.

  • Russian loan return leaves market divided

    The arrival of the first Russian loan since the most recent rounds of European Union and US sanctions against the country were put into force has left loans bankers deeply split. Some claim the deal from steelmaker Evraz, along with others that are in discussion such as Slavneft Yanos, are proof that syndicated lending is still open to Russian borrowers, but less optimistic bankers see these as the last sputterings of life from a dying market.

  • MTN Leak: Lunch meatings

    Citi bankers showed themselves to be among the most sociable in the market this week after MTN head Amaury Gossé cut his holiday short simply to make a lunch date with Leak. Well, we assume that’s what happened.

  • Poor German growth fortifies high grade credit

    Germany’s worse-than-expected GDP figures were bad news but investment grade bond yields remained flat, or by some accounts even tightened, on the release of the data on Thursday morning.

  • TLTRO threatens to up pressure on SSA second half supply squeeze

    Investors in supranational and agency paper are already facing a struggle to find bonds given how well advanced many borrowers are in funding this year — but they could face an even bigger drought. Development banks anticipate the European Central Bank’s Targeted Long Term Refinancing Operations (TLTROs) could lead to them having lower funding needs, writes Tessa Wilkie.

  • Italian corporates could shed periphery label, say bankers

    As the premium paid by Italian corporate issuers dwindled ahead of summer, senior bankers suggested that the periphery designation was no longer appropriate. The country's official return to recession last week did little to change their minds.

  • Gulf soars as Emirates and ABC wrap up deals

    Europe’s loan market may have hit a summer lull, but amid sweltering temperatures the Gulf has this week seen big deals unveiled and others rumoured.

  • IFC eyes EM for next green bond first

    The International Finance Corp is scouting for the next opportunity to develop green bonds in emerging markets, following its sale of the first such bond from an international issuer in the Peruvian market this week.

  • US corps scramble to issue before summer

    US corporate issuance slowed through the week as books thinned and issuers offered concessions in order to get deals done before the summer holiday season.

  • Russian threats to bankers are empty

    Banks are under pressure to lend to Russian borrowers. But although bankers have grown accustomed to moving mountains for the Russian issuers, they should not fear the repercussions if this time they cannot.

  • Quirón bucks market volatility to win out on borrower’s terms

    Spanish private hospital operator Grupo Hospitalario Quirón shrugged off the demands of a strong lender’s market this week, in a €2.15bn deal that recalled the weight of CVC’s reputation among investors.

  • Court steps in to free foreign banks from US control

    A court judgement in New York has taken foreign banks out of the direct control of US courts, in a decision which pulls back the scope of their jurisdiction. The judgement clarifies that the New York courts do not have jurisdiction over a bank simply because it has a branch or subsidiary in the state.

  • New Polish law lifts demand for MBank covered bonds

    Poland’s MBank Hipoteczny has issued its fifth and sixth covered bond deals of the year, the largest issues denominated in Polish zloty in the asset class.

  • What a way to make a living (will)

    The US Federal Reserve told 11 banks last week that they had failed utterly to draft so called living wills — plans for how they would raise capital in a crisis and how they could be resolved in a hurry if they go under. It was right, they had failed. But the whole concept of living wills is shonky.

  • Russia bonds: 2014 maturities and potential for refinancing

    With around $5.9bn of international bonds maturing before the end of this year, Russian banks and corporates face an uncertain future in the global capital markets as US and EU sanctions begin to bite. Among borrowers that have maturities looming are Sberbank and Gazprombank which are both sanctioned by the US and EU.

  • As levfin market falters, banks doubt logic of leverage on €845m BvD deal

    Bankers and investors are casting an increasingly critical eye on aggressive deals scheduled for launch in September, as relentless fund outflows indicate investors might not commit as willingly as they did in the first half of 2014.

  • Macquarie preps tech equipment ABS

    Macquarie Group’s US equipment finance unit is preparing to sell a $285m mid-ticket asset-backed security backed by commercial leases on various information technology, business-use and medical equipment.

  • Amtek works with investors during the summertime lull

    Amtek Global Technologies, having approached the loan market for the first time in July, will not set a deadline for commitments on its €305m deal but is using the calmer August weeks to improve lenders' understanding of the credit.

  • CEEMEA volumes may rally but 'miracle' needed to match 2013

    Bankers are hopeful that CEEMEA bond volumes could still rally enough to get close to the $180.9bn printed in 2013, but data analysis of volumes and predicted deal numbers indicates a record breaking year is highly unlikely — a big disappointment for the market considering the much higher volume of bond maturities this year.

  • SSAs enjoy niche summer as investors snap up non-core dollars

    Public sector issuers shrugged off the quiet dollar and euro markets to take advantage of other currency opportunities this week — and there are signs that more deals could follow in the summer.

  • Leveraged loans - news in brief, August 15, 2014

    Expro - EMT

  • Luxembourg plans investor meetings ahead of sukuk sale

    Luxembourg, which is gearing up to sell the first euro denominated sovereign sukuk, is set to meet investors in Asia, Europe and the Middle East at the end of September. It has hired a pair of banks to lead the project.

  • Scope highlights positives of BES fiasco

    The swift breakup of Banco Espírito Santo highlights the improvements made in bank resolution since the financial crisis and should encourage investors, according to ratings agency Scope Ratings.

  • Legal Kiwis set for take-off as RBNZ approves covered bonds

    The Reserve Bank of New Zealand has given regulatory approval for ASB Bank, ANZ New Zealand, Bank of New Zealand and Kiwibank to issue their first legally compliant covered bond deals. The quartet should expect to emulate the success of Westpac New Zealand, which got a superb response for its legally compliant debut issued in June.

  • AT1 deals will flow but dynamic will change, say bankers

    Bankers are certain that the European additional tier one (AT1) securities market will reopen in September, ahead of the European Central Bank’s Asset Quality Review (AQR), despite the volatility last week that had many in the market questioning the immediate future of the asset class. But the deals that come are likely to be from only the highest quality names, and will have to be priced carefully.

  • Total shows lasting appeal to investors in Swiss franc return

    Total returned to the Swiss franc market in style on Tuesday, quadrupling its original size ambition as investors rushed to place orders for the French oil company's first issue in the currency for more than five years.

  • Equity capital markets, news in brief — August 15, 2014

    Rhön-Klinikum — Diamond Trust Bank — Retroscreen Virology — Provident Financial

  • Citi consolidates derivs with new equities head

    David Haldane, head of equity derivatives for Australia and New Zealand at Citigroup in Sydney, has been appointed head of equity derivatives for EMEA in London with effect from September.

  • Swiss market beats euros to the punch as issuers return

    The Swiss franc market’s summer hiatus looks to be coming to an early end with Credit Suisse and Wells Fargo selling well received deals in Swiss francs this week.

  • Polish refiner leaps into quiet eastern European market

    Polish oil refiner Lotos plans to raise Z1bn ($318m) through a rights issue next month, in what will be a rare example of Polish ECM business after a quiet year so far for eastern Europe.

  • Fitch seeks RPL ratings input

    Fitch Ratings is responding to investor demand for higher yielding, reperforming residential mortgage loan securitizations, which have not previously carried credit ratings, and is looking for ways to rate potential collateral pools.

  • Israeli ECM activity up despite crisis

    There has been a greater volume of equity issuance from Israeli firms since the escalation of the conflict in Gaza than there had been over the rest of 2014.

  • Competition hots up in record-breaking ECM year, as small banks rise up tables

    Bookrunner league tables have become increasingly closely-fought in 2014, as banks battle to win an increasing share of record-breaking volumes in European ECM.

  • Provident Financial nets £120m for Duncton Group takeover

    The UK’s Provident Financial issued 5,911,330 new shares through an accelerated bookbuild on Thursday, raising £120m to fund its acquisition of the Duncton Group.

  • Nordic banks hopeful as Danish telecoms company TDC plans bond

    Danish telecoms firm TDC has announced it is planning its first bond issue since KKR sold its remaining stock in the company in September last year. Nordic banks could pick up the mandates.

  • Saudi stock exchange reform a ‘game changer,’ says EIIB CEO

    European Islamic Investment Bank chief executive Zak Hydari spoke to GlobalCapital’s sister publication Islamic Finance Information Service about competing for sukuk mandates, the huge opportunities that Saudi Arabia’s opening of its stock exchange presents and who stands to benefit most.

  • Greek banks face €12bn capital hole as NPL problem worsens

    The springtime exuberance that allowed the four biggest Greek banks to tap the debt markets for the first time since Greece’s 2010 bail-out is waning fast, writes Graham Bippart.

  • Another CLO expert leaves RBS

    A well-known face on CLO conference panels is the latest departure from Royal Bank of Scotland’s US office in Stamford, Connecticut, as the bank sheds its staff in that market.

  • ISDA moves to protect netted capital during bank resolution

    The International Swaps and Derivatives Association has clarified the meaning of appropriate protection for netted capital under the Bank Recovery and Resolution Directive in response to queries by government officials in the European Union.

  • Diamond Trust Bank over four times subscribed on rights issue

    Kenya's Diamond Trust Bank received applications for 440% of the shares on offer in its KS3.6bn ($40m) rights issue, which was completed on Thursday morning.

  • Bankers need carrots not sticks from Russian borrowers

    With some Russian loan deals progressing despite US and EU sanctions, those borrowers who find support among banks should be make sure they reward that loyalty later. But nobody wants to sour relations, meaning that banks which choose not to lend must have an arm-length list of reasons why they can’t. So Russian borrowers should not take it personally – they are going to need all the friends they can get, so more carrot and less stick is the way to see deals through.

  • EMIR reporting deadline spurs buyside to address data issues

    Buyside firms have used the latest trade reporting deadline under the European Market Infrastructure Regulation as an opportunity to adopt a more strategic approach to reporting requirements, including the implementation of controls to maintain consistent data submissions.

  • Lukoil $1bn loan with US banks signed pre-sanctions, says banker

    Russian oil company Lukoil has agreed a $1bn three year bridge loan with Citi and JP Morgan, it has emerged. But the company signed the deal in early July, said a bank official with knowledge of the matter.

  • Amtek works with investors during summer lull

    Amtek Global Technologies, having approached the loan market for the first time in July, will not set a deadline for commitments on its €305m deal but is using the calmer August weeks to improve lenders' understanding of the credit.

  • France and Germany take new approach to RMB clearing

    The central banks of France and Germany have been working with the People’s Bank of China (PBoC) to set up separate clearing house structures for their renminbi clearing operations, in what would be a potentially ground-breaking development in the European RMB market.

  • Kernel of hope for Ukrainian loans with food oil firm's $230m facility

    Food oil firm Kernel has shown that there is a gap in the market for Ukrainian as well as Russian loan deals, having renewed two pre-export working capital credit facilities with European banks.

  • Total Derivatives: Is a short-end CNY correction due?

    CNY swap rates have dropped sharply over the past month and although the downward momentum is continuing, expectations for a correction are building. Nomura is among those that see scope for a near-term reversal and it has issued a related trade recommendation, writes Maia Ririnui of Total Derivatives.

  • Singapore takes Basel purist line on covered bonds

    The Monetary Authority of Singapore (MAS) is set to follow the Basel purist line in its bank liquidity rules rather than following the European Union in easing the rules to help the covered bond market.

  • ECB influence revealed with Solvency II concessions for ABS

    ABS experts have suggested to GlobalCapital that the latest revisions to ABS capital charges for insurers are a welcome demonstration of European Central Bank influence over regulators. But they insisted the changes will have little impact on the market because they focus on lower-rated assets in a market dominated by triple-A paper.

  • Total Derivatives: CNY 5y leads post-data flattening

    CNY swaps have been well offered on the back of recent weak Chinese economic data. Outperformance in five year swaps has flattened the curve to levels that some players now consider overdone, writes Deirdre Yeung of Total Derivatives.

  • China-Russia ties may lead to ‘political’ loans

    With the US and UK markets largely closed to them, Russian borrowers are turning their sights on Asia. But bankers believe that any loan from a Chinese bank would be politically motivated, meaning that the Chinese loan market would not step up to meet any large scale funding needs.

  • Israeli ECM activity surges as Foamix announces IPO

    There has been a greater volume of equity issuance from Israeli firms since the escalation of the conflict in Gaza than there had been over the rest of 2014.

  • India opens up market with a step in the Reit direction

    After years of discussions, the Securities and Exchange Board of India (Sebi) has finally approved the setting up of real estate investment trusts (Reits) and infrastructure investment trusts (InvITs). Market watchers hailed the move as a step in the right direction, but before issuers and investors go into action, concerns over tax and valuation need to be cleared up, write Rashmi Kumar and Rev Hui.

  • S&P reacts to Hypo Alpe bail-in

    Austria’s decision to wipe out subordinated bond holders of nationalised lender Hypo Alpe Adria — despite a guarantee from the State of Carinthia — triggered an unwanted knock-on effect on Thursday, with rating agency Standard & Poor’s judging that the decision reflected the country's growing reluctance to support its financial institutions in times of crisis.

  • CCB times it to perfection with summer tier two debut

    China Construction Bank Asia (CCB Asia) pulled off a smart move this week, getting ahead of an expected September rush of deals to price its debut Basel III tier two offering on Wednesday. With large volumes of bank capital expected from Chinese banks, getting in early allowed CCB Asia to come inside a rival's curve, writes Virginia Furness.

  • Investors spurn Berau's 'too ambitious' coupon

    Indonesia’s Berau Coal Energy (BCE) pulled a five year non call three deal this week that it brought to market on Monday. Despite feedback that its initial guidance was not generous enough, it decided against revising it — drawing criticism from bankers, writes Isabella Zhong.

  • Holding onto hope: CEEMEA bond volumes could still beat 2013, say bankers

    There is still a small possibility that CEEMEA bond volumes could still beat 2013, said two bankers in London. Other bankers disagreed though and data analysis of volumes and predicted deal numbers indicates a record breaking year is highly unlikely.

  • HCP Global pulls term loan B but US market still likes the look of Asia

    This week's postponement of cosmetics packager HCP Global’s $380m term loan B at first raised fears that US investors were growing weary of Asian credits. But with the delay put down to the macro backdrop rather than any anxiety about the issuer, bankers said Asian names will still find a good reception in the US if they have a story to sell, writes Shruti Chaturvedi.

  • DIFC mulls benchmark sukuk

    Dubai's DIFC Investments is planning to issue its second ever sukuk. The trade could be a benchmark dollar deal of around $400-$500m according to a banker with knowledge of it.

  • Tight spread no problem for Wells' Swiss debut

    Wells Fargo burst into the Swiss franc market with its debut trade in the currency on Wednesday. The issuer’s solid name recognition among local investors and an appreciation for its large retail banking operation allowed the issuer to exceed its original size ambitions despite pricing comfortably inside of other US banks.

