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News Archive

  • Funding scorecard: Sovereigns

    Read on to find out how much funding European sovereigns have left to do in the final quarter of the year.

  • Investor focus: funds feel the pain at short end

    Money market funds — a major buyer of short-dated sovereign, supranational and agency paper — are pushing to buy longer-dated assets in a bid to find yield for their investors. Some have gone so far as to slash their fees.

  • Rhiag prices €50m tap at par

    Rhiag, the Italian car parts distributor, has priced a €50m tap of its €215m 2020 bond at par.

  • Arrow Group backs £158m Capquest acquisition with debt

    Arrow Group, the UK consumer debt management firm, has offered to buy its rival Capquest from Towerbrook Capital Partners for £158m in a deal that will use a Goldman Sachs bridge loan.

  • Shinhan BNP Paribas AM in debut Korea RQFII licence

    Shinhan BNP Paribas Asset Management has become the first Korean institutional investor to receive a licence to access China’s onshore capital markets via the renminbi qualified foreign institutional investor (RQFII) scheme.

  • Tata Motors drives with caution to deliver hot bond

    Tata Motors (TML) delivered a top quality drive-by bond on Thursday. Not only did the 5.5 year offering prove so popular that 317 investors were biting the issuer's arm off to get an allocation, but TML was also able to meet a price target that bankers said was demanding, as well as extend its maturity profile by issuing an additional last-minute 10 year bond.

  • KraneShares and Bosera switch China ETF to MSCI China A share index

    US-based exchange traded fund (ETF) provider KraneShares, in partnership with China’s Bosera Asset Management, moved their China A ETF product to the new MSCI China A International Index on October 24.

  • RMB round-up: October 24, 2014

    In this round-up, RMB deposits in Taiwan break past Rmb300bn in September, Macau RMB deposits and RMB cross border trade fell slightly in August, the Hong Kong-Shanghai Stock Connect initiative looks likely to be launching later than expected, and a Canada-China currency swap line could be coming in November.

  • ICBC launches UCITS compliant RQFII fund in Luxembourg

    Industrial and Commercial Bank of China (ICBC) Europe has launched a Renminbi Qualified Foreign Institutional Investor (RQFII) fixed income fund that is compliant with the European Union directives on Undertakings for Collective Investment in Transferable Securities (UCITS). The fund is the first RQFII fund to be issued by an EU registered Chinese bank.

  • Standard Chartered takes from Pimco for head of RMB sales

    Standard Chartered has created a new role of head of RMB sales, appointing Zhou Cheng Gang to the position. Zhou joined from Pimco and is based in Hong Kong, reporting to George Sun, head of financial markets sales for greater China and Northeast Asia.

  • HKEx, China Merchants Group sign MoU on RMB derivatives

    Hong Kong Exchanges and Clearing (HKEx) and China Merchants Group (CMG) signed an agreement on October 22 to establish a strategic alliance for new RMB-denominated products.

  • Govvie and corporate bond bankers brace for QE…

    Capital markets are rife with talk of the European Central Bank wading in to buy everything in sight in new markets in an attempt to stimulate economic activity in the single currency bloc. But although sovereign bond bankers are hopeful of attracting an official bid, corporate bond counterparts, whose market was at the forefront of speculation of an ECB visit earlier in the week, were unenthused about what would be an unwelcome guest. Jon Hay, Tessa Wilkie and Craig McGlashan report.

  • Goldman Sachs EUR1.25bn FRN Oct 19

  • Cédulas faces face lift

    The Spanish covered bond law could be set for profound change that will bring it into line with the best in show schemes. However, as the claim of existing holders would be considerably diminished, a huge liability management exercise is justified.

  • Leaseplan EUR750m FRN Apr 17

  • ANZ EUR1bn FRN Oct 19

  • Wells Fargo EUR1.25bn 1.125% Oct 21

  • Peru, Chile set for rare bond appearance as Colombia prefunds

    Bankers are expecting scarcity value to drive strong demand as Peru and Chile consider their first international bond market outings since 2012. Both sovereigns will be encouraged by Colombia’s continued record breaking performance in bond markets during their absence, epitomised by Tuesday’s 10 and 30 year tap.

  • Citi EUR1.5bn 1.375% Oct 21

  • LatAm roars back as SQM notches tight return

    Just a week ago, some debt bankers were worried that broad volatility could shut down LatAm bond markets for the rest of the year. But on Thursday Sociedad Química y Minera de Chile (SQM) notched a new issue concession of close to zero for a refinancing exercise as Chilean corporates became the main beneficiaries of what proved to be excellent issuance conditions.

  • Cédulas left with dregs in new Spanish covered law

    Spain’s new covered bond law, if passed, will mean a vast improvement in the quality of the country’s covered bond collateral – but could come at the expense of holders of the old bonds, who will find their deals backed by a dwindling pool of poor quality loans, unless they exchange into new deals.

  • Brazilian duo eye funding but election pessimism grows

    Equity markets are responding more strongly than bond markets to pessimism about Brazil’s election scheduled for Sunday, say bankers covering the country. However, that may only mean the bond markets have further to fall should incumbent Dilma Rousseff retain power, said one LatAm syndicate banker at a Brazilian bank on Thursday.

  • What's to see in ECB's Rorschach test?

    Europe’s banks are about to get a reality check. Or so say advocates of the European Central Bank’s comprehensive assessment, the results of which come out on Sunday and mark a major event in post crisis banking regulation.

  • Unacem looks to cement debut

    The lone Peruvian borrower in the pipeline is cement and concrete company Unión Andina de Cementos (Unacem), which will finish a roadshow on Friday and hold conference calls on Monday in advance of of a potential debut bond issue.

  • Altisource SFR ABS could be victim of Ocwen fallout

    Altisource Residential (Resi) is believed to be on pace to acquire enough single-family rental properties to issue its first securitization early next year. But the latest Ocwen Financial investigation could derail those plans.

  • Arkema braves weaker market, sells €700m M&A hybrid well

    Arkema, the French chemicals company, launched its hybrid bond issue successfully on Thursday, having decided to press ahead with the deal despite market conditions that are much less favourable for higher risk deals than in September.

  • EBRD agrees first loan under Sustainable Resource Initiative

    The European Bank for Reconstruction and Development has agreed a €50m loan to Türkiye Sınai Kalkınma Bankası, the EBRD’s first credit line under its Sustainable Resource Initiative.

  • KfW finally finds window for long-awaited C$ return

    KfW this week returned to the Canadian dollar market in benchmark size, the first time it had done so in more than a year.

  • Quebec enjoys demand at long end in Swiss francs

    Swiss franc investors snapped up a long dated Quebec issue this week following a shift in demand toward 10 year paper.

  • Stockland successfully places Australia’s first green bond, but no blowout

    Stockland, one of Australia’s largest property developers, on Thursday launched the first green bond from an Australian issuer. The €300m bond, rated A-, was sold into a European market that had recovered well from a bout of turbulence last week, and was fully placed with high quality investors. But it was no blowout.

  • Hotels tap cheap financing with timeshare ABS

    Timeshare ABS issuance has picked up as hotel operators have taken advantage of cheap funding. But some investors think spreads have got too narrow for timeshare-backed notes because macroeconomic factors could make it more difficult for operators to manage and sell timeshare properties.

  • People & Markets News in Brief

    UBS appoints new levfin heads - SG heads to the Wharf - Leeming picked for RBS hybrid job

  • Immediate manager tiering in store as risk retention hits CLOs

    Recent spread volatility in the US CLO market calmed down this week, with several deals pricing back around the 150bp mark over Libor. Issuance is expected to continue to increase as managers try to lock in assets under management before risk retention rules come into effect in late 2016 — but the rules could force smaller managers out of business and cause serious legal headaches for those that remain.

  • Rumours fly, opinions split as FIG market awaits its test results

    Senior figures in the European FIG market were oddly calm heading into what is perhaps the biggest regulatory event in Europe since the crisis era began: the release of the results of the European Central Bank’s comprehensive assessment of 130 banks on Sunday. Nonetheless, investors are bracing themselves for what is likely to be at least a short term bout of increased volatility after the results.

  • MTN Leak: Walking with ground sharks

    Deep down below the sea Smit Acharya swims happily. The BNP Paribas MTN dynamo is looking at fish in the Indian Ocean as we speak — or as we write and you read, more accurately.

  • US banks pay up for dollar access

    US banks returned to the dollar market this week following earnings releases and volatile conditions to print solid trades with juicy spreads for investors.

  • KfW USD3bn 0.875% Dec 17

  • Triple A rated MMFs look east for positive yields

    Faced with negative yields, lack of supply and an influx of cash, triple-A rated money market funds have had to broaden their outlook to generate positive returns and, for some, Asia offers the solution.

  • ESM EUR4bn 0% Oct 16

  • FMS-W USD1.5bn 0.625% Jan 17

  • Nigeria set for loans rush but macro concerns mount

    Nigeria is set for a busy run of syndicated loans, with bankers saying there could be at least six deals before the end of the year and that two of those – for IHS and Helios Towers – could be up to $1bn each. But while loans officials are optimistic about African lending and Nigeria in particular, analysts suggested there could be a rush to beat the storm clouds gathering over the country’s economy in 2015.

  • Market hankers after sovereign QE but doubts raised

    Growing indications that the European Central Bank's moves so far have not been enough to boost falling inflation expectations, or improve a flat-lining real economy in Europe, have some market participants hoping that the central bank will unveil a round of sovereign bond buying to shock the economy back to life. But the ECB’s actions may fall short of expectations.

  • S&P says Swedish mortgage plan is positive

    Standard & Poor’s has followed Moody’s in saying that a Swedish proposal to cap new interest-only loans at 50% of a property’s value, rather than the 75% maximum in force today, is credit positive. This is because it will lead to a lower mismatch between an issuer’s assets and liabilities, the main source of rating volatility for Swedish issuers.

  • French programmes shrug off rating watch as ECB gears up

    Fitch put the AA+ rated covered bond programmes of Caisse Française de Financement Local (Caffil) and Compagnie de Financement Foncier (Coff), and the public sector programme of BNP Paribas, on rating watch negative (RWN) last Friday (October 17), following identical action on the French sovereign earlier in the week.

  • ECB tightening may hit ABS participation

    More investors than ever before expect securitization volumes to rise in the next 12 months, according to Fitch's latest quarterly investor poll. But active ABS investors are concerned that the spread tightening attributed to the European Central Bank’s impending purchases will render returns in the asset class insufficient to grow or even maintain investor participation.

  • Ford’s demand untouched by volatility, spreads drop

    Ford Credit Europe Bank’s second Globaldrive German auto ABS of the year was priced this week with a similar level of demand to its first, and at lower spreads, as secondary trading in the European ABS market remained cautious.

  • Stockland first Aussie green bond no blowout

    Stockland, one of Australia’s largest property developers, on Thursday launched the first green bond from an Australian issuer. The €300m bond, rated A-, was sold into a European market that had recovered well from a bout of turbulence last week and was fully placed with high quality investors. But it was no blowout.

  • Arkema braves weaker market, sells €700m M&A hybrid soundly

    Arkema, the French chemicals company, launched its hybrid bond issue successfully on Thursday, having decided to press ahead with the deal despite market conditions that are much less favourable for higher risk deals than in September.

  • CBPP3 is central to covered pricing and not LCR treatment

    The primary covered bond market picked up after a week without any issuance, just as the European Central Bank’s third covered bond purchase programme (CBPP3) got underway. All four deals issued this week were ineligible for the programme which, from a pricing perspective, made more a difference than their preferential treatment under newly established liquidity rules.

  • Russian loans in view as PSB, Otkritie and Acron line up

    The year could still see more Russian loans being signed, with Otkritie Financial Corp Bank and Promsvyazbank deals likely and Acron reviving discussions, say loans bankers. But the overall outlook for Russian borrowing in 2015 has become bleaker this week amid falling oil prices, the growing prospect of a recession and speculation around a possible sovereign downgrade.

  • No single-As from SCF but mezz on table

    Santander Consumer Bank’s Finnish arm decided against selling its first ever single-A rated Class C bonds this week, but the issuer joined Ford in the primary market during a week of cautious secondary trading.

  • EIB backs ABS guarantees to spark wider SME lending

    The European Investment Bank has said public sector guarantees could kick start ABS volumes in Europe and potentially double the size of the market, which it said was critical to improve small and medium-sized lending in some countries where SME ABS is “non-existent”.

  • Loans, news in brief — October 24, 2014

    YIT — EuropaCorp — Notemachine

  • Credit Suisse looks to untapped talent

    Credit Suisse has been on the road less travelled. Over the past few years, the bank has analysed how to manage an investment bank, overhauling recruitment, talent management, and performance. With the European fee pot turning, the work looks like it is paying off.

  • This was never about ABS — the ECB is rudderless

    The European Central Bank put a lot of effort into telling everyone securitization’s direct link to the real economy was the reason it deserved to be the principal target of asset purchases. Now that illusion has been shattered by reports it is considering corporate bond purchases, the ECB should just get on with the broad-based cash injection it clearly intends.

  • Euros in vogue with sterling in the wings

    More euro-denominated transactions are ready to hit the European ABS pipeline this month, but drawing out sterling transactions is proving a tougher assignment for syndicate teams who are battling against well funded issuers and anticipation of European Central Bank purchases.

  • BTP Italia demand slumps as Greek exit criticised

    Italy has sold its smallest BTP Italia since the dark days of the eurozone debt crisis, partly because of a sharp fall in retail demand. The lack of domestic interest — despite the coupon on offer increasing during the book build process — could be a warning sign for the sovereign, said analysts, although others argued there were more technical aspects at play.

  • Com Hem prices Skr2.5bn tightly, to refi expensive bond

    Swedish cable operator Com Hem priced its Skr2.5bn (€272m) bond tightly on Thursday. It will use the proceeds to refinance Skr3.5bn of senior secured notes.

  • Jimmy Choo defies market turmoil by avoiding syndicate ‘insanity’

    Bankers this week heralded the success of Jimmy Choo’s initial public offering, which was priced in the depths of a highly volatile equity market, as vindication of the lean syndicate model. Some hoped it would bring an end to the bulging bank groups branded insane by one financier.

  • UBS sees continued spike in ETN interest, AUM

    UBS has seen its exchange traded note program assets more than double in just over a year. The program had approximately $2bn at the end of July 2013 and now has around $4.5bn.

  • Husqvarna trims revolver by Skr1bn

    Husqvarna, the Swedish gardening equipment maker, has extended its syndicated revolving credit facility for another five years and reduced the amount from Skr6bn (€650m) to Skr5bn, according to its third quarter financial report.

  • SAP loan gets 100% hit rate, Meda expected to follow suit

    SAP, the German software firm, closed syndication of the €7bn bridge facility for its $8.3bn acquisition of US expenses software firm Concur at the end of last week. It was the latest in a series of deals to obtain the participation of all the invited banks, fueling expectations that upcoming deals will also be popular.

  • SSA issuers hike new issue premia in tougher conditions

    A pair of borrowers braved dollar issuance this week after volatility in US Treasuries last week led to a pair of undersubscribed deals. But so far the market recovery has taken the shape of a pair of ultra conservative German borrowers at the short end of the curve. Bankers will have to wait until next week to see an issuer test demand in the belly of the curve.

  • Styrolution widens pricing while Ineos steps in on junior tranche

    German plastics firm Styrolution has widened pricing on its €1.05bn-equivalent five year term loan ‘B’, amid concerns from investors about the cyclical nature of its business.

  • Market shrugs off volatility as senior goes strong, more to come

    The senior unsecured FIG market underwent a strong recovery this week after a shaky patch following poor US data last week. Not even the impending release of the European Central Bank and European Banking Authority’s comprehensive assessment results on Sunday could stop issuers successfully tapping the senior market, and bankers are hopeful of more supply next week.

  • Turkish corps line up to sign loans

    Internationally syndicated Turkish corporate loans are rare, but this week has seen three push deals forward. Cake maker Ulker launched its loan into syndication on Monday, Turk Telekom subsidiary Avea completed a club loan and Yildiz dairy subsidiary Ak Gida is in the final stages of syndicating an Islamic loan.

  • Daisy group splits £265m debt into term loan and revolver, adds a PIK

    UK business communications provider Daisy Group has split £265m of senior debt backing its buyout into two loan facilities and added a PIK loan.

  • Walgreens lines up European bond for Boots acquisition

    US pharmacy chain Walgreens is set to launch a three day roadshow on Wednesday October 29 for a potential debut bond in euros, sterling, or both.

  • KoRes mines demand for five-year Swissie

    State-owned mining group Korea Resources Corporation (KoRes) took advantage of relatively stable market conditions on Thursday to notch a record low coupon on its inaugural Swiss franc bond.

  • No welcome from corporate bond market for ECB buying plan

    Bankers reacted with a mixture of scepticism and scorn this week to reports that the European Central Bank may be considering buying corporate bonds, as part of its efforts to restart the eurozone economy.

  • Verizon’s $6.5bn widens after punchy 2bp NIP

    The US high grade bond market may have shrugged off last week’s volatility this week, but Verizon Communications found investors in determined mood.

  • … but ECB covered bond buying scheme dead on arrival as supply slumps

    The European Central Bank is estimated to have bought well over €1bn, and possibly close to €2bn, in the first week of its third covered bond purchase programme (CBPP3) and traders have reported a tripling of flows. But limited dealer inventories are finite and issuance prospects mean it can only be a matter of time before the programme peters out, writes Bill Thornhill.

  • Investors suck up 0% coupon to buy short-dated ESM deal

    More borrowers could follow a ground breaking deal from the European Stability Mechanism this week — a two year deal that is understood to be the first ever 0% coupon on a benchmark from a supranational or agency borrower.

  • NIP slip as Turkish duo brave bond market

    Two Turkish financial institutions, Isbank and TSKB, braved the market this week with new issue premiums that edged lower than recent comparable deals, showing how the market has stabilised since Yapi Kredi printed its bond on October 15.

  • BMW block breaks silence, but no great splurge expected

    An institutional investor in German car manufacturer BMW sold €198m of preferred shares on Monday night, but the deal was unlikely to inspire other block trades, bankers said, as the equity markets remain highly volatile.

  • Fresenius launches $900m bond

    Germany’s Fresenius Medical Care launched a $900m high yield bond issue in the US market on Wednesday, via Wells Fargo, Citigroup, Deutsche Bank, Scotia Bank, HSBC and Suntrust Robinson Humphrey.

  • Equity capital markets, news in brief — October 24, 2014

  • Molecular Partners latest IPO failure, but others get through

    Swiss biotech firm Molecular Partners became the latest victim of the recent bout of volatility in Europe’s markets, as it put its planned listing on hold on Tuesday. More deals could yet fail, bankers said.

  • Virgin Money IPO down, for now, but not yet out

    Virgin Money said it would miss its October target for completing its IPO, after it postponed the start of bookbuilding last Friday (October 17). Bankers close to the deal insisted that the company was waiting for more stable markets to return, rather than pulling the deal entirely.

  • Morgan Stanley almost doubles equity underwriting revenues

    Morgan Stanley reported third quarter (Q3) earnings of $1.7bn last Friday, up from $889m in the same period the year before. The improvement was driven by its wealth management and institutional securities businesses.

  • WMBA calls for trade reporting data standards to manage risk

    International regulators must do more to implement standards for the reporting of over-the-counter derivatives trade data, according to Alex McDonald, CEO of the Wholesale Markets Brokers’ Association in London.

  • Russian firms look to Asia as ECM dries up

    Gazprom said on Tuesday that it might seek a listing in Hong Kong, in what is the latest tilt towards Asia from Russian companies hurt or worried by Western sanctions. The moves probably will not do much for funding issues, but developing relationships could be a prudent long-term strategy, said bankers.

  • KfW returns to C$ for five year benchmark

    KfW returned to the Canadian dollar market in benchmark size for the first time in more than a year on Thursday.

  • FMS-W open to private opportunities

    FMS Wertmanagement is open to opportunistic private placements ahead of the end of the year, after a $1.5bn long two year benchmark took it to nearly €11bn done of a 2014 funding target that it originally set out as €10bn.

  • EuropaCorp film studio gets up to $600m in loans

    French film studio EuropaCorp has closed $450m of five year loans with a $150m accordion option, replacing its existing $160m revolving credit facility. The company says it will use the increased financing to fund English language movies.

  • Romania, Lithuania print but pre-funding uncertain for others

    Romania and Lithuania priced euro-denominated bonds this week, prefunding for 2015. But emerging markets bankers said the lower European rates outlook could delay others planning issues in the currency. By contrast, dollar funding flows may be as strong as ever — despite the recent volatility as sovereigns try to lock in low rates before the market changes heart again on US growth outlook.

  • TLG edges towards success after dour book build

    German property firm TLG is covered on its IPO, bringing fresh confidence to the deal after its future looked to be in doubt only a day before.

  • BTP Italia volume drops as retail demand slows

    Italy has sold its smallest BTP Italia since the dark days of the eurozone debt crisis, partly because of a sharp fall in retail demand. The lack of domestic interest — despite the coupon on offer increasing during the book build process — could be a warning sign for the sovereign, said analysts, although others argued there were more technical aspects at play.

  • Spain riding high as M&A action returns

    Spain’s capital market boom is being undermined by the return of local lenders, but international banks are well placed to capture a bulging M&A pipeline, writes David Rothnie.

  • SocGen turns its back on the Tower

    Société Générale will move its London operations to Canary Wharf, consolidating its three different London sites into one building.

  • Asia HY pipeline healthy as bankers shrug off yield spike

    It has been a rollercoaster ride for investors in the Asia ex-Japan high yield market in recent weeks, with macro volatility and sector-specific issues in Chinese property names conspiring to make life uncomfortable for all but the most battle-hardened accounts. But with the situation stabilising this week, market participants are already predicting a quick return to form, writes Rev Hui.

  • Meda's Skr26bn loan syndication due before year end

    Swedish pharmaceutical company Meda will syndicate out the remaining Skr26bn (€2.83bn) of its bridge loan for its acquisition of Italian consumer healthcare firm Rottapharm Madaus before the end of the year, a banker at one of the arrangers has said.