  • Bharti Airtel connects for $349m Infratel sale

    The world’s fourth largest mobile service provider, Bharti Airtel, raised Rp21.4bn ($349m) on August 7 by offloading parts of its stake in Bharti Infratel through a trade that was almost double the size the seller originally planned.

  • Boats, buoys and bad investments

    As it typical this time of year, just as you start to enjoy Hong Kong’s summer, in comes the black rain, bringing with it misery, frustration and the complete inability to pick up a taxi anywhere. Several summers ago it was like this. And then the black rain really was a perfect match for my mood.

  • Kolao issues third ever CGIF backed bond

    Korea-listed automobile distributor Kolao Holdings became only the third borrower to make use of the Asian Development Bank’s Credit Guarantee and Investment Facility (CGIF) on Thursday. The Singapore dollar denominated issue was also the company’s first deal in international markets.

  • Alibaba jumbo IPO to hit the road in early Sept

    E-commerce firm Alibaba finally looks ready to price its long-awaited jumbo IPO, after it emerged this week that it will begin meeting investors in early September.

  • Yanggu Xiangguang's new $200m financing launches

    Chinese smelter Yanggu Xiangguang Copper is looking for an offshore prepayment financing loan of $200m and has picked BNP Paribas to lead the deal.

  • ADB launches local currency loan programme

    The Asian Development Bank (ADB) is planning to launch a new loan programme to support local currency financing. The Local Currency Complementary Loan Program will help companies raise funding in Asian domestic currencies for specific projects in areas that support the ADB's key poverty-reduction goals.

  • Springland downs shutters on loan at $320m with 17

    Chinese department store operator Springland International Holdings has wrapped up its fundraising at $320m, with 15 banks joining during syndication. The three year facility, which was launched at $250m, was oversubscribed.

  • Return to Capital in the Twenty-First Century

    How can you follow the biggest economic blockbuster of the decade? Gary Jenkins thinks the sequel should tackle some unfinished business.

  • Pakistan picks banks for dollar sukuk despite high yields

    Pakistan has mandated four banks to arrange its second ever dollar denominated sukuk, despite its conventional bonds having lost 3pts-4pts in cash since the start of June.

  • Four sign up for Sime Darby auto spin-off

    Malaysian conglomerate Sime Darby has mandated four banks to work on the IPO of its automobile unit, Sime Darby Motors, according to bankers close to the transaction.

  • Amvig HK$2.6bn opens for senior syndication

    Cigarette package printer Amvig Holdings has opened up an HK$2.6bn ($335m) refinancing into senior syndication. The deal has one mandated lead arranger and bookrunner and is offering banks the MLA title.

  • Reinhart to join revamped UBS DCM team

    Sam Reinhart will join UBS as head of banks and specialty finance for DCM Americas. He joins from Barclays, where he covered US regional banks, Canadian banks and insurance companies, as well as specialty finance and business development companies.

  • United Laboratories brews new loan with Fubon Bank

    Hong Kong-listed pharmaceuticals company United Laboratories has picked Fubon Bank to arrange a syndicated loan and has sent out invitations for the fundraising.

  • Delhi Airport mandates four for debut international trip

    Delhi International Airport Limited (Dial) is preparing to join the procession of Indian high yield names making their debut in the international bond market, after picking for banks for a dollar deal.

  • Shanghai Electric prices divisive dollar bond

    Shanghai Electric priced its maiden bond on August 7, raising $500m with a five year offering. A high proportion of the book went to European investors, who saw better value in the underlying credit than Asian investors, who deemed it to be expensive for a regional name, according to bankers.

  • No true comps for China Vast Industrial’s $159m debut

    China Vast Industrial Urban Development Company opened its HK$1.23bn ($159m) IPO on August 12, with books fully covered ahead of launch. But the absence of direct comparables means that investors are buying into a one-of-a-kind story.

  • AIDC reaches for the stars with $207m IPO

    State-owned Aerospace Industrial Development Corp (AIDC) took home the title of the largest Taiwanese IPO in eight years after raising NT$6.22bn ($207m) on August 7.

  • Mercuria Energy looks to refinance $1bn Asian loan

    The Asian operation of commodity major Mercuria Energy Group is in talks with banks to refinance a $1bn loan it raised in November 2013.

  • Boom times are back for private equity bankers as IPOs stack up

    Financial sponsor bankers, once the rock stars of finance, have fallen on hard times. But this year there are signs of a return to the glory days, writes David Rothnie.

  • London biotech firm to fund growth with cap hike

    UK biotech firm Retroscreen Virology on Wednesday raised £33.6m through a sale of shares to new and existing investors that will allow the firm to fund its upcoming projects.

  • Quirón completes syndication of €2.15bn loan

    Spanish private hospital operator Grupo Hospitalario Quirón has signed off the €2.15bn loan that backs its merger with rival chain Idcsalud, shrugging off market volatility to win favourable borrower's terms.

  • Fitch to cap 'new and untested' Chinese autos at AA

    Fitch has said it will cap the international rating of Chinese auto ABS transactions at AA because of the market’s immaturity, but it is expecting a rapid expansion in the next few years as financing products penetrate further into the world’s biggest car market.

  • Minerva makes 10 year meaty with tap

    Brazilian meatpacker Minerva took advantage of an empty Latin America new issue market to fetch a well oversubscribed tap of its outstanding 2023s with a narrow premium on Thursday, increasing the planned size of the tap in the process.

  • Echoes of pre-crisis ratings battles as S&P tweak offers CLO hope

    Standard & Poor’s may have handed bank investors — at loggerheads with CLO equity holders over implementation of the Volcker rule — a powerful advantage after the rating agency tweaked its corporate recovery rating process. But some see it as a thinly veiled attempt to regain market share from Moody’s, writes Will Caiger-Smith.

  • Ukraine gets Kernel of hope in $230m food oil firm loan

    Food oil firm Kernel has shown there is a gap in the market for Ukrainian as well as Russian loan deals, having renewed two pre-export working capital credit facilities with European banks.

  • Investors seek safety in IG corps as Bund yields vanish

    Investment grade corporate bonds were the only asset class ECM Asset Management gave an increased allocation in its most recent update to its model portfolio, reflecting resilience in the face of geopolitical instability and reduced growth forecasts for eurozone countries.

  • Lloyds goes for securitization growth as RBS’s structured exodus accelerates

    Lloyds Banking Group is continuing its push into the US credit and asset-backed securities markets but is taking a very different approach to that of Royal Bank of Scotland, whose Connecticut office had several more structured credit departures this week amid its retrenchment in the country.

  • Corporate bonds overvalued, CFA survey finds

    Investment grade corporate bonds are overvalued, said nearly three quarters of analysts and investors polled by CFA Society of the UK. However, don't expect wider spreads yet, said bankers.

  • Investors vote with feet in response to subprime auto probe

    Subprime auto investors are responding to US federal inquiries into origination and securitization standards by becoming increasingly choosy about the notes they hold. Asset-backed paper from GM Financial's subprime auto unit AmeriCredit traded at a discount on Monday in response to the Justice Department's focus on the sector.

  • Wary ECM investors get picky over players involved in upcoming IPOs

    Equity capital markets investors are likely to be increasingly picky about the deals they participate in when the IPO market reopens in September, but rather than just being selective about the sectors or locations of the issuers, accounts are looking closely at which banks and advisors are involved in the deals.

  • Moody’s says US bank regulators will 'turn up heat on leveraged lending' in next SNC review of levloans

    US regulators will likely introduce stricter enforcement of leveraged lending rules in their annual review of syndicated loan practices, Moody’s said on Tuesday.

  • Pfandbriefe LTV disclosure leaves analysts baffled

    German Pfandbrief issuers have been obliged to publish loan to value (LTV) ratios for their cover pools in the wake of an amendment to the Pfandbrief Act. The ratios are low and give the impression of low risk but the idiosyncratic way they are calculated means the data is of limited use.

  • Periphery tightens as woeful growth stats boost dovish hopes

    Eurozone periphery sovereigns were big winners in advance of bill auctions next week, as their spreads tightened versus Bunds — despite German yields hitting record lows — following miserable growth revealed in second quarter GDP data for the currency bloc.

  • The market is the loser in the rating agency war

    Standard & Poor’s has tweaked its corporate loan recovery ratings, indirectly affecting CLO recovery value tests and prompting managers to consider returning to the agency after preferring Moody’s. What a coincidence.

  • FHFA requests comment on single security

    The Federal Housing Finance Agency on Tuesday released a request for public comment about a single security type to be issued by government sponsored enterprises Fannie Mae and Freddie Mac.

  • New pref shares may boost tier one ratios, but Russian banks need more

    With Russian banks increasingly worried about their capital structures, their newly approved right to convert subordinated bonds received from VEB in 2008 into preferred shares may ease the pressure, says Fitch Ratings. However, the rating agency stresses that further measures may be needed to support the banks’ capitalisation in the longer term.

  • Total victory in Swiss return

    French oil company Total returned to the Swiss franc market in style on Tuesday, quadrupling its original size ambition as investors rushed to place orders for the issuer’s first print in the currency for more than five years.

  • RBS continues cuts into US mortgage team

    At least two more mortgage experts have left Royal Bank of Scotland in Connecticut as the bank shrinks its US footprint across multiple businesses.

  • German contraction fortifies high grade credit

    Germany’s worse-than-expected GDP figures were bad news but investment grade bond yields remained flat, or by some accounts even tightened, on the release of the data on Thursday morning.

  • South Carolina sells student loan ABS

    South Carolina Student Loan Corporation has sold a $501m student loan asset-backed security, according to rating agencies.

  • ICAP appoints EBS head of Asia Pacific sales

    Simon Winn, ex-head of sales for Asia at 360T, has joined ICAP’s EBS business as head of sales Asia Pacific, based in Hong Kong.

  • Quirón completes syndication of €2.15bn loan

    Spanish private hospital operator Grupo Hospitalario Quirón has signed off the €2.15bn loan that backs its merger with rival chain Idcsalud, shrugging off market volatility to win favourable borrower's terms.

  • Moody’s says US bank regulators will 'turn up heat on leveraged lending'

    US regulators will likely introduce stricter enforcement of leveraged lending rules in their annual review of syndicated loan practices, Moody’s said in a report on Tuesday.

  • Traiana expands post-trade matching services

    Traiana has expanded its post-trade cross-asset allocation services for buy- and sell-side clients with a new service called Harmony Securities. The service has been designed to meet new processing requirements and regulatory changes such as T+2 settlement.

  • CS highlights demand at short end in Swissies

    Credit Suisse received an enthusiastic response from investors for a rare appearance in its home currency on Tuesday, outstripping its ambitions for volume as orders poured in for the dual tranche print of short dated floating rate notes.

  • Wells Fargo to debut in reawakened Swiss market

    The Swiss franc market’s summer hiatus looks to be coming to an early end with Wells Fargo set to sell its debut Swiss franc trade on Wednesday afternoon, opting for a dual tranche print. The deal adds to a recent spate of issuance, which stands in contrast to a moribund primary market in euros.

  • América Móvil to hold global local dealers to account

    Carlos Slim's telecoms company, América Móvil has hired an advisory firm to evaluate the performance of the market makers in its innovative peso-denominated bond programme, a source at the Mexican company said.

  • Portfolio managers see investment grade corporates as safe haven as Bund yields vanish

    Investment grade corporate bonds were the only asset class given an increased allocation by ECM Asset Management in its most recent update to its model portfolio, reflecting the resilience of the securities in the face of geopolitical instability in Ukraine and the Middle East and reduced growth forecasts for eurozone countries.

  • EM braced for September boom

    The CEEMEA bond market has ground to a halt, with bankers now set to take it easy until September. But what a pipeline is building — one big emerging markets bank said they are expecting to bring between five and 10 deals in September if the market is calm, while another described his pipeline as “two handfuls'” worth.

  • Stable funding is the key for CEE banks, says EBRD

    The European Bank for Reconstruction and Development has said in a research note that stable funding for global banks in central and eastern Europe is the biggest factor determining whether they benefit local economies.

  • GFH’s new high yield sukuk likely to be a hit despite low profitability

    Gulf Finance House is planning to end a seven year sukuk absence with a $200m transaction which should pique the interest of high yield accounts and hedge funds, said one investor in London.

  • CLO experts leave RBS for CIFC

    CIFC Asset Management has picked up two CLO bankers from Royal Bank of Scotland's US headquarters in Stamford, Connecticut, as the UK government-owned bank retrenches from the market.

  • Polish oil firm launches $320m rights issue into quiet CEE markets

    Polish oil refiner Lotos is set to raise Z1bn ($318m) through a rights issue next month, in what will be a rare example of Polish ECM business after a quiet year so far for eastern Europe.

  • Conversion of VEB sub-loans may boost tier one capital ratios, but Russian banks need more measures warns Fitch

    With Russian banks facing increasing constraints to their capital structures under the new slew of sanctions from the US and EU, Russian banks’ newly allowed ability to convert subordinated bonds received from VEB in 2008 into preferred shares may ease the pressure, according to a new report from Fitch Ratings. However, the rating agency stresses that further measures may be needed to support the banks’ capitalisation in the longer term.

  • Finally on the road: Alibaba to start IPO meetings in early Sept

    E-commerce giant Alibaba finally looks ready to price its long-awaited jumbo IPO with news emerging Wednesday that it is expected to begin a roadshow in the first week of September.

  • Italian recession hits pharma ABS

    Italy’s moribund economy, which officially slipped back into recession this week, is taking a heavy toll on the country’s pharmacists with 25 of the 146 borrowers in the Pharma Finance 3 SME ABS having now defaulted.

  • Alcentra presses on through CLO junior pressure

    Alcentra may be next to tackle the primary European CLO market after releasing the structure of its third euro denominated deal of the year, but the manager will be facing tougher conditions than it did for its two previous efforts following a material and sustained widening in issuance spreads on junior tranches.

  • Evraz pays 350bp as it reopens Russian loans with $425m facility

    Proof of the loan market being still open to Russian borrowers has come, with steelmaker Evraz signing a $425m five year pre-export credit facility with banks.

  • Press Metal to double share capital with rights issue

    Aluminum products maker Press Metal is planning to double its share capital via a one for one rights issue that is expected to come by the fourth quarter, the Malaysian company said on August 12.

  • Russian threats to bankers are empty

    Banks are under pressure to lend to Russian borrowers. But though bankers have grown accustomed to moving mountains for the Russian issuers, they should not fear the repercussions if this time they cannot.