  • Grand City Properties to issue €350m for buyback on Friday

    Grand City Properties, a Luxembourg-registered, Frankfurt-listed company that invests in German residential property, is expected to price about €350m of high yield bonds on Friday, a banker familiar with the deal said.

  • Com Hem set to price Skr2.5bn bond after IPO

    Swedish cable operator Com Hem is set to price today a Skr2.5bn (€272m) bond, which it will use to refinance Skr3.5bn of senior secured notes.

  • EIB backs ‘catalytic’ guarantees for ABS

    The European Investment Bank has said public sector guarantees could have a catalytic effect on ABS volumes in Europe and potentially double the size of the market, which it said was critical to improve small and medium-sized lending in some countries where SME ABS is “non-existent”.

  • Imtech rights take-up low, presses on with rump

    Dutch engineering firm Royal Imtech received only 51% take-up on its rescue rights issue, it said on Wednesday evening as it began a sale of the shares that went unsold.

  • Kredi where it's due: Yapi was right to defy market tone

    Turkish bank Yapi Kredi printed a $500m five year bond last week on a day when its curve widened by 25bp. Going ahead with the deal seemed self-defeating to many, but GlobalCapital believes Yapi Kredi behaved honourably, and investors should reward its honesty in future deals.

  • Styrolution widens pricing, Ineos steps in on junior tranche

    German styrenics producer Styrolution has widened pricing on its €1.05bn-equivalent five year term loan ‘B’, amid concerns from investors about its business model.

  • Chunky Samsung IPOs set to rejuvenate South Korean market

    The South Korean IPO market is set for its biggest volume in years in 2014, thanks to two units of Samsung Group aiming to raise some $2.5bn before the end of December. The macro environment is a challenge and the Korea Stock Exchange Kospi Index has slid around 2% so far in 2014. But early signs suggest that the Samsung names will be a hit among investors — and could turn the market around, writes Rashmi Kumar.

  • Leeming takes combined LM and hybrid role at RBS

    RBS has appointed David Leeming head of the combined liability management and hybrid capital DCM group.

  • ANZ and Lloyd's tap receptive FIG market

    Thursday brought a pair of surprising trades as ANZ took to the euro market to sell a floating rate senior bond and Society of Lloyd’s opened books on a sterling subordinated deal. Bankers were surprised to see ANZ hit the debt markets just a week ahead of releasing third quarter results, while Lloyd’s is the first issuer to tackle the subordinated debt market after a sharp sell-off last week.

  • Festive debut: TML books at $4.5bn for Diwali bond

    Tata Motors (TML) is looking to defy the poor performance of Indian high yield credit and is in the market with a 5.5 year dollar bond. Despite Thursday being a national holiday in India for Diwali, bankers said that the borrower was keen to take advantage of a constructive window amid recent volatility, and books are building well.

  • Promsvyazbank and Otkritie loans likely to get done

    Russia’s Otkritie Financial Corp Bank (formerly Nomos Bank) is likely to achieve a one year extension of the $240m loan it signed last year, say bankers, and has a “very committed” group of lenders to do the deal.

  • Schaeffler cuts debt cost with €1.2bn PIK

    The healthy demand for Schaeffler’s three tranche bond issue on Tuesday October 21, €1.2bn-equivalent of senior secured payment-in-kind toggle notes, will help the German car parts company to cut the interest rate burden of its indebted holding company.

  • Lithuania bags €3.65bn book for pre-funding

    Lithuania printed its €1bn 12 year bond on Wednesday with 0bp-5bp new issue premium, according to a syndicate official on the trade, having built a book of €3.65bn for the bond.

  • First unitranche bond facility for Italian PE acquisition

    Asset managers Tikehau IM and Emisys have provided a six year €14.2m unitranche bond facility for the acquisition by a group of investors led by LBO Italia of GF SpA, a manufacturer of automated filling machines for the pharmaceutical industry. It is the first time such a debt structure has been used for this type of deal in Italy, people involved said.

  • ABS purchases to leave ECB with ‘minimal credit risk’

    The European Central Bank’s focus on senior ABS tranches for its purchase programme means it will be taking on “minimal” credit risk, according to figures from Fitch, while the ratings agency also rejected the idea that the programme would lead to looser lending practices in Europe.

  • Poly Property builds HK$5bn four year loan

    Hong Kong listed Poly Property is close to wrapping up an HK$5bn ($645m) club loan to finance the construction of residential projects in Kai Tak.

  • PE firms talking to banks for Indian acquisition

    Private equity firms are sounding out banks for a loan to finance their purchase of a stake in Indian firm CMS Info Systems from Blackstone, which is currently the majority owner.

  • Hang Seng and Markit unveil iBoxx RMB index family

    Hang Seng Indexes and Markit this week launched the Hang Seng Markit iBoxx Offshore RMB Bond Index family (HSM iBoxx), which includes more than 600 indices classified according to criteria such as issuer types, sectors, rating, maturity and size.

  • Investors flag down Blue Bird for $200m IPO

    Indonesian taxi operator Blue Bird Group became a victim of weak global market conditions last week, which forced it to shrink its IPO by 33% despite books being covered within hours of launch.

  • Bright Food’s Manassen refinances for $285m

    Australian company Manassen Foods, which is partly owned by China’s Bright Food, has completed a $285m refinancing with a club of seven banks.

  • IDBI pays up to profit from falling Treasuries

    IDBI Bank priced a five year dollar bond on October 20. While volatile markets saw the issuer pay some new issue premium, it managed to take advantage of a good window to price just wide of its curve.

  • Aussie lenders warm to Asian names in search of loan growth

    Australian banks’ willingness to lend to borrowers in Asia outside their home market has grown markedly over the past three years as they look overseas for growth opportunities. Happily for them, this strategy has coincided with increasing interest from Asian family-run businesses and Chinese state-owned firms in acquiring assets in Australia and New Zealand. The result has been an intensification of banks' efforts to build relationships across the region, writes Shruti Chaturvedi.

  • SSI bags $146m with top pricing on rare IPO

    Luxury goods retailer SSI Group has raised Ps6.5bn ($146m) by pricing its IPO at the top of the range, with the rarity value of Philippine deals leading to books being multiple times covered.

  • Sesa Sterlite pushes back deadline for $500m refi facility

    Vedanta subsidiary Sesa Sterlite, which opened a $500m refinancing loan into general syndication on September 12, has pushed back the deadline for the fundraising.

  • CP Indonesia serves up $350m with seven

    Poultry feed producer Charoen Pokphand (CP) Indonesia’s $350m dual currency loan, which comes with a $50m greenshoe, has entered general syndication.

  • HCP packs $360m dividend recap for Taiwan

    Cosmetics packaging company HCP Global, which pulled a US targeted loan of $380m in August, has launched a Taiwan targeted syndication for $360m for its dividend recapitalisation instead. The company, which has picked four banks to lead the new deal, is offering generous margins in light of the use of proceeds and the high leverage the company will be left with.

  • eHi Car Services revs engine for $100m NYSE listing

    China’s eHi Car Services has started pre-marketing its $100m US IPO just weeks after filing a preliminary prospectus with the Securities and Exchange Commission.

  • Going all out this awards season

    It’s that time of the year again – awards season. Every banker is getting a pep talk about how to behave, calendars are jammed with meetings with every publication out there and the even most senior and inaccessible bankers suddenly become available for chit-chats with journalists.

  • Kim joins HSBC in Korea to lead securities and cap mkts

    HSBC has named Dojin Kim as CEO of its Korean brokerage arm, HSBC Securities. The former Goldman Sachs banker will also serve as the head of capital financing for Korea.

  • Isbank brings more Turkish supply, with 10bp premium

    Türkiye Iş Bankasi has tightened price guidance to 340bp area over mid-swaps on a 5.5 year dollar benchmark bond, bringing the third Turkish financial institution bond in a fortnight — after Yapi Kredi and TSKB — and offering around a 10bp new issue premium.

  • TML books at $4.5bn for Diwali bond

    Tata Motors (TML) is looking to defy the poor performance of Indian high yield credit and is in the market with a 5.5 year dollar bond. Despite Thursday being a national holiday in India for Diwali, bankers said that the borrower was keen to take advantage of a constructive window amid recent volatility, and books are building well.

  • Sky Solar brightens market with $150m IPO

    Hong Kong-based Sky Solar has opened books for a $150m US IPO, following a rally in stock markets that has seen the Nasdaq rise by around 4% in the past few days.

  • Hanjin opens Kexim backed three year

    Korean hotel and rental service provider Hanjin International Corp is out with guidance for a three year floating rate note guaranteed by the Export-Import Bank of Korea (Kexim).

  • Credit Suisse flies on FICC and ECM

    Credit Suisse reported surging revenues in its investment bank, with FICC and equity underwriting standout divisions. Profits at the bank, however, have been tempered slightly by higher losses in the investment bank's non-strategic businesses.

  • Boath to chair Barclays FIG group, Davey will be sole head

    Richard Boath will become chairman of Barclays' EMEA FIG business, leaving Ben Davey as sole head of EMEA FIG. The move comes following the departure of Allen Appen, head of FIG capital markets, to join Lloyds.

  • RMB commodities contract to launch on HKEx in December

    Hong Kong Exchanges and Clearing (HKEx) announced on Wednesday that it planned to introduce the first RMB denominated aluminium, zinc and copper mini futures on December 1.

  • Shengjing Bank pitches for HK listing

    China’s Shengjing Bank has filed a preliminary prospectus with the Hong Kong Stock Exchange, with a banker close to the deal suggesting the deal could be for up to $1bn.

  • Total Derivatives: PMI backs CNY bid; plenum nears end

    Solid Chinese PMI data has supported paying in CNY swaps, especially in five -years. Illiquidity has exaggerated price moves, as markets remain thin ahead of the conclusion of the potentially significant Fourth Plenum discussions later on Thursday, writes Deirdre Yeung of Total Derivatives.

  • Bank of China’s cross-border RMB index takes a hit

    Bank of China released on October 16 its latest cross border RMB index (CRI) report, which fell by 13% to 202 points due to lower usage of RMB for cross border trade settlement and direct investment.

  • Smoking Latin pipe adds Global Bank, Enap, Brazilian duo

    Corporate borrowers’ rush to raise money before earnings numbers go stale in mid-November looks to have begun in earnest in Latin America as still low base rates provide attractive conditions for issuers.

  • Falabella shops for $400m in wide open LatAm

    Chile-headquartered retailer Falabella sold $400m of 10 year bonds on Wednesday in a deal that LatAm debt bankers said confirmed the market was wide open as up to eight issuers from the region prepare bond issues before numbers go stale in the second week of November.

  • Insurance perps continue with Dai-ichi Life

    Dai-ichi Life is the latest Asian insurance company to tap the dollar market and has opened guidance on a new perpetual bond. It follows hard on the heels of Korean Re, which priced its debut bond on October 14.

  • Pemex to visit Europe

    Mexican government-owned oil company Pemex will visit European investors next week on a non-deal roadshow, a source close to the borrower said.

  • Multi-borrower SFR ABS held up

    Market participants including Colony American Finance have been talking about the first multi-borrower single family rental securitizations for months. But operational complexities could hold the asset class’s debut back even longer.