  • All covered, but no comps for China Vast $159m IPO

    China Vast Industrial Urban Development Company opened its HK$1.23bn ($159m) IPO on Tuesday, August 12, with books fully covered ahead of launch. But the absence of direct comparables means that investors are buying into a one-of-a-kind story.

  • Volatile levfin settles into summer lull

    Rebellion hit the leveraged finance market last week, with investors pushing back on borrowers’ tight prices and aggressive terms. Although some deals are still being finalised, that volatility has been followed by a lull in activity after weeks of strong supply.

  • FIG Issuers wait for volatility and thin trading to pass

    The lack of liquidity in FIG secondary markets has market players debating whether this is just summer-as-usual or whether something more sinister is afoot, with growing unease about rate rises, European economic growth and geopolitical instability causing more investors to dwell on the timing, and availability, of an exit form fixed income.

  • SSAs to hit brakes on supply in second half

    Several sovereign, supranational and agency issuers have begun working on plans to bring benchmarks after the summer break, but supply is set to be lower in the second half of this year than in the same period last year as issuers are well funded and reluctant to take on the cost of holding cash on their balance sheets while rates are so low. Some major borrowers have already dismissed the prospect of pre-funding.

  • Commodity trader Mercuria in talks for refi loan

    The Asian operation of commodity major Mercuria Energy Group is in talks with banks to refinance a $1bn loan it raised in November 2013.

  • Buoyant Cifi to meet bond investors for NDR

    Chinese real estate developer Cifi Holdings will be kicking off a non-deal roadshow in Asia later this week after announcing strong mid-year financial results on Tuesday, August 12.

  • Yanggu Xiangguang Copper mines for $200m three year

    Chinese smelter Yanggu Xiangguang Copper is looking for an offshore prepayment financing loan of $200m and has picked BNP Paribas to lead the deal.

  • Sime Darby mandates four for Auto spin-off

    Malaysian conglomerate Sime Darby has mandated four banks to work on the IPO of its automobile unit, Sime Darby Motors, according to bankers close to the transaction.

  • CCB Asia opens books on maiden tier two bond

    China Construction Bank Asia (CCB Asia) has opened guidance on its first Basel III compliant bank capital bond after meeting investors last week. CCB Asia’s parent, China Construction Bank, is also in the process of issuing a tier two bond in the domestic market.

  • Fitch caps 'untested' Chinese autos at AA

    Fitch has said it will cap the international rating of Chinese auto ABS transactions at AA because of the market’s immaturity, but it is expecting a rapid expansion in the next few years as financing products penetrate further into the world’s biggest car market.

  • Mixed options flows on iTraxx Main displays positive IG outlook

    Fast and real money accounts have been buying payer spreads on iTraxx Main this week with August and September expiries and strikes between 70bp and 85bp, while other funds have been seen selling options via payers, reflecting mixed credit options flows.

  • Guidance ranges set for Honda and VW

    Syndicates have issued price guidance on new deals this week for Honda Motor Company and Volkswagen Financial Services as the August pipeline continues to slowly churn out deals.

  • Investors bullish on iTraxx Sen Fin ahead of Sept

    Investors have been taking profit on relative value trades with a bearish bias going by long risk the iTraxx Senior Financials (Sen Fin) index and short risk iTraxx Main index, while maintaining a bullish bias on Sen Fin ahead of September, when the launch of new credit default swap indices based on revised CDS definitions could see old Sen Fin contracts outperform.

  • The market is the loser in the ratings agency war

    Standard & Poor’s has tweaked its corporate loan recovery ratings, indirectly affecting CLO recovery value tests and prompting managers to consider returning to the agency after moving to Moody’s. What a coincidence…

  • Bayview preps latest NPL RMBS

    Bayview Financial and Bank of America Merrill Lynch are planning a new $93.5m non-performing loan securitization, which could be priced this week.

  • Sorry CBs, it's just not your year

    On the surface, 2014 looked to have the makings of a vintage year for Asia’s equity-linked market. But judged against bankers’ predictions, it seems to be heading for another disappointment. For a year that promised so much, activity has been lumpy and there’s been plenty to derail the market along the way.

  • Kenya infrastructure heats up as KPLC and KPC loans progress

    Kenya is ramping up its infrastructure financing drive, with both Kenya Pipeline Co. (KPC) and Kenya Power and Lighting Company (KPLC) pushing forward with long dated loan plans. The deals come amid a spate of Kenyan projects that look set to benefit not only the country itself but its neighbours in East Africa.

  • Eastern Europe to swerve busy ECM theme in September

    Bankers still at their desks on Tuesday were preparing for a busy autumn across most of Europe. But eastern Europe is likely to extend its drought of issuance.

  • Ferrexpo says year's financing done with $41m export credits

    Ukrainian iron miner Ferrexpo has said it has no further funding requirements for the year, having revealed it raised $41m in the first half through three “competitively priced” export financing credits paying less than 3% each.

  • Rhön-Klinikum trades up after €65.5m block trade

    Berenberg and Goldman Sachs led the block sale of 2.913m shares in German healthcare provider Rhön-Klinikum on Monday night, raising €65.5m for a Swedish pension provider.

  • EQT remains confident in strength of €845m BvD deal

    A highly leveraged acquisition loan from Bureau van Dijk, expected to launch next month to back the company’s takeover by EQT, has attracted scrutiny following a week of volatility in the leveraged loan market. But existing lenders to the company have not deserted the borrower, a source at the private equity firm told GlobalCapital on Tuesday.

  • CDS notional climbs for second consecutive week

    Overall credit default swap notional that was reported to swap data repositories last week increased by 16% from the previous week, according to data from the International Swaps and Derivatives Association. This follows a sharp increase of 50% from the week prior. Overall interest rates derivatives trading that was reported, however, declined by 9%.

  • Bankers: Italian corporates could shed periphery label

    As the premium paid by Italian corporate issuers dwindled in the approach to summer, senior bankers suggested that the periphery designation was no longer appropriate. The country's official return to recession last week did little to change their minds.

  • Three ways the trading environment will evolve, and why

    The next five years will continue to be a time of adjustment as sell- and buy-side firms get used to the realities of the financial markets, post-crisis. Change will be the only constant – and with change, comes opportunity.

  • China and Asean trade and investment flows to surge: HSBC

    Investment and trade flows between China and Southeast Asia are set to keep rising on the back of expanding economies and trade agreements, the bank predicts.

  • Shrunken Toro CLO highlights investor risk fears

    Chenavari Investment Managers’ downsized European CLO 2.0 debut was the latest in a clutch of ABS transactions that have had a hard time placing riskier paper in recent weeks, as a broad sell-off across markets has hit the primary market for securitizations in Europe.

  • MBank Hipoteczny sells largest ever Polish currency covered bond

    Poland’s MBank Hipoteczny has issued its fifth and sixth covered bond deals of the year which combined to form the largest ever issue denominated in Polish zloty. The self-led deal will benefit from the new Polish covered bond law, which should be implemented in January 2015 and which is likely to offer a considerable rating uplift, and that boosted demand sufficiently for the leads to issue a size bigger than planned.

  • Akbank set to sign loan on Thursday

    Akbank is set to sign a loan with banks this week on Thursday that will set the tone for Turkey’s second wave of bank refinancings.

  • Russia bonds — 2014 maturities and potential for refinancing

    Russian banks and corporates have around $5.9bn of international bonds maturing before the end of this year. The list includes paper from Sberbank and Gazprombank which are both sanctioned by the US and EU. Origination bankers evaluate the likely methods of refinancing.

  • HSBC hires trade finance business development head from StanChart

    The UK bank has appointed Sriram Muthukrishnan from Standard Chartered to be its new head of business development for trade and receivables finance in Asia.

  • Crédit Agricole targets structured ABCP from Europe shelf

    Crédit Agricole has adapted the documentation of its European asset backed commercial paper (ABCP) programme to enable it to issue floating rate structured notes, in what Moody’s said is the first such move by a bank sponsored conduit outside the US.

  • Philippines launches real time RMB payment system

    Six Philippine banks, in collaboration with Bank of China Manila branch (BoC Manila), have launched an RMB transfer service through the Philippine Dealing System (PDS) Group platform.

  • Pakistan picks banks for second dollar sukuk despite elevated yields

    Pakistan has mandated four banks to arrange it’s second ever dollar denominated sukuk despite its conventional bonds having lost 3-4pts in cash since the start of June.

  • AT1 secondary market enjoys calm patch after volatile spell

    The secondary market for additional tier one (AT1) paper benefited from a small relief rally on Monday as geopolitical concerns eased and equities made gains, followed by an unusually quiet open on Tuesday given the high volatility of recent sessions.

  • Uni-President to revisit Formosa market next week

    Uni-President China Holdings, a Taiwanese maker of instant noodles and snacks, is planning to revisit the Formosa bond market next week. A deal of up to Rmb1bn (US$162m) is being targeted for August 19, with three and five year tranches being considered, according to bankers.

  • TSH, CB Industrial plant seeds for rights issues

    Two Malaysian companies in the plantation sector are prepping rights issues which are due to take place by the fourth quarter of the year as they look to improve the liquidity of their shares.

  • Total Derivatives: All eyes on one year CNY swap

    After opening better offered on Tuesday morning, CNY swaps picked up a domestic bid at lower levels. Traders say the one year swap is being closely watched given it is currently sitting just above a key psychological level, writes Deirdre Yeung of Total Derivatives.

  • Mexican bankers eye new era as energy bill passed

    The mood among investment bankers in Mexico City is increasingly buoyant as Mexican president Enrique Peña Nieto signed into law energy reforms that are expected to provide a long term lift to the country’s growth and opportunities for financiers operating in the country.

  • China Vast Industrial seeks place on HKEx

    Industrial town developer China Vast Industrial Urban Development Company is seeking to list on the Hong Kong Stock Exchange having filed its IPO application to the city’s regulator on August 11.

  • Petron borrowing seen increasing to $400m

    Philippine oil refining company Petron Corp’s loan that was launched into general at $300m, is likely to increase to $400m after getting a good response.

  • Total Derivatives: PBoC backs offers; CNY 1y may correct up

    The latest targeted easing move by the People's Bank of China (PBoC) has helped to ease liquidity conditions. This lowered the repo fixing on Monday and backed good receiving in CNY swaps. At current levels, though, an upward correction in short-end rates is considered likely in the near-term, writes Deirdre Yeung of Total Derivatives.

  • United Lab preps new syndication

    Hong Kong listed pharmaceutical company United Laboratories has picked Fubon Bank to arrange a syndicated loan and has sent out invitations for the fundraising.

  • Sterling options traded ahead of BoE inflation report

    Market participants have been trading downside options on the sterling against the US dollar ahead of Wednesday’s inflation report from the Bank of England.

  • AmeriCredit trades at a discount following Justice subpoena

    Asset-backed paper from GM Financial’s subprime auto unit AmeriCredit traded at a discount on Monday in response to the Justice Department's focus on the sector.

  • When you plan to fail, you fail to plan

    The US Federal Reserve told 11 banks last week that they had failed utterly to draft so called living wills — plans for how they would raise capital in a crisis and how they could be resolved in a hurry if they go under. It was right, they had failed. But the whole concept of living wills is shonky.

  • ISDA: Dealer derivs activity vital for liquidity, customer hedging

    Derivatives volume pertaining to trades between reporting dealers is critical for market liquidity and the facilitation of client trades as it allows end users to put on risk-reducing and cost-effective hedges, according to a research study from the International Swaps and Derivatives Association.

  • Ignis veteran leaves for TwentyFour AM

    Ignis Asset Management’s former head of credit is leaving the firm to join Twenty Four Asset Management, following Ignis’s takeover by Standard Life last month.

  • Subprime start-ups at risk if auto investigation widens

    Smaller subprime auto lenders in the US could face increased credit tiering in the asset backed securities market if investigations into GM Financial and Santander Consumer USA’s lending standards continue to disquiet investors, said analysts on Monday.

  • Billion dollar deals pick up with Honda, VW

    Honda Motor Company and Volkswagen Financial Services are preparing to sell auto securitizations this week of over $1bn, following a brief slowdown in benchmark-sized transactions.

  • As levfin market falters, banks doubt logic of leverage on BvD deal

    Bankers and investors are casting an increasingly critical eye on aggressive deals scheduled for launch in September, as relentless fund outflows indicate investors might not commit to risky paper as willingly as they had in the first half of 2014.

  • EMT completes $325m cov-lite loan

    Element Materials Technology, the US materials tester owned by 3i, has completed syndication of its $325m cov-lite loan.

  • Corporate bonds increasingly overvalued, CFA survey finds

    Investment grade corporate bonds are overvalued, according to 72% of analysts and investors polled by CFA Society of the UK. However, bankers do not expect this to translate into wider spreads.

  • Expro's $1.5bn loan flexed up, ready to allocate

    Expro, the UK oil and gas well testing provider, will allocate its $1.5bn loan on Monday, after widening price guidance on the deal, a common sight in the levloan market since last week.

  • Competition hots up in record-breaking ECM year

    Bookrunner league tables have become increasingly closely-fought in 2014, as banks strive to win an increasing share of record-breaking volumes of European ECM.

  • Gazprombank pays down $1.2bn loan from existing funds

    Gazprombank has repaid a $1.2bn three year term loan on time that it signed with international banks in August 2011, without the need to raise new debt.

  • Slavneft loan gets US bank boost while Evraz looks to sign

    In an encouraging sign for Russian loans, a US bank remains involved in oil refinery Slavneft Yanos’s slow-moving $500m loan plans, while steel frim Evraz looks set to sign the mandate for its $900m loan this week.

  • BNP Paribas grabs RBS hybrid capital director

    BNP Paribas is set to fill the spot left by the recent departure of Vikram Gandhi from the bank’s hybrid capital DCM team.

  • Greek banks have €12bn capital hole, and it is probably growing—SNL

    The four biggest Greek banks have a €12bn capital hole between them, and it’s likely to get bigger as non-performing loan ratios trend up in the country, according to SNL Financial.

  • Moody’s supports CFF’s MBS transfer

    Moody’s has backed a transfer of relatively risky assets from Crédit Foncier de France (CFF) to its parent BPCE as credit positive.

  • Pub restructuring hits latest hiccup

    The launch of a crucial restructuring of Punch Taverns securitizations was delayed again on Monday after the pub group’s management said it needed more time to work with certain stakeholders.

  • Scope highlights positives of BES fiasco

    The swift breakup of Banco Espírito Santo highlights the improvements made in bank resolution since the financial crisis and should encourage investors regarding the robustness of the EU’s bank resolution process, according to ratings agency Scope Ratings.