  • RMBS holders should prepare for Ocwen ‘worst case’

    Allegations made by New York financial watchdog Benjamin Lawsky that loan servicer Ocwen Financial backdated thousands of letters to borrowers, preventing them from appealing denials of loan modifications, could lead to increased servicing disruption and significant costs for residential mortgage-backed security (RMBS) investors, said analysts on Wednesday.

  • Jumbo deals weather regulatory storm

    JP Morgan and Citi announced jumbo RMBS deals this week, bucking a trend in which many would-be issuers have opted to retain jumbos on balance sheet rather than launch securitizations.

  • Markit: Europe's banks under scrutiny

    The fate of the eurozone’s ailing economy, and the policies undertaken to tackle the malaise, should have the biggest influence on spread direction in the coming months. But in the near term, Europe’s banking sector will be under scrutiny with the announcement of the ECB’s Asset Quality Review and the EBA’s stress test results on October 26.

  • Market scoops sterling riskies, put options

    Market participants, particularly institutional investors, have been picking up risk-reversals and put options on sterling against the dollar.

  • Infrax returns with rating, pockets the saving

    Infrax, the Belgian multi-utility, launched its first bond as a rated entity today, raising €250m of 15 year debt and benefiting from shedding the premium paid by unrated issuers.

  • Clarity needed on clearing rules for non-EU entities

    Market participants outside the EU are grappling with a European regulation that mandates clearing for non-EU-derivatives contracts, resulting in a lot of differences in interpretation, according to lawyers.

  • Arkema could test market conditions with hybrid tomorrow

    Arkema’s roadshow for its possible €600m-€700m perpetual non-call six year hybrid bond issue finished today in Germany, following investor meetings in Paris and London which the leads say were well attended.

  • Real money eyes long bonds, short CDS on ECB rumours

    Real money players are considering going long funded instruments such as bonds, versus unfunded instruments such as credit defaults swaps, in light of rumours that the European Central Bank may extend its asset buying program to include corporate bonds, according to strategists at Citigroup.

  • Nestlé’s second A$ of 2014

    Nestlé found strong demand for a six year Australian dollar bond on Wednesday, its second issue in the currency this year.

  • KfW to bring first Canadian dollar deal of 2014

    KfW is set to price its first Canadian dollar deal of the year on Thursday, after mandating banks for a five year bond on Wednesday afternoon.

  • FMS-W prints at tight end

    German wind-up agency FMS Wertmanagement priced on Wednesday afternoon the first benchmark in two weeks to come at the tight end of guidance.

  • Kommuninvest plans Swedish krona benchmark

    Kommuninvest unveiled plans to sell a Swedish krona benchmark within the next few weeks on Wednesday, while World Bank tapped a June 2019 green bond in the currency for an unusually large size.

  • Schaeffler cuts holdco debt costs with successful €1.2bn PIK sale

    The healthy demand for Schaeffler’s three tranche bond issue yesterday, €1.2bn-equivalent of senior secured payment-in-kind toggle notes, will help the German car parts company to cut the interest rate burden of its indebted holding company.

  • Molecular Partners latest IPO failure, others hang in balance

    Molecular Partners became the latest victim of the recent bout of volatility in Europe’s equity capital markets, as the Swiss biotech firm announced on Tuesday that it would have to put its projected listing on hold. Further deals could yet fall, bankers said.

  • Axa opens new higher risk US high yield bond fund using CDS

    Axa Investment Managers this week opened up to investors a new fund to offer flexible exposure to the US high yield market by investing in cash bonds along with an overlay of credit default swaps, to enhance potential returns over traditional US high yield funds.

  • Ford demand unscathed by volatility, spreads drop

    Ford Credit Europe Bank’s second Globaldrive German auto ABS of the year was priced on Wednesday with a similar level of demand to its first and at lower spreads, as secondary trading in the European ABS market remained cautious.

  • Daisy group splits £265m debt into term loan and revolver

    UK business communications provider Daisy Group has split £265m of senior debt backing its buyout into two loan facilities.

  • Romania crunches guidance to print inside dollars

    Romania built a book of €3.8bn on Tuesday for its €1.5bn 10 year bond, and printed the deal inside its own dollar curve. But Romania paid a higher new issue premium than usual for its deal, indicating investor caution after the sell-off in emerging market bonds last week.

  • Yasar roadshows for sub-benchmark to refinance bond

    Turkish consumer products company Yasar Holdings is embarking on a roadshow with Barclays and Citi. Investor meetings for the deal start in London on Friday and take place in the US on Monday, Tuesday and Wednesday.

  • Husqvarna trims revolver as results improve, CFO resigns

    Husqvarna, the Swedish gardening equipment maker, has extended its syndicated revolving credit facility for another five years and reduced the amount from Skr6bn (€650m) to Skr5bn (€542m), according to its third quarter financial report.

  • Gränges rolled out Skr1.8bn revolver ahead of IPO

    Swedish rolled aluminium producer Gränges signed a new Skr1.8bn ($247.8m) five-year multi-currency revolving credit facility with two Nordic banks, before its listing on Nasdaq Stockholm earlier this month.

  • EBRD agrees €50m Turkish loan under Sustainable Resource Initiative

    The European Bank for Reconstruction and Development has agreed a €50m loan to Türkiye Sınai Kalkınma Bankası, the EBRD’s first credit line under its Sustainable Resource Initiative (SRI).

  • TSKB prints at 'low double digit' new issue premium

    Turkish Development Bank Türkiye Sınai Kalkınma Bankası printed its $350m bond at 380bp over mid-swaps on Tuesday, ratcheting in pricing 20bp inside initial price talk and building a $1.3bn book. But leads estimated that the note still needed to pay a double digit new issue premium as investors remained cautious after last week’s volatile market.

  • Lithuania guides for €1bn bond, offers 25bp premium

    Lithuania has released initial price thoughts for a €1bn 12 year bond at 115bp over mid-swaps, offering a 25bp new issue premium, in line with the pick-up offered at the same stage by Romania on Tuesday. Bankers away from the deal said that they expect 10bp-15bp of tightening before the deal prints.

  • Helvetia takes to senior market to finance acquisition

    Switzerland’s Helvetia Insurance returned to the bond market on Tuesday to sell a dual tranche Swiss franc deal, its second foray into the market this month. The senior debt will be used to help finance its recent takeover of rival insurer Nationale Suisse.

  • US issuers continue offering big premiums in senior

    Three issuers, two of them US banks fresh from earnings releases, announced deals to a buoyant euro denominated senior unsecured market on Wednesday.

  • Bright Food $800m Tnuva club loan delayed

    Bright Food’s $800m club loan for its purchase Tnuva has been delayed as there is a reassessment of the valuation of the Israeli company after it reported a year on year decline in revenue for the second half of 2014.

  • Russian companies look to follow Asian debt forays with equity repositioning

    Gazprom's announcement on Tuesday that it could seek a listing in Hong Kong made it the latest Russian firm to pursue an Asian listing in part to solve liquidity issues in the wake of sanctions. While the Asian market is still too nascent to solve Russian companies' big funding troubles, developing relationships with investors could be a valuable long-term strategy, bankers said.

  • FIG returns to life ahead of AQR

    Activity in the FIG market picked up on Wednesday after a sluggish start to the week, with Goldman Sachs and Wells Fargo both announcing euro denominated trades. The issuers are likely to benefit from improved sentiment compared to earlier in the week and a dearth of supply from European issuers ahead of the results of the Asset Quality Review and stress tests, which will be released on Sunday.

  • ECB tightening will hit ABS participation, say investors

    More investors than ever before expect securitization volumes to rise in the next 12 months, according to Fitch's latest quarterly investor poll. But active ABS investors are concerned that the spread tightening attributed to the European Central Bank’s impending purchases will render returns in the asset class insufficient to grow or even maintain investor participation.

  • ECB should do QE — but not in my backyard

    Quantitative easing sounds like a great idea until it jumps on your own lap with its heavy boots.

  • SSAs make cautious return to issuance

    Sovereign, supranational and agency bankers are waiting for a borrower — possibly Sweden — to attempt a benchmark in the belly of the curve to test the strength of sentiment after extreme volatility in US Treasury markets last week led to a pair of undersubscribed deals in dollars.

  • eHi pre-markets $100m NYSE IPO

    China’s eHi Car Services started pre-marketing its $100m US IPO just weeks after filing a preliminary prospectus with the Securities and Exchange Commission.

  • TSKB, Romania print as EM is revived

    CEEMEA deals have returned after the sell-off last week. Despite a persistent soft tone to the market TSKB printed its $350m five year bond on Tuesday while Romania sold a €1.5bn deal. Meanwhile, Polish coal company JSW has embarked on investor meetings for a bond and Lithuania has put out guidance for a new deal.

  • JSW starts roadshow for bond

    Jastrzębska Spółka Węglowa started the roadshow for its dollar denominated Reg S/144A bond on Wednesday (22 October) via Credit Suisse and JP Morgan.

  • HSBC boosts Korean securities with new CEO

    HSBC has named Dojin Kim CEO of its Korean brokerage arm, HSBC Securities in Seoul. The former Goldman Sachs banker will also serve as the head of capital financing for Korea.

  • Haven status drives investors to KHNP

    Korea Hydro & Nuclear Power (KHNP)’s new five year fixed rate note was six times over-subscribed on Tuesday. The Aa3/A+/AA- rated borrower offered investors something of a safe haven play amid the recent market volatility and strong demand drove pricing flat to the issuer’s existing curve.

  • Bright Food’s Manassen seals $285m refi with seven

    Australian company Manassen Foods, which is partly owned by China’s Bright Food, has completed a $285m refinancing with a club of seven banks.

  • Canada could see $30bn export boost from RMB, says new study

    A new report by the Canadian Chamber of Commerce highlights the business benefits of launching an RMB hub in North America. Should Canada get there first, the report estimates that the country would see a $30bn boost in exports over the next ten years.

  • Colombia picks window to beat 30 year yield record

    Gloomy prospects for global growth may have caused severe bout of volatility in the past week, but Colombia emphatically demonstrated the silver lining that the Treasury has provided borrowers. The sovereign tapped its 10 and 30 year benchmarks for $500m each on Tuesday as part of a pre-funding exercise during what the country’s debt management head described as a “spectacular” window for new issuance.

  • Hang Seng and Markit launch new iBoxx RMB family

    Hang Seng Indexes and Markit this week launched the Hang Seng Markit iBoxx Offshore RMB Bond Index family (HSM iBoxx), which includes more than 600 indices classified according to criteria such as issuer types, sectors, rating, maturity and size.

  • RMB futures launch in Singapore, turnover exceeds Rmb1.1bn

    The Singapore Exchange (SGX) this week launched FX futures contracts for Chinese onshore and offshore renminbi (USD/CNH and CNY/USD). Transactions in the new RMB futures achieved a first day volume of 1,836 contracts on October 20, or approximately Rmb1.1bn in notional value ($180m), said SGX.

  • Just Dial to make connection for $163m deal

    Indian online search engine Just Dial, which listed in May last year, is considering raising up to Rp10bn ($163m) in a deal that will put some life back into the country’s equities market.

  • India, Korea and Sri Lanka to stand tall in 2015: BlackRock

    BlackRock predicts that countries with the least sensitive to US interest rates will have the best performing equity markets in 2015. Its top picks include India, Sri Lanka and Korea.

  • Private student loan ABS still dragging

    Student loan ABS issuance has declined in recent years as underwriting standards have improved, and the majority of deals that have come to market have been backed by federal student loans under the defunct Federal Family Education Loan Program (FFELP). Issuance could continue to drag for a while yet, according to Standard & Poor's.

  • Arranger risk retention ‘a unicorn’ says LSTA exec

    A secondary option for risk retention in collateralised loan obligations, proposed by the FDIC in the final version of the Dodd-Frank rules on Tuesday, has been dismissed as “completely unworkable” by a senior executive at the Loan Syndications and Trading Association.

  • Auto ABS hit by risk retention paradox

    New risk retention rules, which will require securitization sponsors to retain a 5% stake in new issuances, could impact auto ABS deals more than mortgage-backed ones. The rules, mandated by Dodd-Frank in response to the financial crisis, were finalised by the FDIC on Tuesday — but some observers say they will penalise the wrong asset class.

  • FCMs face buyside pressure to reduce clearing fees

    Futures commission merchants (FCMs) are expected to come under increasing pressure from the buyside to reduce the clearing fees that they charge as trading volumes increase. This comes following an increase in rates charged by some FCMs in a bid to cover the rising costs of business associated with the implementation of various regulatory changes.

  • Metro €500m bond works with a third the book of Airbus’s

    Metro, the German supermarket group, strengthened the narrative that Europe’s corporate bond new issue market is recovering, with a €500m seven year issue on Tuesday.

  • No welcome in corporate bond market for ECB buying plan

    Bankers have reacted with a mixture of scepticism and scorn to reports that the European Central Bank may be considering buying corporate bonds, as part of its efforts to restart the eurozone economy.

  • Funds buy up iTraxx Main vol in midst of sell-off

    Hedge funds have been picking up volatility in iTraxx Main and Crossover during a week in which credit volatilities have been repriced higher, with Crossover being the most affected.

  • UBS brings in levfin heads as Laino departs

    UBS has appointed new heads for its leveraged finance business, following the departure of Giles Borten and Allison Howe from its EMEA operation.

  • This was never about ABS — the ECB is rudderless

    The European Central Bank put a lot of effort into telling everyone securitization’s direct link to the real economy was the reason it deserved to be the principal target of asset purchases. Now that illusion has been shattered by reports it is considering corporate bond purchases, the ECB should just get on with the broad-based cash injection it clearly intends.

  • Markit iBoxx index to boost liquidity in offshore RMB

    A new offshore renminbi bond index launched by Markit this week could improve liquidity in the market, enhancing the opportunity for derivative products linked to the indices.

  • European corp market still open, but hybrids hit by volatility

    So far this year, European investment grade bonds have ridden out any patches of volatility relatively unscathed, but last week’s turbulence in US Treasuries, equities and high yield bonds could have an impact on corporate issuance, especially of hybrid capital.

  • BMW breaks block silence, but no great splurge expected

    An investor in German car manufacturer BMW sold €198m of shares on Monday night, but the deal was unlikely to inspire other block trades, bankers said, as the equity markets remain highly volatile.

  • Schaeffler breaks high yield silence with €1.2bn PIK

    Schaeffler, the German car parts maker, closed books on Tuesday for a three tranche bond issue, €1.2bn-equivalent of senior secured payment-in-kind notes that are the first new issue in European high yield for two weeks.

  • KfW passes tricky test as FMSW comes in at short end

    KfW had to keep books open for longer than it is used to when selling a three year dollar benchmark on Tuesday, but it still impressed bankers by getting the trade away at a tight level. Viewed as a deal breaker for other issuers to come in dollars this week, KfW’s success meant that more trades could join FMS Wertmanagement, which mandated banks for a two year deal on Tuesday afternoon.

  • ESM breaks new ground with zero coupon benchmark

    The European Stability Mechanism took a novel approach to the sale of its shortest dated bond to date on Tuesday, printing a two year deal with what is understood to be the first ever 0% coupon on a benchmark from a supranational or agency. Agence Française de Développement is set to mimic the ESM’s tenor on Wednesday, after mandating banks for a long two year on Tuesday afternoon.

  • Investors mob long Quebec Swiss deal

    Swiss franc investors snapped up a long dated Quebec issue on Tuesday, following a shift in demand toward 10 year paper.

  • AQR and stress tests: this time, it's a real step forward

    European banks have been in limbo this month, waiting for their regulators' verdict to be handed down in the Comprehensive Assessment (the Asset Quality Review and stress tests). There are gaping holes in the assessment process but, even so, it is something quite new and potentially revolutionary.

  • Another London IPO falls as BCA cancels flotation

    British car retailer BCA Marketplace pulled its IPO on Tuesday, blaming continued volatility in global equity markets.

  • Russia's Otkritie and Acron revive talks on loans

    Despite the virtual shutdown of the Russian international loan market, borrowers from the country continue to explore the possibility of deals. Two companies, Otkritie Financial Corp Bank (formerly Nomos Bank) and Acron, have been in discussion recently, said loans bankers.

  • SGX sees derivs growth for another year running

    The Singapore Exchange has reported a 4% increase in derivatives revenues year-on-year in its first quarter results for the 2015 fiscal year. Derivatives volumes at the exchange were up 9% to 28.8 mn contracts.

  • Wider high yield spreads in US are a false friend, Europeans say

    European high yield bonds still offer value to investors, compared with the US market, despite the wider spreads available in the US, specialists have argued.

  • Internet services firm launches AIM IPO

    Internet services company Afilias launched an IPO on Tuesday, hoping to list on London's AIM in November.

  • No Santander single-As despite solid demand

    Santander Consumer Bank’s Finnish arm has decided against selling a small tranche of single-A rated Class C bonds in its third auto ABS transaction.

  • Styrolution pushes out deadline on €1.05bn loan

    German styrenics supplier Styrolution will extend the initial Tuesday deadline for commitments on its €1.05bn-equivalent term loan ‘B’.

  • Some banks lacking enough CET1 disclosure: CreditSights

    Investors are still in the dark as to how well capitalised some of Europe’s major banks are, according to analysis firm CreditSights.

  • Markets that thrive on bad news are damaging for society

    The biggest news stories of 2014: Ebola, the rise of Islamic State, Ukraine crisis, tumbling oil prices, terrible growth data in the Eurozone and the US, uprisings in Hong Kong and across the world, growing inequality, turmoil in the Middle East. And also the return of capital markets led by record highs in stock and bond markets. Spot the odd one out.

  • SAP loan gets 100% hit rate with M&A-hungry banks

    SAP, the German software firm, closed syndication of the €7bn bridge facility for its $8.3bn acquisition of US expenses software firm Concur at the end of last week with the participation of all the invited banks, according to people familiar with the deal.

  • FIG issuers on hold despite slick Citi's success

    Secondary market levels held up after last week's sell-off on Tuesday, bringing comfort to market participants. The robust secondary trading, along with a successful senior deal from Citi, bodes well for issuers looking to tap the market, though syndicate bankers have suggested that many issuers will wait until at least next week to sell debt.

  • TSKB tightens guidance for $350m five year, but analyst calls it 'priced to sell'

    Turkish Development Bank Türkiye Sınai Kalkınma Bankası has tightened price guidance for its $350m five year bond to 387.5bp-400bp over mid-swaps. The bank released initial price thoughts for its debut at 400bp over mid-swaps earlier on Tuesday morning, having waited for a calmer market window since the end of its roadshow last week. Despite the tightening, one analyst still saw the pricing as generous.

  • Romania offers generous 20bp new issue premium

    Romania has released initial price thoughts for a 10 year euro benchmark at 200bp over mid-swaps, representing a pick-up of 20bp over the country’s outstanding curve, according to an origination official away from the deal.

  • Stanbic leads as African banks line up loans

    The African loan market is awash with bank and financial company business, with two firms from different countries circling for financing, while one has already landed a deal.

  • Scope builds ABS team, sets up shop in covered

    Scope Ratings has hired two directors from rival ratings agencies to join its structured finance team, as well as expanding into covered bond ratings.

  • Tewoo gets SBLC backing for debut

    China’s Tewoo Group is gearing up for its first foray into the debt market, mandating three banks to arrange a series of investor meetings that started on October 22.

  • Peru’s Unacem hits road for acquisition bond

    Peruvian cement and concrete company Unión Andina de Cementos (Unacem) begins a roadshow on Tuesday ahead of a debut international bond issue to be used to finance the acquisition of Lafarge Ecuador.

  • SSI sets price guidance at top for $146m IPO

    Luxury goods retailer SSI Group has set final price guidance at the top of the range ahead of closing books for its Ps6.5bn ($146m) IPO on October 22.

  • IDBI pounces on falling Treasuries to price amid vol

    IDBI Bank priced a five year dollar bond on Monday. While choppy markets saw the issuer pay some new issue premium, the borrower managed to take advantage of a lower rate window to price just wide of its curve.

  • Kredi where it's due: Yapi was right to defy market tone

    Turkish bank Yapi Kredi printed a $500m five year bond last week on a day when its curve widened 25bp. Going ahead with the deal seemed self-defeating to many, but GlobalCapital believes Yapi Kredi behaved honourably, and investors should reward its honesty in future deals.

  • Total Derivatives: one year CNY rate expected to attract payers

    Firm Chinese growth data has backed paying in 10 year CNY swaps. Meanwhile, the recent decline in short rates has pushed the one year swap rate to levels that are now considered low enough to attract paying interest, writes Deirdre Yeung of Total Derivatives.

  • SBLC no match for volatility as Hebei Iron debuts

    Hebei Iron and Steel was forced to price its debut offshore bond more than 20bp wider than its closest comparables on October 20, despite the fact the bond was supported by a standby letter of credit from one of the joint global co-ordinators, Agricultural Bank of China. While SBLCs have reduced pricing in the past, it failed to help this time around as choppy markets proved to be too much.

  • Baker & McKenzie beefs up its capital markets with Pong

    Baker & McKenzie has appointed Chen Yih Pong as principle in a move aimed at reinforcing the law firm’s capital markets offering.

  • KHNP returns with dollar five year

    Korea Hydro & Nuclear Power (KHNP) is out with guidance for its second dollar bond of the year. It priced a three year floating rate note in May.

  • Samsung SDS throws open $1.1bn IPO to strong interest

    Samsung SDS opened books for its W1.2tr ($1.1bn) IPO on October 20 in what is likely to become the biggest listing in South Korea since 2010. The macro environment presents numerous challenges, with the deal launching at a time when the Korea Stock Exchange Kospi Index has slipped by 3.1% since the start of the month. But if early signs are anything to go by, Samsung SDS is likely to escape unscathed by volatile markets.

  • PE firms talking to banks for Indian LBO loan

    Private equity firms are sounding out banks for a loan to finance their purchase of a stake in Indian firm CMS Info Systems from Blackstone, which is currently the majority owner.

  • Suwanapruti to lead ANZ’s global rates research

    ANZ has named Danny Suwanapruti as its global head of rates research as the bank looks to build out its Asian rates business.