  • HCP Global delays $380m US targeted loan

    Cosmetics packager HCP Global has postponed its US targeted syndication for $380m, with bankers attributing the decision to a summer lull and a tough US market. A new timeline for the loan was being worked out, said bankers close to the deal.

  • 4Finance pays double digits in rocky week

    4Finance, a Latvian short-term lender with operations across Europe, sold its $200m five year put three bond on Friday despite a rocky week in EM and high yield secondary trading.

  • Luxembourg plans sukuk roadshow

    Luxembourg, which is gearing up to sell the first euro denominated sovereign sukuk, is set to meet investors in Asia, Europe and the Middle East at the end of September. It has hired a pair of banks to lead the project.

  • F&P prices rare NZ card securitization

    Fisher & Paykel Finance has priced NZ$283.25m of credit card ABS, the first time credit card receivables have been used as collateral for a transaction in Australia or New Zealand for a number of years.

  • Scotch for the road?

    Sometimes Blog finds itself in the company of debt bankers with real class. Not just the kind of autodidactic epicure who knows which knife and fork to use and how to sniff around a wine list (skills which even the humble-born develop through years of client relations) but genuine old money aristocracy.

  • CPD – constant professional distress or cheesy pepperoni delux?

    The highs and lows of being a leveraged loans banker: You have just given a stellar end of year review presentation to the team when you realise your enthusiasm for the exercise has meant you are going to miss your compulsory Continuing Professional Development seminar.

  • CLO fund eyes role as euro originator as deal flow improves

    Fair Oaks Income Fund, the first CLO fund to float on the London Stock Exchange since the financial crisis, has said developments in the European market have opened the door to it becoming an originator.

  • Hanjin $184m rights issue oversubscribed

    South Korean Hanjin Heavy Industries and Construction’s W191.4bn ($184.4m) rights issue has proved a hit with shareholders, with the transaction oversubscribed by the time books closed.

  • Corps in Taiwan to step up RMB use in payments, says BAML

    Big local and multinational companies operating in Taiwan are set to increase their use of offshore renminbi for payments, according to a new survey by Bank of America Merrill Lynch (BAML).

  • Updated: Books remain open for Berau Coal's $450m 5NC3

    Indonesia’s Berau Capital Resources (BCE) II started receiving bids for a $450m five year non call three bond on Monday, August 11, as it looks to refinance an outstanding 2015 paper that is identical in size. The following day, books remained open despite the term sheet having indicated that the deal was due to price overnight Monday.

  • Formosa Industries raises $110m with club of four

    Vietnam based polyester product manufacturer Formosa Industries, a subsidiary of Taiwanese conglomerate Formosa Plastics Group, has wound up a $110m offshore borrowing with a club of four banks.

  • Delhi Airport mandates four for debut international trip

    Delhi International Airport Limited (Dial) is preparing to join the procession of Indian high yield names making their debut in the international bond market after picking for banks for a dollar deal.

  • Russia and China sign draft currency swap agreement

    The People’s Bank of China (PBoC) and the Central Bank of the Russian Federation (CBR) have signed a draft document in preparation for a currency swap line between the two countries.

  • Kumpulan opens $145m rights issue

    Malaysian infrastructure and construction company Kumpulan Europlus Berhad (KEB) has launched a three for four rights issue, in a transaction set to raise MR464.1m ($144.6m).

  • Public Bank slips 4% following jumbo rights issue

    The shares of Malaysia’s Public Bank was down 4% following the completion of the lender’s jumbo MR4.83bn ($1.5bn) one for 10 rights issue - the largest ECM trade in the country so far this year.

  • US RMB payments get a helping hand as BOCHK extends clearing hours

    Bank of China (Hong Kong), the official renminbi clearing bank in Hong Kong, will extend the daily service hours of its RMB clearing system to 20.5 hours from 15 from October 1, the bank said late on Friday August 8. The move is aimed at meeting the needs of US parties in particular.

  • Argentina mediator pledges further negotiations amid stalemate

    Argentina’s default on exchange bonds on July 30 has inspired in Argentina no inclination to budge from its position that it will refuse to pay holdout creditors more than the 30 cents on the dollar that exchange bondholders received in 2005 and 2010.

  • India gives go-ahead for Reits and infrastructure funds

    The Securities and Exchange Board of India approved the regulations for real estate investment trusts (Reit) and infrastructure funds on August 10 as the regulator looks to reduce the pressure on its banking system.

  • Credit Suisse veteran to lead new hires at Element

    Element Financial Corporation has added six US structured products experts to its transportation finance team in Connecticut, including a managing director from Credit Suisse.

  • Asiamoney Best Domestic Bank Awards 2014: Vietnam

    Every year we choose which are the standout financial institutions in each major Asian market. In Vietnam, Military Bank rises above a lacklustre field of competition for best getting a handle of its costs and bad debts.

  • Huvepharma swerves investor pushback and prices loan tight

    Huvepharma, the Bulgarian animal drugs firm, has tightened pricing on its €180m six year term loan ‘B’, in a move that goes against the trend of investor pushback in the leveraged loan market.

  • Only the loan-ly: VTB claims funding still possible despite sanction isolation

    VTB, one of the Russian banks which has been sanctioned by the US and EU, has said that despite the restrictions put in place international banks are still helping to finance the firm.

  • Och-Ziff helps propel CLOs towards $70bn mark

    Hedge fund giant Och-Ziff Capital Management Group priced the eighth CLO off its Och-Ziff Loan Management platform on Thursday, helping push new US CLO issuance this year to date to around $67.5bn, according to GlobalCapital data.

  • Spreads take beating on geopolitical fears

    The authorization of air strikes on Iraqi militants by US president Barack Obama, alongside lingering jitters about the crisis in the Ukraine, saw a sell-off in Asian bonds overnight Thursday. Magnified by thin summer trading activity, the spike in risk aversion brought Asian credit spreads 10bp to 15bp wider than where they were a week ago.

  • iDreamSky wins the game with bigger $141.5m IPO

    Chinese mobile game distributor iDreamSky has raised $141.5m from its Nasdaq IPO, with the deal oversubscribed just hours after books opened. The strong interest from investors meant that the leads not only managed to price the IPO above the guidance offered, but they were also forced put a cap on order size.

  • Shanghai Electric hits spot for European investors

    Shanghai Electric priced its maiden bond on Thursday, raising $500m with a five year offering. A high proportion of the book went to European investors who saw better value in the underlying credit than Asian investors who deemed it to be expensive for a regional name, according to bankers.

  • RMB option innovations prepare Chinese corps for complex FX hedging

    Chinese corporates have rushed to take advantage of a recent change to regulations governing their use of currency derivatives, with domestic and international banks lining up to announce deals for clients under the new rules. This new liberalisation, which took effect on August 1, is a big step in the development of China’s FX market, bankers have told GlobalRMB.

  • Bharti Airtel boost coffers with bigger $349m Infratel sale

    The world’s fourth largest mobile service provider, Bharti Airtel, raised Rp21.4bn ($349m) on August 7 by offloading parts of its stake in Bharti Infratel via a trade that was close to double the size of what the seller originally planned.

  • Malaysia Airlines to de-list on Khazanah buy

    Malaysian Airline System, the struggling flight operator which has suffered two plane disasters this year, is to de-list from the stock exchange after sovereign wealth fund Khazanah Nasional said it will buy out minority shareholders.

  • RMB round-up: August 8, 2014

    In this round-up, Standard Chartered's Renminbi Globalisation Index rose marginally in June, the Hong Kong Monetary Authority's chief executive Norman Chan believes Hong Kong will continue to benefit from the liberalisation of the Mainland’s financial sector, and Deutsche Bank analysts say annual bilateral trade between China and the European Union could rise to €660bn ($886bn) by 2024.

  • AIDC flies high with $207m Taiwan IPO

    State-owned Aerospace Industrial Development Corp (AIDC) took home the title of the largest Taiwanese IPO in eight years after raising NT$6.22bn ($207m) on August 7.

  • Amvig rolls out HK$2.6bn four year in senior

    Cigarette package printer Amvig Holdings has opened up an HK$2.6bn ($335m) refinancing into senior syndication. The deal has one mandated lead arranger and bookrunner and is offering banks the MLA title in senior.

  • BMW revisits SA autos

    BMW Finance is set to return to the South African auto loan securitization shelf it set up with Standard Bank in 2011 after having a dual tranche transaction rated by Moody’s.

  • Chenavari to price debut as CLO juniors weaken

    Chenavari Investment Managers will look to price its debut European CLO 2.0 on Friday, defying weaker trading in a more illiquid summer market that has sent junior euro CLO tranches materially wider.

  • F&P preps first antipodean credit card securitization

    Fisher & Paykel Finance has been preparing a NZ$283.25m credit card ABS which arranger Westpac New Zealand says is the first term securitization of credit card receivables in either New Zealand or Australia.

  • Findeter grants banker wishes as global peso bond trades up

    Bankers started the week surprised at Findeter’s decision to sell its debut international deal in pesos, while some investors unwilling to take local currency risk lamented the chance to get their hands on some rare new Colombian paper.

  • Ambitious Paraguay sells first long bond

    Landlocked South American sovereign Paraguay surprised some with its timing by issuing its second ever international bond on Monday. But though bankers away from the deal said the 30 year deal created a steep curve, others said the borrower’s strategy was spot on.

  • Peers slam “aggressive” Westfield CMBS as leads blame investor regs fear

    Crédit Agricole and Deutsche Bank postponed Westfield's £750m CMBS this week, claiming some investors were concerned with a lack of risk retention in the deal’s structure. But market participants scoffed at the suggestion and said the pricing was aggressive and the timing poor, suggesting the leads were simply scared of not getting the deal away.

  • A boon for oil and gas start-ups

    The UK’s Financial Conduct Authority has decided that if you don’t understand what you are buying, you had better have a lot of money. This week the City watchdog banned the sale of contingent convertible bonds (CoCos) to retail investors for one year, arguing that issuing banks have an “unusually broad discretion” to halt the payment of coupons on the bonds.

  • CAF dollar return continues EM to SSA transition plan

    The chief financial officer of Latin American development bank Corporación Andina de Fomento (CAF) said the lender’s return to the public dollar markets on Tuesday for the first time in two years showed its new-found appeal to SSA-dedicated bond investors.

  • Hot air fear intensifies as ECB seeks ABS consultant

    More market participants are starting to question the European Central Bank’s ability to successfully revive the European asset-backed securities market after another Mario Draghi press conference went by without further detail on Thursday, except for the president saying a consultant would be hired to advise on its promised ABS purchase programme.

  • Covered supply to fade after busy September as TLTRO sets in

    Issuers expect that covered bond issuance after the summer break will be front-loaded, with a busy September likely to be followed by a quiet fourth quarter.

  • Synchrony prints debut blow-out as IG demand holds strong

    Any fears about the strength of demand for investment grade US FIG paper were banished when GE-offshoot Synchrony Financial made a scintillating debut this week.

  • Project LatAm: Natixis looks to capitalise on LatAm infrastructure boom

    Ask LatAm DCM bankers about their competition, and Natixis is not the first name on many lips. But the head of the French bank’s one year-old Latin America platform reckons 12 months of solid progress making a mark on the lending league tables have put the institution in a good position to make the most of recent hires across several product areas.

  • RPM targets securitization with new non-QM line

    US lender RPM Mortgage has launched a new range of loans catering to prime borrowers who fall outside new Qualified Mortgage guidelines, with plans to eventually securitize the resulting collateral. The move comes as mortgage lenders increasingly look to the non-QM demographic, and follows a new industry initiative to revive the moribund private-label RMBS market.

  • IOSCO launches info repository for clearing regs

    The International Organization of Securities Commissions has launched an information repository for central clearing requirements for over-the-counter derivatives, providing both regulators and market participants with a one-stop shop for consolidated information on the clearing requirements of different jurisdictions.

  • Standard Bank ratchets price as it lines up $375m 3yr loan

    South Africa’s Standard Bank is in the market with a $375m three year loan as it looks to refinance debt in smaller size and tighter levels.

  • MTN Leak: Ich bin ein EastEnder

    Worries surfaced in the MTN world this week that the export of English words to far flung corners of the globe might soon include some of the poorest prose in the history of the language.

  • Credit unions seek same ABS benefits as bank brethren

    Fast-growing US federal credit unions are quietly updating rules that have prevented them from securitizing loan originations in the same way larger bank competitors have for years.

  • Periphery suffers as Russian tensions grow but issuers comfortable

    The eurozone periphery suffered one of its poorest weeks of the year, as a sanctions battle between Russia and the west pushed investor cash into core European debt. But with Spain driving down its funding costs at auction and periphery sovereigns well-funded — plus record low Bund yields leaving investors seeking yield with few options but to return to the periphery in the future — there were few concerns that the issuers will struggle to meet their funding targets this year.

  • AT1 market dealt blow after blow as issuers risk September lock-out

    Prolonged weakness in the secondary market for additional tier one (AT1) securities was whipped up to become a full on correction on Wednesday. That drove market participants to say that prospects are dwindling for issuance until after the Asset Quality Review in October, meaning borrowers will miss the glut of early autumn liquidity — one of the busiest times in the issuance calendar.

  • BES subholders look likely to lose it all, senior safe for now

    Bailed out Portuguese lender Banco Espírito Santo’s subordinated creditors look likely to come away from its state rescue with little to none of their investment intact. Credit analysts predict that the balance sheet of the rump bank left after the state rescue indicates BES is unlikely to have sufficient assets to meet its obligations.

  • Tyson prints $3.25bn as supply floodgates re-open

    The US corporate investment grade bond market rediscovered its mojo as August got off to a flying start following one of the slowest months for issuance on record.

  • BBVA RMBS hit by downgrades on poor loans

    Spain’s BBVA has suffered a raft of downgrades to three RMBS transactions it originated in 2007, after Fitch Ratings found the volume of distressed loans in the portfolios was understated in the transaction’s regular reporting.

  • Private buyers miss out on more SME ABS as EIB stake helps Bari issue €220m deal

    Banca Popolare di Bari has kept more SME ABS out of the hands of private investors after selling the majority of a securitization of loans to Italian small and medium-sized companies to the European Investment Bank and retaining the rest.

  • People Moves in Brief

    New HY head at Morgan Stanley - HSBC cuts CEEMEA DCM - Double levfin hire from Barclays to CS - Mitsubishi takes UBS's MTNs head

  • Moody’s avoids slaughter of multi-Cédulas sector, bides

    Moody’s this week got round to taking rating action on over 40 Spanish multi-Cédulas covered bonds on Friday.