  • CP Indonesia feeds banks $350m in general

    Indonesian poultry feed producer Charoen Pokphand (CP) Indonesia’s $350m dual currency loan that comes with a $50m greenshoe, has entered general syndication.

  • Correction coming for non-bank mortgage originators

    The Federal Housing Finance Agency's plans to open up credit in the mortgage market were welcomed by banks and investors yesterday, but non-bank mortgage originators could still be in trouble.

  • New reps and warranties for STACR deals

    Clarifications on representations and warranties of mortgages purchased by Fannie Mae and Freddie Mac could apply to the agencies’ risk-sharing deals, a Freddie Mac spokesperson told GlobalCapital following comments by Federal Housing Finance Agency director Melvin Watt on Monday.

  • New York P2P investor plans Prosper loan securitization

    Blue Elephant Capital Management, an investment manager that acquires loans from marketplace lending platforms, expects to print its first securitization of loans made by peer-to-peer lender Prosper within the next couple of months. Eaglewood Capital, a similar firm to Blue Elephant, today closed its second securitization of Lending Club loans.

  • CDS notional marginally drops following six-week increase

    Overall credit default swap notional that was reported to swap data repositories last week decreased by 4% from the previous week, according to data from the International Swaps and Derivatives Association. This follows six weeks of a consistent uptick in CDS notional, with a combined increase of 160%.

  • Prudential first to back Swansea Bay tidal lagoon

    Prudential, the UK insurance company, has become the first investor to commit construction funding for a tidal power project off the Welsh coast.

  • Airbus €500m shows quality credits can fly

    The European corporate bond new issue market got back to business on Monday, with a successful €500m 15 year issue for Airbus.

  • Schaeffler hopes to enter bare high yield market for €1.2bn

    German ball bearing manufacturer Schaeffler intends to issue €1.2bn-equivalent of senior secured bonds, making it the first high yield issuer in Europe to announce a new deal for nearly a fortnight.

  • EC proposes extension to capital relief for non-EU CCPs

    The European Commission will propose an extension of capital relief for non-qualifying central counterparties beyond December 2014. If the extension is not granted, banks using non-European clearing houses could face sky-high capital charges.

  • Spirit Pub Co accepts Greene King's share and cash takeover bid

    Spirit Pub Co, which owns chains such as Taylor Walker, Fayre & Square and Wacky Warehouse, has announced it will recommend its shareholders to accept Greene King’s latest takeover bid.

  • KfW set for dollar three year in tight window

    KfW is set to bring a three year dollar benchmark on Tuesday, in what bankers say could be a tight window for issuance in the currency. At least two other borrowers are thought to be looking at dollar deals this week, but may wait for KfW to test the water first.

  • ESM in for two year as NRW goes long

    The European Stability Mechanism has opted to sell what will be its shortest dated bond to date on Tuesday, after mandating banks for a two year bond on Monday afternoon. Meanwhile, the State of North Rhine-Westphalia grabbed some funding at the long end of the curve.

  • FCC plots €1bn cap hike to pay down refinancing debt

    Spanish infrastructure and environmental services firm FCC is to ask shareholders for permission to raise sell shares to repay part of a €4.5bn refinancing agreed earlier in the year.

  • NRW.Bank to go bigger with second green bond

    NRW.Bank is expecting to double the size of its inaugural green bond with its second visit to the asset class, after kicking off a road show for a new bond.

  • Finland's YIT signs €300m revolver

    YIT, the Finnish construction company, has signed a new €300m revolving credit facility with six Nordic banks to refinance bilateral RCFs. The funds are earmarked for general corporate purposes.

  • Portability becoming almost standard on sponsor-driven high yield bonds

    High yield bonds with portability clauses that allow the issuers to bypass change of control covenants have increased their presence in the market, according to research published on October 17 by Moody’s.

  • Ex-ISDA head Pickel joins Droit board

    Robert Pickel, ex-CEO of the International Swaps and Derivatives Association, has been appointed to the special advisory board of Droit Financial Technologies, a trading solutions firm based in New York.

  • Euros in favour as sterling issuers bide time

    More euro-denominated transactions are ready to hit the European ABS pipeline this month, but drawing out sterling transactions is proving a tougher assignment for syndicate teams who are battling against well funded issuers and anticipation of European Central Bank purchases.

  • Mezzan Holding kicks off Kuwait IPO

    Kuwaiti conglomerate Mezzan Holding launched an IPO on Monday.

  • Funding scorecard: European agencies

    This week's scorecard features updates on the funding progress of selected European agencies.

  • Daisy Group borrows £400m including Ares PIK to go private

    Daisy Group, the UK business communications provider listed on Aim, has signed £400m of debt facilities, including a payment-in-kind loan supplied by Ares Management, to support a management buyout.

  • Ares and GE Capital fund reaches €1bn with Notemachine refi

    Ares and GE Capital's mid-market debt fund, the European Senior Secured Loan Programme (ESSLP), has increased to €1bn, after completing its 10th transaction, the £120m refinancing of UK cash machine provider Notemachine’s debt.

  • Saudi NCB kicks off Gulf's biggest book build

    Saudi National Commercial Bank opened up on Sunday for what could be the Gulf's biggest ever book build, as well as EMEA's biggest deal this year.

  • ABS primary shrugs off widening as SCB Finland mulls mezz

    Santander Consumer Bank’s Finnish arm could sell Class C auto ABS bonds for the first time on Tuesday, undeterred by a widening across European ABS last week as the market opened with a stronger tone on Monday morning.

  • Citi offers juicy premium to defy market jitters

    Citi broke a hiatus in market activity on Monday to open books for the first fixed rate senior unsecured euro new issue of the month. A generous new issue premium allowed the issuer to rack up a large order book despite recent market volatility.

  • Turkish food companies line up loans

    Turkish food companies are looking for loans, with cake and biscuit maker Ulker said to be set to speak with banks next Monday (October 27) and Yildiz dairy subsidiary Ak Gida already in the market.

  • Nepi mandates three banks for bonds

    New Europe Property Investments has mandated Deutsche Bank, Investec and Raiffeisen Bank International to arrange a series of fixed income investor meetings. The roadshow for a bond starts on Tuesday.

  • SG poaches Credit Suisse DCM banker

    Société Générale has hired Karim El Zein for its Middle East DCM team. El Zein will be based in Dubai.

  • Blue Bird finds passengers for smaller $200m IPO

    Indonesian taxi operator Blue Bird Group became a victim of weak global market conditions last week, forcing it to shrink its IPO size by 33% despite books being covered within hours of launch.

  • Cheese is up when the chips are down

    A combination of bad markets and bad weather got a Nordic banker thinking about travel plans last week.

  • Acadian Asset Management launches EM small cap equity UCITS fund

    Acadian Asset Management, an investment manager specialising in sophisticated global equity and fixed income strategies, has launched an Emerging Markets Small-Cap Equity UCITS dollar fund in conjunction with Russell Investments.

  • Secondary pricing update: including green bonds from BNG, KfW and EIB

    Read on to see how selected benchmarks are faring in secondary. Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark as of Thursday's close. The source for secondary trading levels is Interactive Data.

  • Sesa Sterlite $500m loan deadline extended

    Vedanta subsidiary Sesa Sterlite, which opened a $500m refinancing loan into general syndication on September 12, has pushed back the deadline for the fundraising.

  • North Asia DCM update: Hebei Iron, Citic Securities, China Travel Service and Hanjin Int

    Hebei opens books for offshore debut China’s second largest steel maker, Hebei Iron & Steel Group, is looking to tap the offshore debt market for the first time, opening books to a credit enhanced dollar bond on October 20.

  • IDBI makes it sub and senior in less than a week

    IDBI Bank opened guidance on a senior dollar bullet on Monday after pricing its debut Basel III compliant additional tier one additional tier one (AT1) security in the domestic market last week. The bank began sounding out investors about a Basel III dollar bond in July, but decided not to go ahead.

  • VeriSilicon heads to Nasdaq for $75m listing

    Chinese company VeriSilicon Holdings is aiming for an IPO worth at least $75m on the Nasdaq, and has filed a preliminary prospectus with the US’s Securities and Exchange Commission.

  • Total Derivatives: CNY curve steeper on PBoC easing news

    Further targeted easing by the People's Bank of China (PBoC) backed downward pressure on CNY rates on Monday. The seven day repo rate fixed below 3%, at its lowest point in a month, and the curve is steepening on short-end outperformance, writes Deirdre Yeung of Total Derivatives.

  • HCP Global returns for $360m dividend recap loan

    Cosmetics packaging company HCP Global, which pulled a US targeted loan of $380m in August, has launched a Taiwan targeted syndication for $360m for its dividend recapitalisation instead. The company, which has picked four banks to lead the new deal, is offering generous margins in light of the use of proceeds and the high leverage the company will be left.

  • KTL International shines for HK IPO

    There's no end in sight to the companies lining up to list on the Hong Kong Stock Exchange with jewellery exporter KTL International the latest name to file for an IPO.

  • Eco World builds momentum for $572m property Spac

    Eco World Development Group is looking to become the first property-focused special purpose acquisition company (Spac) to list in Malaysia, providing investors with a chance to buy into a new asset class that has been dominated solely by just oil and gas-related Spacs.

  • Bangkok Airways overcomes turbulence to land $446m IPO

    Bangkok Airways Public Company has raised Bt14.5bn ($446m) from its IPO by pricing the trade at the middle of the range, with weak market conditions at the time of bookbuilding leading to the selling shareholder offloading fewer shares than planned.

  • Change at the top: Credit Suisse picks new Apac CEO

    Credit Suisse has shuffled its senior management in Asia Pacific, naming a new CEO for the region, who takes over from Eric Varvel. The bank has also appointed new leadership for its investment bank globally.

  • Chile eyes euros as part of dual currency bond

    Chile is aiming to tap the euro market for the time as part of its return to the cross-border bond markets after a two year absence, a source close to the borrower said.

  • Chile's E-CL set to announce as compatriot hits road

    Chilean power company E-CL was set to announce a long awaited bond issue on Monday morning after capital markets showed signs of stability towards the end of last week. The outcome will be of particular interest to SQM, the Chilean chemical firm that announced its bond roadshow on Friday.

  • GSE plan could resurrect RMBS

    More agency RMBS could be coming to the market if an agreement between Fannie Mae, Freddie Mac and mortgage lenders to clarify liabilities and relax the government sponsored enterprises’ mortgage purchasing standards is reached as expected. The agreement comes as Freddie Mac prepares two new risk-sharing deals.

  • Sharp rebound for Goldman as IB pipeline swells

    Having remained doggedly committed to its trading businesses throughout an extended period of low volatility, Goldman reaped the rewards this quarter, with revenues from fixed income, currencies and commodities jumping 74% to $2.17bn.

  • UK names banks for next syndication

    The UK Debt Management Office has named the banks that will be on its next syndicated bond issue, a tap of its 3.5% 2068 Gilt.

  • Single rulebook prioritised to avoid cracks in EU

    Steven Maijoor, chairman of the European Securities Markets Association, has emphasised the importance of a single rulebook in the EU, calling for single rulebook regulation to be applied consistently to ensure differences in supervision do not threaten financial stability in the region.