  • S&P methodology change could increase CLO leverage

    Recent tweaks to Standard & Poor’s loan recovery rating methodology could give CLO managers an incentive to choose the ratings agency over market leader Moody’s, which seized market share after a backlash last year over S&P’s treatment of covenant-lite collateral, say market participants.

  • High yield bonds, news in brief - August 8, 2014

    EMF postpones bond - Telefónica launches takeover bid - KKR to sell Boots

  • Leveraged loans - news in brief, August 8, 2014

    Huvepharma - Orion Engineered Carbons - Delek Group - Emsland – Stärke

  • Supranationals in short-dated funding spree

    A pair of supranationals enjoyed strong liquidity at the short end of the curve. The Asian Development Bank priced a long two year early in the week, days after the World Bank printed a similar maturity with both deals attracting enough demand to be increased from the minimum target size.

  • Lindorff closes bond in three currencies

    Lindorff, the credit management firm, priced €1.452bn-equivalent of notes on August 1 to finance its buyout by Nordic Capital.

  • Morgan Stanley hires new head of high yield

    Morgan Stanley has hired a banker from Deutsche in the new role of head of high yield, EMEA.

  • Berlin boosts private deal size as buyers hunt for highly rated paper

    Investors starved of paper from well-funded borrowers and the summer slowdown allowed the State of Berlin to increase a €100m 10 year print to €250m this week, following a €125m eight year from the sub-sovereign a day before.

  • Caffil to perform following new law, BES bodes well

    French public sector covered bond issuer Caffil is expected to continue outperforming the domestic market following the approval of a French law that limits the litigation risk it was facing.

  • Investors win out with better terms on both Materis subsidiaries deals

    Two subsidiaries of Materis, the French, Wendel-owned building materials firm, increased margins on €432m of term loan ‘B’s as part of a refinancing, in the first signs of successful push-back from investors after weeks of borrower-friendly terms on new issues.

  • ECB leaves investors guessing on CRD compliance

    Covered bond bankers are increasingly fielding calls from mainly German banks who want to know whether their covered bond investments are compliant with Article 129 of the Capital Requirements Directive (CRD). The process has become more challenging recently, because the European Central Bank will no longer provide this information.

  • Citi cuts 2014 corporate IG issuance forecast by €24bn

    The first seven month of the year have been busier for corporate bonds than at any time since 2009 but with many firms having finished refinancing for the year and macro risks abounding, issuance might have peaked, said market participants. Citi, for instance, this week advised clients to expect a less busy second half of the year, revising its investment grade corporate full year euro issuance forecast down to €210bn from €234bn.

  • Banks reshuffle to respond to record cross-border year

    Cross-border ECM is on the rise and those banks that are able to provide global solutions to clients are hoping to win an increasing share of international business.

  • BSkyB deal raises hopes of IG bond issues

    Bond financing for British Sky Broadcasting's £5bn acquisition of Sky Italia and Sky Deutschland could help boost the pipeline for the second half of the year, along with other M&A deals.

  • Strong demand for bonds hides poor liquidity in secondary market

    Recent issuers of corporate bonds have built bulging order books and tightened spreads thanks to strong demand for new deals, but the vibrancy has not filtered down to the secondary market. Some market participants are concerned about the lack of liquidity in the asset class.

  • Mitsubishi UFJ makes senior hire in MTN push

    Mitsubishi UFJ has hired a senior MTN dealer as head of medium term notes, the latest move in the company’s efforts to grow its MTN business.

  • Covered bonds should not be included in the capital stack

    Given that covered bonds have been carved out of bank resolution, should they still be considered a part of bank credit? Investors should think about redrawing their credit lines to distinguish between state-supported and bail-in debt.

  • Westpac NZ reopens silent Swissie market

    Westpac New Zealand broke more than a month of silence from international issuers in the Swiss franc market on Tuesday, selling a new six year print. The deal was priced around flat to outstanding paper, with investors starved of primary and secondary supply willing to take the aggressive level.

  • ‘Lord Of The Rings’ ABS hits screens this week

    Bob and Harvey Weinstein’s Miramax Films, the distribution company with film rights to over 700 titles including Lord of the Rings, Pulp Fiction and Chicago, is teaming up with Barclays to sell a new securitization tied to royalties. The deal would be the first release of its kind since 2011.

  • Ecobank size scrutinized as big price move made from talk to launch

    Ecobank Nigeria has priced its $200m seven year non-call five deal at a yield of 9% with a large tightening in price guidance, brushing aside sceptics who said printing a note this week would be challenging.

  • American Residential announces debut rental deal

    American Residential Properties Inc (ARPI) has finally obtained ratings for a debut single family rental securitization and has plans to sell a $342m deal backed by 2,880 properties.

  • Vodafone will shrug off Fitch downgrade, say bankers

    Fitch Ratings dropped its rating for British telecoms group Vodafone from A- to BBB+ on Wednesday, blaming increased leverage as a result of its €7.2bn acquisition of Spanish broadband operator Ono.

  • MSCI launches new indices for investors avoiding Russia

    Index provider MSCI has launched new indices protecting investors from exposure to the Russian markets as a separatist rebellion in neighbouring Ukraine rages on. MSCI may remove sanctioned Russian banks from the existing index, a possibility that prompted those institutions to insist that they did not need or plan to issue equity anyway.

  • Urban Exposure cancels IPO as hot London summer turns

    Urban Exposure, a UK real estate investment firm, has cancelled its planned £500m listing as the London IPO market turns soft over the summer.

  • UK IPO volumes triple as global issuance hits records

    The volume of IPOs from the UK has increased more than threefold year on year, with issuance from the country reaching $23.5bn for 2014 year to date.

  • Qatar admits foreign investors as Gulf listing scrum grows

    Qatar has raised the upper limit for foreign investors in the country's stocks, making it the latest state in the Gulf to try to encourage international investment.

  • Steinhoff completes rights ready for German move

    South African furniture retailer Steinhoff International has completed an R18.2bn capital raise, issuing 350m new shares as it repatriates capital ahead of its planned Frankfurt listing.

  • Vontobel expands with APAC structured product hire

    Vontobel Financial Products has hired Thomas Süssli in Singapore, a former structurer at Credit Suisse, to lead the firm in the Asia Pacific.

  • Abil plunges as it looks to raise at least $790m

    Shares of African Bank Investments (Abil), South Africa's biggest unsecured lender, plunged this week as the bank unveiled a need for at least $790m of new capital, despite a recent rights issue, because of losses and writedowns.

  • Bookie taps €1bn call option on Swiss franc, hopes for SNB floor hike

    One leading interdealer broker in London this week bought a €1bn euro call on the euro/Swiss franc exchange rate in anticipation of the Swiss National Bank (SNB) raising the enforced Sfr1.20 ($1.32) floor on the rate to Sfr1.25 in a bid to combat deflation.

  • Dearth of supply allows Wells’ rare Kanga to price tight

    Wells Fargo made a rare visit to the Australian dollar market with a A$900m dual-trancher, pricing close to the leading Australian banks' bonds.

  • Asiamoney Best Domestic Bank Awards 2014: Taiwan

    Each year we choose the leading bank, equity brokerage and debt house across every major market in Asia. In Taiwan, E.Sun Financial Holding shines for its efforts in building non interest income, while Yuanta fends off tough competition to lead in equity and bonds.

  • Bail-in drives Moody’s to turn negative on UK banks

    Moody’s changed its outlook for the UK’s banking sector to negative on Wednesday, judging that banks are likely to benefit from less support from the sovereign in the future. The agency also noted that plans to ring-fence retail banking from investment banking could harm credit ratings.

  • Asiamoney Best Domestic Bank Awards 2014: Thailand

    Each year we choose the leading bank, equity brokerage and debt house across every major market in Asia. In Thailand, Siam Commercial Bank beats arch-rival Kasikornbank to be named top lender, while Phatra Securities remains top for equities in tough conditions and Bangkok Bank stands tallest for bonds.

  • Orion widens price guidance on €780m loan

    German carbon black producer Orion Engineered Carbons has widened price guidance on its €780m-equivalent loan and will close books on the deal today.

  • Delek allocates €655m acquisition loan

    Delek Group, the Israeli energy conglomerate, has allocated the €655m loan that backs TDR Capital’s purchase of its petrol station and convenience store operations in Benelux and France.

  • Credit Suisse hires two levfin bankers from Barclays

    Two leveraged finance bankers, one focused on Spanish corporate origination and one focused on financial sponsors, have left Barclays to join Credit Suisse's leveraged finance and sponsors team.

  • Commerz boosts profits, slashes non-core assets exposure

    Commerzbank Group on Thursday posted a pre-tax profit of €257m in the second quarter, up from €74m in the second quarter last year, and has exceeded its 2016 target for reducing the exposure at default in its non-core asset portfolio — helping to boost its share price by over 2.3% on the day.

  • Citi cuts 2014 corporate IG euro issuance forecast by €24bn

    Citi has advised clients to expect a less busy second half of the year, revising the bank's investment grade corporate full year issuance forecast down from €234bn to €210bn.

  • ISDA delays BES ruling as Novo Banco looks to be saddled with Angolan loans

    The International Swaps and Derivatives Association on Wednesday delayed its ruling on whether $900m of credit default swaps relating to Banco Espírito Santo would transfer to the newly created Novo Banco, or remain in the rump bad bank. While chances of recovery of sub debt investments seem slim, BES’s creditors may be able to take some solace from the apparent transfer of loans to BES Angola to bridge bank Banco Novo.

  • Chenavari to price debut CLO 2.0 as juniors weaken

    Chenavari Investment Managers will look to price its debut European CLO 2.0 on Friday, defying weaker trading in a more illiquid summer market that has sent junior euro CLO tranches materially wider.

  • Big four make moves to issue tier two bonanza

    China’s biggest banks have ramped up their capital raising activities, targeting investors both on and offshore. Yet while their biggest need is for additional tier one (AT1), lenders are starting with tier two securities in a bid to aid price discovery, write Virginia Furness and Isabella Zhong.

  • Abil plunges as it looks to raise at least $790m amid writedowns and losses

    Shares of African Bank Investments, South Africa's biggest unsecured lender, plunged this week as the bank unveiled a need for at least $790m of new capital, despite a recent rights issue, because of losses and writedowns.

  • Singapore’s ECM reforms to do more harm than good

    Singapore plans to reform its equity capital markets to improve transparency and control excessive speculation and manipulation of penny stocks. However, market participants have warned that, although the city state is well intentioned, the negative consequences will outweigh any positives, write Rashmi Kumar and Rev Hui.

  • Ecobank makes ratchets in price but disappoints on size

    Ecobank Nigeria has priced its $200m seven year non-call five deal at a yield of 9% with a large tightening in price guidance that seemed to brush aside critics who said printing a note this week would be challenging. But the note was sold with a size that several syndicate officials away from the deal said was smaller than the “benchmark” size originally advertised.

  • CCB Asia adds offshore tier two to Basel III capital rush

    China Construction Bank Asia is meeting investors for what could be the lender’s first ever Basel III compliant bank capital transaction.

  • Aiming for the stars: Reach in largest Spac IPO

    Reach Energy has become the largest special purpose acquisition company (Spac) to list on Bursa Malaysia, having completed its MR750m ($237m) IPO on August 1.

  • Qihoo tackles choppy markets head on with $900m CB

    Internet security provider Qihoo 360 Technology has priced the largest convertible bond from an Asian ex-Japan issuer in four years, taking home $900m on August, 1 in spite of a challenging market backdrop.

  • Rundong parks $124m IPO at the bottom of guidance

    Retail investors gave China Rundong Automobile Group’s HK$962m ($124m) IPO the cold shoulder as their tranche ended up only 32% covered. Luckily for the car dealer, there was enough interest from institutional accounts to make up the gap, allowing it to seal the deal on Wednesday.

  • Prestige Estates takes home $100m with aggressive QIP

    Indian real estate developer Prestige Estates Projects raised Rp6.13bn ($100m) on Monday with a tightly priced qualified institutional placement (QIP) that was one third bigger than the base offer.

  • Shanghai Electric starts ignition for international debut

    Shanghai Electric Group (SEG) brought out its debut international deal on Thursday, with the local government owned equipment manufacturer offering a Reg S five year bond.

  • Korea’s Kepco halves LG U+ stake with $180m block

    Korea Electric Power Corp (Kepco) netted W186.3bn ($180m) on Monday by selling a 4.4% stake in telecommunications company LG U+. Despite the leads opening bookbuilding without much demand already lined up, investors flooded into the deal, eager to get their hands on the stock.

  • Beijing Enterprises Water sources $120m loan

    Beijing Enterprises Water Group has opened into syndication a $120m ‘B’ loan as part of a $240m fundraising that is supported by the Asian Development Bank (ADB). The ‘B’ loan of the deal could double in size, depending on demand.

  • Yang steps into BNP Paribas Greater China role

    BNP Paribas has appointed Paul Yang as the regional head for Greater China as well as country head for China, in addition to his current responsibilities as country head for Hong Kong and CEO of BNP Paribas’ Hong Kong Branch.

  • HSBC’s local currency chief heads to London

    James Fielder, head of local currency syndication Asia Pacific at HSBC, is relocating to the UK where he will work in the lender’s Banking division.

  • Summertime and the living is anything but easy

    It always bugs me that people seem to have this misconception of bankers when it comes to summer. We always get accused of living it up in Seminyak, but that’s just a lazy generalisation.

  • China Merchants raises $500m for leasing entity

    China Merchants Bank returned to the bond market on Tuesday but this time the proceeds of the deal will go to its subsidiary CMB Leasing.

  • Yield hike and anchors make it second time lucky for Jingrui bond

    Extensive preparation and cheaper pricing saw Jingrui Holdings to the finish line when the single-B rated property re-attempted a debut dollar issue on Friday, August 1. The Chinese borrower had returned to the drawing board after its first stab at the five year non-call three offering in May failed to garner enough investor interest, writes Isabella Zhong.

  • IReit cements S$372m IPO despite challenges

    IReit Global closed the institutional bookbuilding phase of its S$372m ($299m) Singapore IPO on last Friday, though the retail offer remains open until August 11. As all the Reit's assets are in Germany, this proved a challenge to bookbuilding, but the leads wooed investors with a juicy yield.

  • Samudra out of fuel for $223m Singapore IPO

    Indonesian oil and gas exploration firm Samudra Energy pulled its S$276.3m ($223m) Singapore IPO this week, as volatile market conditions following the S&P 500’s big fall led to weak demand from investors.

  • Louis Dreyfus hikes loan to $500m with 26

    The Asian arm of Louis Dreyfus Commodities has closed syndication of its three year revolver at $500m, higher than its launch size of $300m, with the borrower’s relationship banks coming into the deal.