  • NewOcean Energy signs $105m with six

    Hong Kong headquartered NewOcean Energy Holdings has signed a $105m three year loan with six lenders. The loan was raised via subsidiary Sound Agents and comes with a covenant relating to NewOcean’s shareholding.

  • Virgin Money IPO down, for now, but not yet out

    Virgin Money said it would miss its October target for completing its IPO, as bookbuilding was set to begin today (Friday). Bankers close to the deal insisted that the company was waiting for more stable markets to return, rather than pulling the deal entirely.

  • Jimmy Choo finds now rare IPO success

    UK luxury accessories firm Jimmy Choo completed its IPO on Friday, pricing the deal at the bottom of the range. Strong momentum helped the deal achieve the now rare feat of successfully being completed at all.

  • RAC sets price guidance for £1.25bn loan at bank meeting

    UK car breakdown recovery firm RAC set out price guidance on its £1.25bn loan at a London bank meeting on Thursday.

  • Credit Suisse suffers DCM departure

    Karim El Zein, a vice president covering the EEMEA region on Credit Suisse’s DCM desk, has left the bank after over seven years at the firm.

  • RMB round-up: October 17, 2014

    In this week’s RMB round-up, Hong Kong and Thailand discuss ways of improving financial linkages, Fitch Ratings said it expected the fourth quarter to be a busy time for offshore RMB bond issuance, and Value Partners launched its first RQFII product to capture the rising investment opportunities from the onshore A-share market.

  • JSW Steel seeks $250m with one

    Indian company JSW Steel is in the market for a $250m loan that is being underwritten by one lender.

  • BBI Life Sciences scopes out HK IPO

    China's BBI Life Sciences has sought a listing on the Hong Kong Stock Exchange.

  • SiS seeks Hong Kong spin-off of mobile arm

    SiS International Holdings is spinning off its mobile distribution business on the Hong Kong Stock Exchange in a bid to differentiate its operations from that of its IT products arm.

  • Total Derivatives: CNY offered on price data

    CNY swaps were better offered on Thursday as a result of Wednesday's weak PPI and CPI reports, with the rates market rallying despite the release of some positive domestic economic data on Thursday, writes Deirdre Yeung of Total Derivatives.

  • CP Indonesia mandates seven for $300m-$400m loan

    The mandated lead arranger and bookrunner group for Indonesian poultry feed producer Charoen Pokphand (CP) Indonesia’s $300m-$400m loan has been firmed up.

  • Yuexiu builds rights issue with 5.2x subscription

    Yuexiu Property Company’s 33-for-100 rights issue has received a stellar response from shareholders with the deal 5.2 times covered.

  • One down, three more to go: ICBC eyes November AT1

    Fresh from Bank of China’s (BoC) landmark $6.5bn additional tier one (AT1) capital transaction on October 15, the market is now shifting its attention to another of the Chinese big four banks, Industrial and Commercial Bank of China (ICBC).

  • BoC's AT1: big but not that clever

    You’ve got to hand it to Bank of China. This week it priced the biggest Basel III bank capital deal ever, in what bankers are calling the worst market conditions since 2008. But while the deal was certainly one step forward for Bank of China, it looked like two steps back for the international capital markets.

  • Tiger takes off for $184m rights issue amid poor results

    Tiger Airways Holdings is set to raise S$234m ($184m) from an 85-for-100 rights issue, in which its largest shareholder Singapore Airlines (SIA) will increase its stake with the aim of making Tiger its subsidiary.

  • Innocean narrows down to four as Cheil sets eyes on $1.4bn IPO

    Hyundai Innocean, the advertising arm of South Korea’s Hyundai Group, is set to mandate four banks for its IPO, which is expected to hit the market next year.

  • Citi hails China-London automatic RMB sweeping

    Citi has completed its first renminbi cross-border automated sweeping structure from China to London. While a global RMB cash pooling solution enables corporates to integrate RMB effectively into their treasury and liquidity structures, the bank believes it is also truly paving the way for the RMB’s development as an international currency.

  • Bond investors face binary Brazil decision

    Brazilian bond prices indicate that investors are unsure of the outcome of the second round of the country’s elections on October 26, though observers warn that even if the market’s favourite Aécio Neves wins, the road ahead for Brazil is not smooth.

  • ‘Cavalier’ JP Morgan grabs $2bn

    JP Morgan showed a keen risk appetite as it jumped into the high-grade market in the thick of a global market sell-off.

  • Volatility a warning for regulators: don't crush banks

    Investors and bankers have long warned of the dangers to market liquidity of loading investment banks’ trading desks with capital safety cushions. This week they acquired some evidence to back up their complaints.

  • Vicious swing from risk as markets price poor growth

    Volatility sprang back into global capital markets this week, tearing apart the calm, even complacently placid mood that had prevailed for most of the past two years. As with many true market shocks, the change was unexpected and to a large extent unexplained.

  • E-CL monitors markets as LatAm waits for storm to pass

    Chilean power company E-CL opted not to issue a planned bond on Thursday as LatAm DCM and syndicate bankers said they would be in no rush to issue during periods of volatility.

  • Business thriving but US banks crushed by conduct

    Conduct charges defined third quarter results at Bank of America, while Citi and JP Morgan also saw their numbers marred by litigation provisions or conduct failings. Only Goldman, of the first crop of US investment banks reporting this week, largely escaped a blow from past misdeeds.

  • UBS Neo launches MAC swaps on live order book

    Live order book trading of market agreed coupon swaps is now trading on UBS’ electronic trading platform Neo, making it the first platform to offer an aggregated order book for MAC swaps.

  • Don’t blame Samaras for unknown unknowns

    Anyone blaming Greek prime minister Antonis Samaras’s ambitious plan to leave his country’s bail-out programme early for the spectacular spike in Greek yields this week is taking a pretty limited view of how capital markets actually work.

  • Guinness is good for you, say UK funds after freak Gilt binge

    The Guinness Partnership, one of the oldest and largest of the UK housing associations, issued a £150m bond on Thursday, in the aftermath of one of the most turbulent days in the bond market for years.

  • Eaglewood brings P2P deal as institutions reach for sector’s yields

    Eaglewood Capital, a boutique investment firm focused on securitizing peer-to-peer loans, is about to close its second securitization of consumer loans originated by Lending Club.

  • KfW EUR3bn 0.05% Nov 17

  • UK Rmb3bn 2.7% Oct 17

  • NRW USD1bn 1.625% Jan 20

  • CircleBack beefs up staff

    Online consumer lending platform CircleBack Lending, which has teamed up with Jefferies to securitize up to $500m of the loans it originates, is “aggressively” expanding its staff to deal with increased business.

  • Mid-tier German banks likely to fail ECB assessment: RBS

    Most European banks are likely to pass the European Central Bank’s Comprehensive Assessment, the results of which will be released on October 26, but mid-tier Portuguese, Italian, Cypriot and German banks are most at risk of falling short of a passing grade, according to analysts at Royal Bank of Scotland.

  • Finansbank offers juicy pickup with rare dollar MTN

    Finansbank sold its fourth dollar denominated MTN on Monday as Turkish banks attract short-end investors with higher yields than their peers in other emerging markets such as India and China.

  • KBN USD1bn 1.5% Oct 19

  • After stress tests, many banks still vulnerable, says Fitch

    European banks could need to spend as much as €250bn to raise their reserve coverage levels against problem loans to healthy levels, according to Fitch.

  • Navient rebuffs servicing concerns on student loan ABS

    Navient Corp’s latest private student loan ABS issuance, which settles next week, comes amid regulatory criticism over poor servicing in the industry. But the Sallie Mae spin-off disclosed improved private loan performance on Wednesday and rebuffed assertions that borrowers were unable to refinance their loans.

  • As Ebola fear chills Africa deals, experts warn against overreaction

    Some European and US investors are beginning to reconsider their involvement in Africa as a result of the spread of the Ebola virus, but local market specialists warned this week against a panic reaction to the epidemic, writes Olivier Holmey.

  • Bank regulation fails first big test as bond liquidity evaporates in flash crash

    Fund managers and capital markets bankers blamed the lack of liquidity in bond markets, caused by bank regulation, for exacerbating price swings in credit markets and US Treasuries this week. This kind of volatility might just be something investors have to get used to, they warned, writes Tessa Wilkie.

  • Greece flies into trouble but bankers defend PM’s early bail-out departure

    Greek yields flew higher than Icarus at the end of the week amid torrid market conditions, pushing up towards levels last seen in the dark days of the European sovereign debt crisis. But while many commentators were quick to blame the spectacular spike on Greek prime minister Antonis Samaras’ ambitious plan to leave its Troika sponsored bail-out package by the end of the year, market participants rallied round the sovereign — and pointed to the more technical factors that were at the heart of the turmoil. Craig McGlashan reports.

  • Aussie sovereign goes long, frees up space for SSAs

    Australian dollars will remain the non-core currency of choice for SSAs and high-grade issuers following a curve-extending deal from the Australian sovereign on Wednesday, said bankers.

  • Spain suffers first 10 year yield hike in 16 months

    Spain became the first country from the eurozone periphery to take a hit in the primary markets from the thundering volatility that shook bond prices this week, as its 10 year yields rose at auction for the first time in over a year on Thursday.

  • JP Morgan to sell on crisis-era UK RMBS

    JP Morgan is at the head of a consortium that has acquired a £2.7bn portfolio of legacy performing UK residential mortgages from the UK government’s bad bank, and has structured the assets into two RMBS transactions to syndicate to investors.

  • Sentiment dive fails to sink ABN Amro’s Dolphin

    ABN Amro priced its €500m five year Dolphin RMBS at the tight end of guidance on Wednesday morning, demonstrating the relative resilience of core ABS to a broader market slump and placing the trade directly between recent prints from Dutch rivals Aegon and Obvion.

  • Ford takes up auto primary challenge

    With not enough bonds to go around and the European Central Bank throwing money at their asset class, Europe’s ABS issuers have had precious little to worry about in the primary market of late. But the market widened across the board this week amid a sharp global sell-off, and, as a result, Ford Credit Europe Bank will face a tougher market for its Globaldrive German auto ABS transaction next week.

  • Guinness is good for you, UK funds decide after freak Gilt binge

    The Guinness Partnership, one of the oldest and largest of the UK housing associations, issued a £150m bond on Thursday, in the aftermath of one of the most turbulent days in the bond market for years.

  • Yorkshire pushes RMBS through volatility

    Yorkshire Building Society is preparing to price its first RMBS transaction of the year on Friday morning at the end of a torrid week of secondary trading that has sent comps for the deal bouncing around in a 10bp range.

  • People Moves in Brief

    ECB staffing up for ABS buying - JPM consolidates syndicate - Nomura loses global finance chief

  • EBA calls for big rethink on ABS regs with ‘high quality’ vision

    The European Banking Authority has called for a systematic review of the “entire regulatory framework applicable to securitizations” to better align its treatment with other asset classes, alongside proposing the first concrete definition of a ‘qualifying’ securitization.