  • Kexim goes long with newest dual trancher

    Export Import Bank of Korea (Kexim) raised $1bn with a dual tranche bond on Tuesday, pricing through its curve for the five year tranche. But even though the issuer went out with a SEC-registered deal, the bulk of the demand still came from Asian accounts.

  • HCP Global packages $380m, eyes US

    Cosmetics packager HCP Global is targeting a US syndication for a $380m financing, banking on a strong reception from a market that is happy to invest in cov-lite deals. The facility is split into three and has a trio of banks at the top level.

  • Qingdao Develop Way digs for $120m loan

    Chinese commodity trader Qingdao Develop Way Industrial Co has opened up a $120m three year loan, with Deutsche Bank as the mandated lead arranger and bookrunner. The loan comes with three guarantors, as well as security based on Glencore China’s accounts receivable.

  • Five win mandate for HPCL $300m facility

    A consortium of five banks has won the mandate for Indian state-owned oil company Hindustan Petroleum Corp’s $200m five year loan, which features a $100m greenshoe.

  • CVC bags $399m with bigger Matahari block

    Asia Color Company, controlled by CVC Capital Partners, raised Rph4.7tr ($399m) on Tuesday by selling a chunk of its shares in Matahari Department Store. A strong response from investors allowed the private equity firm to offload a bigger stake than first planned.

  • StanChart picks Raber to run cap markets

    Standard Chartered will be hoping its new head of capital markets will be in position longer than his predecessors as Henrik Raber becomes the third person to hold the job in as many years.

  • Three sign up to Minacs $150m LBO borrowing

    Bookrunners and mandated lead arrangers DBS and ING have wrapped up a $150m loan that was issued to back the leveraged buyout of Minacs, the business process outsourcing unit of Indian company Aditya Birla Group.

  • Choppy markets hit Japfa $159m debut listing

    Volatile markets forced Indonesian agricultural firm Japfa to price its S$198.4m ($159m) IPO close to the middle of guidance on Wednesday, even though books were covered across the range.

  • Russian banks shrug off index exclusion

    Russia's largest banks have dismissed a plan to exclude them from the indices on the country, arguing that they have no need or plans to raise equity capital anyway.

  • Hard slog ahead for broking pretenders

    The gap between the established order and the new pretenders still remains but it is closing, writes David Rothnie

  • Share transfer ends restructuring in Talisman 6 CMBS

    Hatfield Philips has completed a restructuring of the €225m Apple Whole Loan in the Talisman 6 Finance PLC CMBS, after the parent companies of the loan’s recipient companies agreed to have their shareholdings transferred to two holding companies.

  • World's biggest private coffee firm files to go public

    Massimo Zanetti Beverage Group, which claims to be the world's biggest privately owned coffee firm, has filed for an IPO on the Milan Stock Exchange.

  • FGB adds two to structured finance team

    First Gulf Bank has added two people to its structured finance team. Anand Bangur and Mehdi Raza have joined the group’s debt markets and syndications team under former Standard Chartered banker Steve Perry, who was hired by FGB in September 2013.

  • Twin Peaks and Piketty in the Twenty-First Century

    Gary Jenkins gets stuck into the least read economics blockbuster of the year, and finds it has much in common with Twin Peaks.

  • Findeter brings local currency back to LatAm

    Colombian infrastructure lender Findeter (Financiera de Desarrollo Territorial) triggered hopes that local currency denominated debt may be back on the menu in Latin America after a hiatus of more than a year after it raised $500m-equivalent in Colombian pesos on Wednesday.

  • Pelindo $1bn loan to feature greenshoe

    Pelabuhan Indonesia II’s $1bn five year loan,, which has been in gestation since May, will now also include a greenshoe option of $275m.

  • Bharti Airtel offloading stake in Infratel

    Telecommunications giant Bharti Airtel is selling a 2.4% stake in its majority-owned subsidiary Bharti Infratel, with early indications from investors already enough to suggest that the Rp11.25bn ($183.4m) offer-for-sale (OFS) will get done.

  • iDreamSky to price IPO above guidance

    Chinese mobile game distributor iDreamSky Technology is set to price its $115.5m Nasdaq IPO above the indicative price range.

  • CME’s European CCP gains EMIR recognition

    CME Group’s European clearinghouse, CME Clearing Europe, has received authorisation as a central counterparty clearinghouse for over-the-counter derivatives under the European Market Infrastructure Regulation.

  • TMX’s rules could lure US dealers as trades go OTC

    The Montreal Exchange could see more liquidity from US-based equity dealers wanting the benefits of exchange trading, while retaining the ability to protect their positions from front running by other market participants. TMX’s exchange rules allow dealers to hedge their positions before executing their trade, helping reduce delta risk - or the option’s price compared to the underlying stock.

  • Applebee’s, IHOP prepare latest restaurant ABS

    Applebee’s bar and grill and its pancake griddle partner IHOP plan to sell a whole business securitization that would be at least four times larger than the asset-backed deal that Hooters sold last month.

  • Western banks look to cash in on Russian retreat

    European loan bankers are worried about the impact Russian sanctions will have on their end of year earnings, but there may be some comfort for them in the likelihood that Russian banks themselves will retrench into their home market rather than push for emerging market business elsewhere.

  • Does sovereign debt need more special treatment?

    The massed public debt officials of the European Union have endorsed a plea from the Belgian Debt Office to keep their primary dealers safe from MiFID II, a mammoth regulatory overhaul of wholesale and retail financial markets.

  • Loans, news in brief - 1366

    Akbank holds firm on price — Econet closes loan with Afreximbank — Gunvor closes oversubscribed facility

  • EU says loans not sanctions target, Russian deals push ahead

    Daylight has opened up between the European and US positions on lending to Russia, with the Council of the European Union confirming that it intentionally left loans out of its sanctions against the country. And while some bankers are holding firm on their aversion to the Russian market, others say deals already in the market are progressing and that they are open to taking on new business with Russian entities.

  • ICAP, MTS add eurozone index to RepoFunds rate

    Structured products issuers are already looking to use ICAP’s newly launched daily repo index for eurozone sovereign bonds as an underlying for upcoming transactions.

  • IFC to expand Uridashi prints and up R$ issuance

    The International Finance Corporation is looking to enlarge its Brazilian reais issuance and boost its profile with Uridashi investors.

  • Levfin investors fight back, autumn pipeline bare after hat trick of horrors

    A sour mood lasting weeks in leveraged finance markets, including fund outflows, culminated in Styrolution’s failure to secure a €1.6bn refinancing deal on Thursday. With two other levfin deals needing wider pricing to be completed and with another deal pulled in the high yield market, market participants now have serious doubts about the September deal pipeline.

  • Sovereign debt heads call for MiFID leniency

    Issuer groups and industry bodies have hit back at Europe's latest proposals for MiFID II, with sovereign debt issuers, corporate treasurers and industry lobby groups all pushing for changes to the draft.

  • American Residential to announce debut rental deal

    American Residential Properties Inc (ARPI) has finally obtained ratings for a debut single family rental securitization and will this week announce a $342m deal backed by 2,880 properties.

  • CME sees record equity options volume

    CME Group saw record trading volumes on their S&P 500 options contracts late last week, with trading reaching over 1.1 million on the bourse’s e-mini contracts late last week.

  • KKR to cede remaining stake in Alliance Boots seven years on from LBO

    US pharmacy group Walgreens is looking to acquire the 55% stake in UK chemist chain, Boots that it does not already own, as KKR exits the firm it acquired in 2007 for a record £11.1bn.

  • Econet Wireless closes $150m loan with Afreximbank

    South Africa headquartered Econet Wireless Global has closed a $150m financing facility with Export-Import Bank (Afreximbank).

  • As IPOs stumble, market bets on new issue tumbles

    Investors are going increasingly short on many of the firms that listed in the busy IPO markets of the first half of 2014, after a run of difficult deals into the summer.

  • Asiamoney Best Domestic Bank Awards 2014: South Korea

    Each year we choose the leading bank, equity brokerage and debt house in each major market in Asia. In South Korea Shinhan Bank continues to shine for its credit risk management and diversification, while Woori Investment & Securities shines in equities and KB Financial Group proves strongest in debt.

  • Huvepharma set to close tighter with €275m loan

    Bulgarian animal drugs firm Huvepharma is due to close its €275m acquisition loan by the end of Wednesday, with pricing expected to tighten on the deal.

  • Flooring firm lays plans for Hungarian listing

    Hungarian flooring firm Graboplast is considering a Budapest listing as it seeks to expand.

  • Materis Chryso joins Materis Paints in widening prices for lenders

    Materis Chryso, the French admixture producer for concrete and cement, has widened the margin on its €165m seven year term loan ‘B’, after lenders pushed back on pricing.

  • Rare issuer Vodafone will shrug off Fitch downgrade, say bankers

    Fitch Ratings dropped its rating for British telecoms group Vodafone from A- to BBB+ today, blaming increased leverage as a result of its €7.2bn acquisition of Spanish broadband operator Ono.

  • Qatar admits foreign investors as Gulf listing scrum grows

    Qatar has raised the upper limit for foreign investors in the country's stocks, making it the latest state in the Gulf to try and encourage international investment.

  • AT1 secondary market sinks as selling pressures mount

    The beating investors are giving the market for additional tier one (AT1) securities became more intense on Wednesday, as global risk aversion added fuel to other downward pressures on AT1 prices.

  • Westfield CMBS postponed as investors get jitters on CRD

    Crédit Agricole and Deutsche Bank have postponed the Westfield Stratford CMBS after a number of investors grew jittery over the banks’ interpretation of European risk retention rules, under which they decided neither they nor the sponsors would take a 5% stake in the £750m deal.

  • 4Finance offers sky high initial price thoughts for first non-sovereign Latvian bond since 2007

    Latvian short term finance company 4Finance has released initial price thoughts at 11.75% for a five year put three dollar bond. The bond is the first international deal from a Latvian non-sovereign issuer for seven years.

  • HSBC chops from CEEMEA DCM

    Ivan Loktev, a director of CEEMEA debt capital markets at HSBC, has left the bank. Loktev had been at HSBC for nearly 10 years. He was covering the former CIS countries.

  • American Century Investments launches EM debt fund, hires Margé Karner

    American Century Investments has launched three new portfolios and hired Margé Karner as vice president and senior portfolio manager.

  • Akbank holds firm on price as loan approaches

    Akbank has decided not to push tighter on pricing than its previous loan deal as it leads the year’s second wave of Turkish bank refinancings, closely pursued by Isbank and Yapi Kredi.

  • Tata Power subsidiary hunts for $560m dual trancher

    ANZ, Bank of America Merrill Lynch, and Royal Bank of Scotland are leading a $560m financing for an overseas subsidiary of Tata Power. SBI is also tipped to join at the top level before syndication.

  • Westpac reopens Swiss market with tight print

    Westpac New Zealand broke more than a month of silence from international issuers in the Swiss franc market on Tuesday, selling a new six year print. The deal was priced around flat to outstanding paper, with investors starved of primary and secondary supply willing to take the aggressive level.

  • Ecobank ignores warnings of Africa investor malaise, releases guidance

    Ecobank Nigeria has released initial price thoughts at high 9% area for a benchmark seven year non-call five bond. Some bankers away from the subordinated note had questioned whether the deal would be well received after Seven Energy’s note was postponed last week because of market volatility but the books are already covered, according to a syndicate official on the deal.

  • CCB Asia joins Basel III wave with proposed dollar T2

    China Construction Bank Asia will be meeting investors this week for what could be the lender’s first ever Basel III compliant bank capital transaction.

  • Kexim marks return with $1bn dual-trancher

    Export Import Bank of Korea (Kexim) raised $1bn with a dual-tranche bond on August 5, pricing through its curve for the five year tranche. But even though the issuer went out with a SEC-registered deal, the bulk of the demand still came from Asian accounts.

  • BBVA legacy RMBS hit by downgrades on distressed loans

    Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) has suffered a raft of downgrades to three RMBS transactions it originated in 2007, after Fitch Ratings found the volume of distressed loans in the portfolios was understated in the transaction’s regular reporting.

  • Bail-in and ring-fencing turn Moody's negative on UK banks

    Moody’s changed its outlook for the UK’s banking sector to negative on Wednesday, judging that banks are likely to benefit from less support from the sovereign in the future. The agency also noted that plans to ring-fence retail banking rom investment banking could harm credit ratings.

  • Malaysia’s Reach wraps up largest $237m Spac IPO

    Malaysia’s Reach Energy is set to become the largest special purpose acquisition company (Spac) to list on the country’s stock exchange, with books now closed — and oversubscribed — for its MR750m ($237m) IPO.

  • Geopolitical risks rise ahead of SSA September splurge

    Political risks started to loom on the horizon for the sovereign, supranational and agency market this week, as Russian troops assembled on the Ukrainian border, Italian economic figures revealed that the country fell back into recession in the first half of this year and even the possibility of Scotland’s independence from the UK flashed across market participants’ radars.

  • Private investors miss out on more SME ABS

    Banca Popolare di Bari has kept more SME ABS out of the hands of private investors after selling the majority of a securitization of loans to Italian small and medium-sized companies to the European Investment Bank and retaining the rest.

  • Thin secondary trading keeps spreads stuck too wide for issuers

    Syndicate desks were hoping to see a small amount of opportunistic FIG issuance speckle the pipeline this week, but it may be difficult to convince issuers to come to market, as thin trading on the secondary market is preventing spreads from tightening. That left regulatory changes and the latest twists in the Banco Espirito Santo tale as the key items occupying most bankers' thoughts this week.

  • Samudra runs out of gas for $223m Singapore IPO

    Indonesian oil and gas exploration firm Samudra Energy has pulled its S$276.3m ($223m) Singapore IPO, as volatile market conditions following S&P 500’s massive drop last week led to weak demand from investors.

  • We’re all going on a CEEMEA holiday, say EM bankers

    Caught up in the sell-off in the emerging markets, issuers from the CEEMEA region have been reluctant to come forward for new bonds this week.

  • Japfa prices $159m IPO close to the middle

    Volatile market conditions forced agricultural firm Japfa to price its S$198.4m ($159m) IPO close to the middle of guidance on August 6 even though books were covered across the range.

  • Provisions loom over UniCredit IB as Mustier quits

    UniCredit's investment banking results are dominated by loan losses, with financing revenues from Italy swelling 62% but entirely wiped out by provisions taken in the region. Separately, Jean Pierre Mustier, the head of the unit, announced his departure on Tuesday.

  • CVC returns with $399m Matahari block

    Asia Color Company, controlled by CVC Capital Partners, raised Rph4.7tr ($399m) on August 5 by selling a chunk of its shares in Matahari Department Store. A strong response from investors allowed the private equity firm to offload a bigger stake than originally planned.

  • CMB Leasing taps bond investors for $500m

    China Merchants Bank made a return to the bond market on Tuesday, August 5 but this time the proceeds of the deal will go to its subsidiary CMB Leasing.

  • In wake of BSkyB deal, loans bankers await next big takeover

    While there are no clear signs as yet of a big, investment grade M&A driven deal to follow last week’s BSkyB package, bankers say there is no shortage of potential activity — and what comes through in the loans market could provide good margins.

  • Asset manager seen snapping up HY swaptions

    A mid-sized fixed income asset manager-based in New York has been buying three-to-six month swap options on the Markit Credit Default Swap High Yield Index, in a bid to protect against expected higher volatility in the US markets.

  • CDS notional increases more than 50%

    Overall credit default swap notional that was reported to swap data repositories last week increased by 52% from the previous week, according to data from the International Swaps and Derivatives Association. This was a significant increase following a sharp decrease of 30% reported in the previous week. Overall interest rates derivatives trading that was reported, however, declined by 23%.

  • ‘Lord Of The Rings’ ABS hits screens this week

    Bob and Harvey Weinstein’s Miramax Films, the distribution company with film rights to over 700 titles including Lord of the Rings, Pulp Fiction and Chicago, is teaming up with Barclays to sell a new securitization tied to royalties. The deal would be the first of its kind to appear since 2011.

  • SIFMA submits further comments on aggregation of positions

    The Securities Industry and Financial Markets Association’s Asset Management Group has submitted additional comments to regulators surrounding the aggregation of positions pertaining to agricultural commodity futures and option contracts, as well as physical commodity swaps, in a bid to make the proposed rules less arbitrary and more workable for investment managers.

  • Covered bonds aren’t in the capital stack

    Given that covered bonds have been carved out of bank resolution, should they still be considered a part of bank credit? Investors should think about redrawing their credit lines to distinguish between state-supported and bail-in debt.

  • Mustier steps down as UniCredit CIB boss

    Jean Pierre Mustier has decided to leave his role as head of UniCredit’s investment bank, and plans to head instead to take on "an external role focused on the financing of the real economy, through debt and equity”.

  • Cantor bids to build in mortgages and CLOs

    Cantor Fitzgerald is looking to acquire residential mortgage origination firms as it moves to “aggressively” expand its capabilities in that market, its CEO, Shawn Matthews, told GlobalCapital. The firm is also looking to move into the CLO market.

  • UK IPO volumes triple as global issuance hits highest level since 2007

    The volume of IPOs coming from the IPO has increased more than threefold year on year, with issuance from the country reaching $23.5bn for 2014 year to date.

  • Gunvor closes oversubscribed $290m facility

    Commodity trader Guvnor Group has closed a $290m uncommitted revolving credit facility as it looks to diversify financing sources to support both new investments and existing operations.

  • Urban Exposure cancels IPO as hot London summer brings cool conditions for issuers

    Urban Exposure, a UK real estate investment firm, has cancelled its planned £500m listing as the London IPO market turns soft over the summer.

  • Investors win better terms on Materis Paints’ refi deal

    Materis Paints has reduced the size of its seven year term loan ‘B’ from €292m to €267m and flexed pricing on the facility, in the first sign of a successful push-back from investors after weeks of borrower-friendly terms on new issues.

  • Asiamoney Best Domestic Bank Awards 2014: Singapore

    Each year we choose the leading bank, equity brokerage and debt house in each major market in Asia. In Singapore OCBC's efforts to expand into North Asia via the purchase of Wing Hang Bank impresses, while DBS retains its stranglehold of capital markets coverage.

  • Buoyant primary market hides weak bond liquidity

    Recent issuers of corporate bonds have built bulging order books and tightened spreads thanks to strong demand for new deals, but this vibrancy has failed to filter through to the secondary market.

  • Crédit Agricole profit halves on BES hit

    Crédit Agricole took a €708m hit from its exposure to Banco Espírito Santo (BES) as its second quarter profit halved from the same period last year. Despite this, the French bank’s first half earnings compared more favourably year-on-year, aided by its improved first quarter and what it called “good business momentum”.

  • S&P methodology change could benefit CLO managers

    A change in Standard & Poor’s loan ratings methodology could benefit CLO managers by moving some of the assets in their CLO portfolios further away from recovery rating covenants, according to Wells Fargo analysts.

  • Angola revokes BES guarantee as sub holders brace for more bad news

    Bailed out Portuguese lender Banco Espírito Santo has been hit with fresh bad news, as Angolan authorities announced they would no longer guarantee the loan book of BES’s subsidiary in the country. Meanwhile, buyers of credit default swaps (CDS) on BES’s sub paper are expected to be told that the protection contracts are worthless due to the nature of the breakup of the bank.

  • Telefónica launches bid for Vivendi’s GVT unit

    Spain’s Telefónica and Telefónica Brasil have launched a R$20.1bn (€6.7bn) acquisition offer for Vivendi’s Brazilian unit Global Village Telecom.

  • Westfield CMBS focused on upper end of price guidance

    Lead managers Crédit Agricole and Deutsche Bank have revised price guidance on their £750m Westfield Stratford City Finance CMBS, focusing investors on the upper end of initial price thoughts.

  • Standard Bank pushes for tighter funding with $375m 3yr

    South Africa’s Standard Bank is in the market with a $375m three year loan as it looks to refinance debt in smaller size and tighter levels.

  • DCM takes over solutions team at UBS

    UBS has reorganised its debt capital markets operation, handing Fabio Lisanti, global head of DCM, responsibilities for a group of public side bankers in the remodelled DCM Client Solutions division.

  • Avoca follows ICG to shoot CLO inside 135bp

    KKR's Avoca Capital has built on a very minor recent tightening in primary euro CLO spreads this week by pricing the senior notes of its second European deal of the year at 134bp over Euribor, in line with Intermediate Capital Managers’ St Paul’s CLO V transaction last week.

  • Mriya fails to make debt payments as Ukraine crisis stifles financing

    Ukrainian Agricultural company Mriya has not made interest and amortisation payments on certain of its debt obligations and is warning bondholders of its $250m 10.95% 2016s and $400m 9.45% 2018s that its balance sheet may need to be restructured. Other Ukrainian companies may find themselves running into similar difficulties as the crisis in their country escalates.

  • Singapore makes ECM reforms but liquidity a concern

    Singapore has announced a set of reforms to its equity capital markets in a bid to improve transparency and clamp down on excessive speculation and manipulation of low-priced securities. While the moves are being hailed as positive among syndicate bankers, there is some concern it could dry up an already illiquid market.

  • Landmark onshore T2 deals fire up China Basel III

    China’s big four banks have finally started issuing Basel III debt in size onshore in what is expected to be a huge supply of deals. Bank of China and Industrial and Commercial Bank of China are first put of the blocks and could soon be heading offshore as well.

  • Kexim opens books to benchmark dual-trancher

    Export Import Bank of Korea (Kexim) returned to the market on August 5, opening books to a SEC -egistered dual tranche benchmark transaction that is split between a five year and a 12 year.

  • Russia’s dim sum craving will not be sated

    Russia is now subject to its toughest economic sanctions since the end of the Cold War. With the US and Europe effectively closed to them, Russian borrowers are searching for other options. Asia is top of their list, but they are unlikely to find the support they want.

  • Banning Russian loans would be better for bankers

    It would be absurd for a banker to lobby for a ban on the instrument of his or her trade. And yet, the European Union’s latest round of sanctions against Russia has created an absurdist’s dream in which syndicated loans were not banned but it might well have been better for western bankers if they had been.

  • Europe-focused IReit builds S$372m IPO

    IReit Global closed the institutional bookbuilding phase of its S$372m ($299m) Singapore IPO on Friday, August 1, with the retail offer still ongoing. The fact that the Reit has all of its assets in Germany proved a challenge when building books, but the leads circumvented that by wooing investors with a juicy yield.

  • Total Derivatives: CNY offered after PMI

    Short CNY swaps were better offered on Tuesday, with easier liquidity conditions and weak Chinese data driving the interest. Meanwhile, Taiwan’s Sinopac is preparing to trade CNH bonds in Taiwan, writes Deirdre Yeung of Total Derivatives.

  • Top FX banks revealed in Asiamoney's largest ever FX Poll

    Our biggest survey of Asia's foreign exchange services to date led to some familiar names winning the top ranked positions, while some other institutions made impressive leaps up the rankings into top three positions.

  • Minacs $150m LBO loan closes with five

    Bookrunners and mandated lead arrangers DBS and ING have closed a $150m loan that was issued to back the leveraged buyout of Minacs, the business process outsourcing unit of Indian company Aditya Birla Group.

  • CMB Leasing adds to loan funding with bond

    CMB Leasing, a subsidiary of China Merchants Bank, is conducting a two-pronged attack on the Asian capital markets and has opened guidance on a five year dollar bond after launching a loan into syndication on June 20.

  • HSBC names Hayek as head central banks, SWFs Apac

    HSBC has hired Rami Hayek to be its head of central banks and reserve managers and co-head of sovereign wealth and public funds coverage for Asia Pacific.

  • Crouching Tiger vs Hidden Dragon?

    As Hong Kong’s financial marketplace becomes increasingly reliant on the Chinese mainland for its IPOs, Singapore’s big opportunity perhaps lies with international issuers — and those from Southeast Asia in particular, writes Philippe Espinasse.

  • Prestige Estates snags premium pricing with increased QIP

    Indian real estate developer Prestige Estates Projects raised Rp6.13bn ($100m) on August 4 with a tightly priced qualified institutional placement (QIP) that was one-third bigger than the base offer.

  • No anchors, but Kepco makes $180m with LG block

    Korea Electric Power Corp (Kepco) netted W186.3bn ($180m) on Monday night by selling a 4.4% stake in telecommunications company LG U+. Despite the fact that the leads opened bookbuilding without much visibility on books, investors flooded into the deal eager to get their hands on the South Korean stock.

  • Findeter peso plans grab attention

    Colombian infrastructure lender Findeter (Financiera de Desarrollo Territorial) confirmed that it plans to sell its debut international bond in global peso format this week, surprising bankers and sparking hopes of a revival in global local currency issuance.

  • Paraguay offers pick-up for 30s as timing surprises

    Landlocked South American sovereign Paraguay surprised some with its timing by issuing its second ever international bond on Monday. But though bankers away from the deal said the 30 year deal created a steep curve, others said the borrower’s strategy was spot-on.

  • Taiwan opens up overseas CNH bonds to local brokers

    Taiwan's GreTai Securities Market has liberalised the trading of offshore renminbi bonds, allowing institutional investors to trade the securities through local Taiwan brokerages.

  • Philippines Project Finance Roundtable: Carving out a role for the bond market

    The Philippines may have made real progress in infrastructure financing, but the bond market still plays no role in helping projects get funded. This is partly down to the lack of development in the conventional bond market, but market participants think there can also be much more done to improve understanding among domestic investors — and to help Philippine companies reach investors from other countries. At this point, much of the discussion about using the bond market for project financing is hypothetical. But there is no doubt that these discussions are important for the future of the country and its citizens. Asiamoney sat down with a distinguished panel of speakers to figure out how the bond market can be brought into the project financing effort, and why it is not playing a bigger role at the moment.

  • Widodo’s to-do list

    The newly elected Indonesia president offers the potential to regain economic momentum and investor confidence. But he must act quickly and decisively. Richard Morrow reports.

  • Manila’s open invitation to foreign bank buyers

    The Philippines’ economy is suffering from inadequate foreign direct investment and an excruciatingly low credit-to-GDP ratio. The government’s decision to open up to more foreign banks could help tackle both issues. Matthew Thomas reports.

  • Philippines Project Finance Roundtable: Building on the success story

    The Philippines has made strides forward in infrastructure development over the last few years. But perhaps more importantly, it has made even bigger steps in putting in place the means of financing more crucial infrastructure projects in the future. The success of the public-private partnership (PPP) under president Benigno Aquino III may, indeed, be the most lasting and important step of his administration — and Jose Lotilla, undersecretary of transportation and communications, assured guests at this series of roundtables that there are plenty more projects to come. That does not mean all the questions have been answered, however. Executives still complain about delays in putting projects in place, and some uncertainty over future regulations. Funding officials still bemoan the lack of liquidity at longer tenors. But it is clear that things are going in the right direction. Asiamoney sat down with a number of key market participants — including Cosette Canilao, executive director of the PPP programme — to discuss the future of infrastructure funding in the Philippines.

  • Japan reaches out for better Asean ties

    With the policies of Japanese Prime Minister Shinzo Abe unlikely to greatly reinvigorate economic momentum, the country’s investors are seeking other areas to make money. South-east Asia is likely to be the key beneficiary. Richard Morrow reports.

  • Fan Bao aims to evolve Chinese investment banking

    The head of China Renaissance is spearheading his group’s ascent into becoming a senior adviser for new listings and M&A. He tells Asiamoney about his hopes to develop the group within China and beyond. Ian Driscoll reports.

  • Asiamoney Cash Management Poll: The region’s cash commanders

    Four banks stood out as the most impressive providers of cash management services in our largest ever poll, underlining the importance of this sector of financial services. Richard Morrow reports.

  • Asiamoney Best Domestic Bank Awards

    The region’s leading banks, equity brokers and debt houses possess a combination of clear strategy, strong market appeal and good leadership, which has helped see them through a sometimes turbulent year. Asiamoney reveals the standout institutions across the region.

  • Seeking solutions from Thailand’s military

    Since seizing power on May 22, the country’s generals have pledged bold political and economic reforms aimed at returning it to a stable path of growth. Can they fix the nation’s problems? Ben Davies reports.

  • CIMB: constructing an Islamic megabank

    CIMB is set to create Malaysia’s largest bank through a three way merger with RHB Capital and Malaysian Building Society. The institution could become a Southeast Asian giant, provided it can take full advantage of the synergies it needs to conduct. Richard Morrow reports.

  • Philippines Capital Markets Roundtable: A market in motion

    The Philippines' economy has become one of the best-regarded across Asia, getting plaudits from ratings analysts and economists, and growing at a stunning 7.2% last year. It should be little surprise in this context that the bond market is now growing at an eye-popping rate. But although things are certainly looking up for bond market participants in the country, bond issuance is still tiny compared to some of its Asian rivals. This is a problem for issuers and investors alike. Rosalia De Leon, national treasurer of the Philippines, delivered a keynote speech to the audience of this series of roundtables, making clear that there is plenty of room for the domestic debt market to grow in the years to come. Asiamoney sat down with a high-level panel of market participants to find out how to make that happen.

  • CAF returns to dollars claiming negligible premium

    Latin American development bank Corporación Andina de Fomento (CAF) opted to return to the dollar market with a $1bn three year on Tuesday, opting for a fixed rate note rather than an FRN because it wanted to issue a large benchmark.

  • Investors seen trading risk reversals on HY, big cap ETFs

    Investors have been trading short-dated risk reversals on high yield bond exchange-traded funds or big cap equity ETFs in a bid to hedge further declines in the US stock market.

  • Euro receiver spreads eyed on accommodative ECB policy

    Investors should look at buying euro zero-cost 1x2 receiver spreads due to the expectation that short and intermediate € rates will not durably or significantly follow US dollar rates up.

  • Orange Lake preps timeshare ABS

    Orange Lake Country Club and Wilson Resorts Finance are preparing to sell a $149m timeshare ABS, their third-ever securitization backed by loans tied to resort lodgings.

  • Susquehanna plans first deal since crisis as autos fill pipeline

    At least four auto ABS deals totaling $2.28m are lined up to be sold this week, including one from Susquehanna Bank’s auto finance unit, which has not issued a deal since before the crisis.

  • Thirasilpa joins DNB Markets as Director of fixed income origination

    Jo Jo Thirasilpa has joined DNB Markets, the Norwegian investment bank, where he will work as a director in fixed income origination team in London.

  • Norway’s Lindorff prices LBO bond in three currencies

    Lindorff, the credit management firm, priced €1.452bn-equivalent of notes on Friday to finance its buyout by Nordic Capital.

  • NEPI's book build increased to R1.4bn as investors clamour for deal

    New Europe Property Investments (NEPI), an eastern European focused property company, increased the size of its accelerated book build on Monday after the deal was significantly oversubscribed.

  • Steinhoff completes rights issue in preparation for Frankfurt listing

    South African furniture retailer Steinhoff International has completed an R18.2bn capital raise, issuing 350m new shares as it repatriates capital ahead of its planned Frankfurt listing.

  • IBA assumes ISDAFIX administrator role

    ICE Benchmark Administration has assumed the role of administrator for ISDAFIX, the benchmark for the International Swaps and Derivatives Association's annual swap rate.

  • Asiamoney Best Domestic Bank Awards 2014: Philippines

    Each year we choose the leading bank, equity brokerage and debt house in each major market in Asia. In the Philippines, BDO Unibank returns to the top of the pile among domestic banks, while First Metro Investment Corp. beats its local rivals to take home the awards for best equity and debt coverage.

  • Huvepharma to finalise pricing on Tuesday

    Bulgarian animal drugs firm Huvepharma is set to announce a final price structure on its €275m acquisition loan this Tuesday.

  • Rare Wells Fargo Kanga prices tight to Aussie banks

    Wells Fargo made a rare visit to the Australian dollar market with a A$900m dual-trancher, pricing close to the leading Australian banks' bonds.

  • BES restructuring leaves subs behind

    The Bank of Portugal’s surprise decision to bail-out Banco Espírito Santo, splitting it into a good and bad bank with senior debt spun into the former and subordinated debt left with the latter, immediately caused sub debt to plummet by more than 10 points on Monday morning, while seniors leapt the other direction.

  • Safety in numbers will guide lending to Russia, say bankers

    A herd mentality will prevail among Western banks both in shunning Russian borrowers and in the eventual decision to start lending to them again, said loans bankers — irrespective of any formal rulings on the issue.

  • BSkyB deal raises hopes of investment grade bond issues

    The announcement of British Sky Broadcasting's acquisition of Sky Deutschland and Sky Italia and the financing arrangements for the transaction has raised the possibility of bond issues to boost the pipeline in the second half of the year.

  • Loans to Russian firms still legal, say lawyers

    Syndicated loans have escaped official inclusion in the European Union’s sanctions against Russian firms, lawyers have agreed unanimously, although the reprieve could be a moot point when it comes to doing business.

  • BMW revisits South African auto ABS

    BMW Finance is set to return to the South African auto loan securitization shelf it set up with Standard Bank in 2011 after having a dual tranche transaction rated by Moody’s.

  • HSBC’s investment bank swells thanks to Basel

    HSBC reported a year on year surge in its investment bank balance sheet this week, with loans and advances growing 20% to $303bn and risk weighted assets swelling 25% to $537bn. At group level, lending grew 12% to $1.047tr and risk weighted assets grew 13% to $1.248tr — increases entirely accounted for by the investment bank's growth, offset by balance sheet shrinkage in other areas, notably retail banking and wealth management.

  • UBS's UK head to join regulatory board

    Mark Yallop, UK CEO of UBS, will join the Bank of England's Prudential Regulatory Authority board as an independent member, starting in December. He is joined by Sandra Boss, an investment banking director at McKinsey, who starts in September.

  • MSCI launches new indices for investors avoiding Russia

    Index provider MSCI has launched new indices protecting investors from exposure to the Russian markets as the political turmoil in the region rages on, and may yet cut sanctioned VTB Bank from its MSCI Russia Index.

  • EMF Group postpones planned €240m bond issue

    Empik Media & Fashion (EMF Group) has postponed the sale of €240m of notes due to adverse market conditions, even though the firm had already set price talk at 8.5%-8.75% on the projected deal.

  • NEPI seeks R1.14bn in South African equity raise

    New Europe Property Investments (NEPI), an eastern European focused property company, hopes to raise around R1.14bn ($106.7m) from the issuance of new shares onto the Johannesburg Stock Exchange in an accelerated book build on Monday.

  • Bahrain IPO market to reopen with Zain Bahrain listing

    Kuwaiti mobile operator is to sell 15% of its holding in its subsidiary Zain Bahrain as the company is set to launch Bahrain’s first IPO since 2010 next month.

  • Qingdao Develop Way mines for $120m three year

    Chinese commodity trader Qingdao Develop Way Industrial Co has opened up a $120m three year loan with Deutsche Bank as the mandated lead arranger and bookrunner. The loan comes with three guarantors as well as security-based on Glencore China’s accounts receivables.

  • Three retweets for the tweet of doom

    It’s difficult enough being a loans banker these days. But worse still when a big chunk of your expected business for the year hangs on the publication of a set of rules drafted to capture a wide range of divergent political motivations in a complex, ever-changing international stand-off. And when receiving those rules depends on wading through a stream of mundane celebrity gossip on Twitter it constitutes a form of torture.

  • F&P preps first antipodean credit card ABS

    Fisher & Paykel Finance is preparing a NZ$283.25m credit card ABS which arranger Westpac New Zealand says is the first ever term securitization of credit card receivables in either New Zealand or Australia.

  • UBS leverages the power of the image

    The DCM revenues of UBS surged this quarter, in part because of strong performance from the bank’s leveraged finance business. To the untrained eye, that might seem a direct result of the burst of high yield bond issuance in recent months. But Blog thinks otherwise.

  • China Everbright to rejig ownership structure

    State-owned China Everbright (Group) Corp has obtained approval from the government to rejig its ownership structure, in a move that will see Everbright becoming a joint stock company.

  • StanChart hires Leung to head greater China M&A

    Standard Chartered has appointed Fred Leung as head of M&A for greater China. The appointment is effective immediately.

  • Total Derivatives: PBoC drives offers; Shibor tweak

    Short CNY swaps have been well offered on anticipation of more monetary easing from the People's Bank of China (PBoC). The curve is expected to bull steepen as a result. Meanwhile, China has adjusted the Shibor fixing time and Taiwan has relaxed restrictions on dim sum bond trading, writes Deirdre Yeung of Total Derivatives.

  • YOFC eyes listing on Hong Kong exchange

    Chinese optical fibre supplier Yangtze Optical and Cable Company (YOFC) is looking to list on the Hong Kong Stock Exchange having filed its preliminary prospectus to the city’s regulator on August 1.

  • China's Jingrui seals the deal on second try

    Extensive preparation and cheaper pricing saw Jingrui Holdings to the finish line when the single B rated property reattempted a debut dollar issue on Friday. The Chinese borrower had returned to the drawing board after its first stab at the five year non call three offering in May failed to garner enough investor interest.

  • BNP appoints regional head for Greater China

    BNP Paribas has appointed Paul Yang as the regional head for Greater China as well as country head for China, in addition to his current responsibilities as country head for Hong Kong and CEO of BNP Paribas’ Hong Kong Branch.

  • Beijing Enterprises Water fishes for $120m via ADB

    Beijing Enterprises Water Group has opened into syndication a $120m ‘B’ loan as part of a $240m fundraising that is supported by the Asian Development Bank.

  • ANZ picks Au Yeung as HK CEO

    ANZ's acting CEO for Hong Kong, Ivy Au Yeung, has been given the job on a full time basis.

  • Copeinca extends consent deadline for doc changes

    Peruvian fishmeal and fish oil producer Corporación Pesquera Inca (Copeinca) has extended the deadline for bondholders to consent to changes in its indenture that will allow owner China Fishery Group more freedom over the company.

  • Brazil’s GOL buys back 2023s, 2027s

    Brazilian low-cost airline GOL Linhas Aéreas Inteligentes (GOL) has bought back $186.6m of dollar bonds, the company said.

  • Raber steps up to lead StanChart capital markets

    Standard Chartered will be hoping its new head of capital markets will be in position longer than his predecessors as Henrik Raber becomes the third person to hold the job in as many years.

  • CBOE sees record VIX futures volume

    The Chicago Board Options Exchange traded about 68,033 volatility futures contracts Thursday night, breaking a record it set in July for trading in non-US trading hours.

  • Enterprise lines up fleet lease ABS

    Enterprise Fleet Management plans to sell next week a $800m fleet lease ABS, which would be the second deal for the issuer this year following a $801m issuance in February.

  • IFC tap creates largest London-listed offshore renminbi

    The International Finance Corporation (IFC) created the largest London-listed renminbi bond on Friday with a Rmb750m ($121.5m) increase of a January 2017 note, writes SSA Markets, a sister publication of GlobalRMB.

  • ISDA determines Argentina CDS credit event

    The International Swaps and Derivatives Association’s Americas Credit Derivatives Determinations Committee has resolved that a failure to pay credit event occurred in respect to Argentina.

  • DB completes first series of RMB option trades under SAFE

    Deutsche Bank has executed the first series of renminbi option trades for Mengniu Dairy, as well as other Chinese corporates based onshore, under new regulation from China’s State Administration of Foreign Exchange, which became effective today.

  • Structured products let SG shrug off equity downturn

    Société Générale’s strength in structured products and equity derivatives allowed it to record flat revenues for equities markets, against a backdrop of low volatility and lower volumes which has seen most other investment banks report drops of more than 10% in their equity markets divisions.

  • Natixis closes ‘bad bank’, registers strong growth in capital markets

    Natixis posted solid results on Thursday as it reported a 26% increase in net income, and confirmed the close of its ‘bad bank’ GAPC at the end of June.

  • Alexander Forbes uses greenshoe to bring last pre-summer deal to a close

    Alexander Forbes, the South African retirement fund firm that in July completed the last big IPO before the summer break began, said on Friday that the greenshoe on its deal had been used in full.

  • Updated: Greenland $500m three year 8.6x subscribed

    China’s Greenland Holding Group priced a $500m three year bond on Thursday after setting up a new MTN programme last week. The state owned real estate developer was met with a boisterous reception from investors and was able to tighten pricing by 37.5bp.

  • HCP Global woos US investors for $380m loan

    Cosmetics packager HCP Global is targetting a US syndication for a $380m financing, banking on a strong reception from a market that is happy to invest into cov-lite deals. The facility is split into three facilities and has three banks at the top level.

  • Qihoo 360 triumphs over choppy markets with record $900m CB

    Chinese internet security provider Qihoo 360 Technology priced the largest convertible bond from an Asian ex-Japan issuer in four years taking home $900m on August 1 in spite of a challenging market backdrop.

  • RMB round-up: August 1, 2014

    In this round-up, quarterly RMB-denominated cross-border trade with China fell 2%, RMB deposits in Hong Kong also contracted slightly, while Hong Kong RMB remittances jumped nearly 20%.

  • Jingrui takes second shot at dollar debut

    Jingrui Holdings has brought back a debut dollar deal that was put on ice two months ago as a result of poor market conditions. This time around, the single B rated borrower is flanked by a larger group of bookrunners and came out with more generous initial pricing for the five year non call three on Friday.

  • Thai Reit to make Impact with $623m IPO

    Bangkok Land, one of Thailand’s largest property developers, has obtained approval from the regulator to go ahead with the listing of its real estate investment trust — the first for the country.

  • EOC to raise more than $150m with Singapore listing

    Oslo-listed EOC, which is acquiring the offshore marine operations of its largest shareholder Ezra Holdings, is looking to raise more than $150m through a secondary listing on the Singapore Stock Exchange.

  • IFC Devt doubles to HK$10bn with 16

    IFC Development has wrapped up a HK$10bn ($1.29bn) self-arranged club with 16 banks, doubling its fundraising in a repeat of a financing it signed in 2012.

  • Shanghai Electric mandates eight for debut

    Shanghai Electric Group is looking to make its inaugural issue in international markets. The local government owned enterprise will be meeting investors next week for a proposed dollar bond.

  • Safe adds Rmb7.3bn to RQFII programme in July

    China’s State Administration of Foreign Exchange (Safe) handed out Rmb7.3bn ($1.2bn) of quotas to seven licensed Renminbi Qualified Foreign Institutional Investor (RQFII) firms this month, with one getting its first ever quota.

  • ABC returns to Taiwan market with dual tranche Formosa

    Agricultural Bank of China Hong Kong branch (ABC HK) returned to Taiwan's Formosa bond market with a Rmb2bn ($324m) dual tranche bond on July 30.

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 18 Aug 2014
1 JPMorgan 215,971.90 822 7.91%
2 Barclays 203,469.57 697 7.45%
3 Deutsche Bank 198,268.00 785 7.26%
4 Citi 192,847.53 709 7.07%
5 Bank of America Merrill Lynch 184,602.45 658 6.76%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 19 Aug 2014
1 BNP Paribas 33,407.13 146 7.57%
2 Credit Agricole CIB 24,087.32 95 5.46%
3 HSBC 22,170.66 125 5.02%
4 UniCredit 20,938.85 102 4.74%
5 Commerzbank Group 20,285.28 116 4.60%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 26 Aug 2014
1 JPMorgan 20,187.61 96 9.15%
2 Goldman Sachs 19,786.26 62 8.97%
3 Deutsche Bank 18,686.20 63 8.47%
4 UBS 16,830.14 66 7.63%
5 Bank of America Merrill Lynch 16,179.41 55 7.33%