  • CLO managers forced to ‘bite bullet’ at wider levels

    Continued spread pressure in the US CLO market has forced managers completing deals in the past two weeks or so to swallow higher spreads to get their deals over the line, with many hoping they can take advantage of softness in the underlying leveraged loan market to make up for the wider print.

  • Weary Punch bondholders hit by ratings

    Punch Taverns’ bondholders had only just finished celebrating the culmination of the pub group’s seemingly endless securitization restructuring saga, when late last week Fitch and Standard & Poor’s delivered another blow by assigning much lower ratings than Moody’s to several tranches.

  • MTN Leak: quesadilla 24/7

    In an exciting development — perhaps unprecedented in MTNs, or at least it hasn’t happened for a very long time — Leak is about to discover the answer to one of the market’s best kept secrets.

  • M&A loans gobbled up but aren’t enough to sate banks’ appetites

    The syndication of German pharmaceutical company Merck’s $15.6bn of loans for its acquisition of US life sciences firm Sigma-Aldrich was the latest in a series of transatlantic M&A related loans for investment grade German borrowers to close oversubscribed. Banks have plenty of cash and are keen to use it, but a trend for large tickets and slim banking groups means there may not be enough to go around.

  • ESM next up to face testing markets after KfW’s perfect timing

    The European Stability Mechanism is the only sovereign, supranational or agency lined up to syndicate in euros next week — and it will do so in very different conditions to the last time it printed. Volatility that some bankers said they had not seen since 2009 or 2010 hit markets in the second half of this week — meaning KfW could not have timed things better by coming with a deal on Tuesday.

  • Lack of underwriting contributes to HY deal shortage

    Banks' reluctance to underwrite high yield transactions in September is contributing to the absence of new issuance this month, leveraged bankers said this week.

  • Extreme volatility hits dollar deals

    A pair of dollar deals in the sovereign, supranational and agency sector failed to cross the line this week, coming on a day when turbulent US Treasury markets made book building tough. Issuers lining up deals for next week may have to be prepared to pay more of a new issue premium because of this week’s tricky conditions.

  • RAC holds bank meeting as levloan market keeps going, in contrast to high yield bonds

    UK car breakdown recovery firm RAC marketed its £1.25bn recapitalisation and refinancing loan to lenders on Thursday, signalling that the leveraged loan market is battered but still functioning.

  • UK’s RMB debut sets scene for further sovereign RMB issuance

    The high level of demand for the UK’s debut offshore renminbi bond this week, the first from a non-Chinese sovereign, will be encouraging for other countries looking at printing in the internationalising currency. Two more are thought to be looking at selling renminbi bonds.

  • FIG supply likely to be light after sell-off

    Market volatility and a sharp downturn in sentiment kept FIG supply light this week, with just Deutsche Bank choosing to access the market in euros, tapping a seven year note. Expectations are for supply to stay light given the sudden sell off across many asset classes that followed weak US data on Wednesday afternoon.

  • Are EU, US high yield markets decoupling?

    Bankers in Europe are divided on whether the high yield market is moving in a different direction from that of the US, sucked down by gloomier investor sentiment and with issuers staying away in hope of improvements in macroeconomic data later in the year or even waiting for 2015.

  • Sukuk eyes record as oil fall helps Turkey

    The dollar sukuk market is on course for a photo finish with 2012’s record volume, with flydubai pushing forward plans for a debut deal and market participants suggesting volatile macroeconomic conditions have added impetus for another prospective borrower, Turkey.

  • CCDQ has fairer fortune with second legislative covered

    Primary issuance in covered bonds slowed this week with just one deal emerging on Wednesday from Canadian issuer La Caisse Centrale Desjardins du Quebec (CCDQ).

  • Buyers emerge after days of price falls but little trading in AT1

    After a week of seeing prices fall on geopolitical and macroeconomic concerns, but with little actual trading of bonds taking place, buyers began to emerge on Thursday for additional tier one securities on the secondary market. Prices are now at a level that both the buy and sell side said could attract new investors into the product — if they don’t recover too much once investors shake off their fears and resume the reach for yield.

  • Schaeffler prices within range but US investors push wide on margin

    German bearings firm Schaeffler has priced its €1.77bn-equivalent term loan ‘B’ at the wide end of its guidance range in response to weak demand from the US market.

  • Dollar borrowers freeze as turmoil rages

    The US high-grade bond market was all but closed to new issuance this week as plummeting Treasury yields sent borrowers scampering to the sidelines. The 10 year note had its biggest intraday swing in six years on Wednesday as it fell as low as 1.86%, the lowest since May 2013, before rebounding to around 2.10%.

  • African bonds take beating as USTs punish high beta

    The sharp selloff in emerging market bonds caused by the severe volatility in US Treasuries on Wednesday hit Africa bond markets the hardest. A perfect storm engulfed the continent’s bond trading — EM investors alarmed by the Treasuries move, falling oil prices and fears over Ebola smashed any remaining resolve among investors in African bonds.

  • Can JPM still overtake Citi in CEEMEA bonds?

    Citi is posting the widest lead in volumes of CEEMEA bonds arranged since 2011, meaning the US bank is odds-on favourite to finish 2014 at the top of the table. But though the gap will be difficult for JP Morgan to close by December, figures from previous years show that it is not impossible.

  • Clean companies a commercial necessity, say Africa investors

    Good environment, social and corporate governance practices are moving from a bonus for investors to a commercial necessity, which is likely to add extra challenges for investors and issuers in Africa.

  • Clearing house recovery plans systemically essential

    Clearing houses must implement recovery plans and avoid resolution, or they risk destabilising financial systems, according to guidance by the Bank for International Settlements and the International Organization of Securities Commissions.

  • Leveraged loans, news in brief - 17 October 2014

    Amdipharm Mercury - Tikehau

  • Gazprom could print bond before 2015

    Gazprom is considering pricing a dollar or euro benchmark bond before the end of this year. Analysts and investors said it would be possible but only at the right price and with strong anchor orders.

  • Ticino the only Swissie issuer, Kores on way

    Swiss franc supply was limited to one deal from Canton of Ticino this week as global concerns weighed on the market but a roadshow by Korea Resources Corporation (KoRes) raised the prospect of higher beta supply once spreads stabilise.

  • Corialis makes fresh concessions to get done while squeezing bank fees

    Corialis, the Belgian aluminium windows maker, is expected to close the book for its €483m leveraged loan on Monday evening, after lenders won significant concessions from Advent International, the private equity firm that is buying it.

  • Green bond lending market faces up to limits

    A securities lending market in green bonds will remain all but non-existent until volumes grow to a much larger size — but even then, borrowing bonds could remain off the table for several reasons.

  • Capital markets union “my dream”, says Barnier

    Michel Barnier, outgoing vice-president of the European Commission, has described a real European capital market as “my dream, which can be inherited by my successor”, writes Owen Sanderson.

  • Investment grade loans, news in brief — October 17, 2014

    Gunvor — Premium Farrell

  • Yapi Kredi pulls off bond in nightmare market, TSKB pauses

    Turkey's Yapi ve Kredi Bankasi astonished the market on Wednesday by seeming to accomplish what looked like an impossible feat — pricing a $500m five year bond in a day where its curve was sent 25bp wider in spread terms by US Treasury volatility.

  • Pension netting regs push bank clearing costs higher

    Dealers are facing increasing costs when providing clearing services to pension funds amid the regulatory push to move trades to clearing houses. The lack of netting provisions for pension funds means capital charges for dealers are high, with the result that leading banks are questioning the viability of the business without a rise in clearing prices.

  • Another IPO falls and more at risk as market turmoil hits

    UK challenger bank Aldermore became the latest victim of plunging stock markets this week, as bankers became increasingly concerned that conditions could leave ECM barren in the coming months and lead to the cancellation of yet more deals. The spotlight has now turned to another challenger bank, Virgin Money.

  • United Internet closes loan, plans Schuldschein

    United Internet, the German internet services provider, closed the €1.35bn loan for its acquisition of Versatel on Wednesday, leaving the path open to a Schuldschein transaction for banks left outside the syndication.

  • European liquidity rules draw in unrated covereds

    The final text of European liquidity rules allows unrated covered bonds into the asset buffers banks must hold, in a move that demonstrates the European Commission's willingness to rely less on the credit rating agencies. Unrated covered bonds sit alongside various categories of securitization in the European version of the rules, which allow far more assets to be considered liquid than originally envisaged by the Basel Committee.

  • CS collapses covered bond trading into credit

    Two Frankfurt-based covered bond traders have left Credit Suisse, while two London-based traders will no longer focus on covered bonds, as the Swiss bank folds its separate covered bond market-making operation into investment grade credit trading.

  • BoC pricing divisive as Europeans steer clear

    Bank of China started soft sounding investors for the deal as early as July, approaching only selected sovereign wealth funds, large Asian investors and private banks. Yield talk then was 6%-7%, although that was narrowed to 6.5%-7% when the roadshow was announced.

  • Jimmy Choo stays conservative to ride out choppy markets

    The IPO of luxury accessories firm Jimmy Choo is likely to be priced at the bottom of its price range, bankers said as it closed on Thursday, but the deal is still likely to be hailed as a now rare success in weakening IPO markets.

  • Goldman’s sukuk tactics prove market is open for all

    A grim secondary performance by Goldman Sachs’s debut sukuk has turned the deal into a ready weapon for anyone holding that the Islamic market is not ready for such non-halal borrowers. But despite the performance, Goldman's sukuk will be remembered as the issue that shook the market purists' defences.

  • FGA Capital’s auto success fuels hopes for more mezz

    FGA Capital demonstrated strong appetite for Italian mezzanine debt this week, selling €22.5m of single-A rated bonds well inside guidance and fuelling hopes that more issuers can gain capital relief from selling subordinated notes.

  • Covered market on edge as ECB purchases await

    The secondary covered bond market this week found itself caught between a tumultuous peripheral sovereign market and fevered anticipation of the European Central Bank finally wading in to buy bonds. The strong bid, which was seen for periphery names over the last week, had evaporated in the second half of the week as profit taking settled in.

  • Equity capital markets, news in brief — October 17, 2014

  • Premier Farnell follows US private placement with £250m refi

    UK electronics components distributor Premier Farnell has completed a £250m amendment and extension of its loan facility, after refinancing its US private placement in August.

  • Spain suffers first 10 year yield hike in 16 months

    Spain became the first country from the eurozone periphery to take a hit in the primary markets from the thundering volatility that shook bond prices this week, as its 10 year yields rose at auction for the first time in over a year on Thursday.

  • EIB eyes non-core currencies to round off 2014 funding

    The European Investment Bank, which has raised over €60bn of its funding target so far this year, expects to pick up funding in non-core currencies ahead of year end.

  • Banks lap up big tickets as Merck’s $15.6bn syndicated loan closes

    The syndication of German pharmaceutical company Merck’s $15.6bn of loans for its acquisition of US life sciences firm Sigma-Aldrich has closed oversubscribed, with banks eager to accept a large portion of the bridge facilities.

  • Figsco lives — Goldman covered trade inches forward

    Goldman Sachs has not given up on its Fixed Income Global Structured Covered Obligation (Figsco). The market has moved in Goldman’s favour since the deal was first announced, despite the bad publicity around the trade.

  • Fitch wary on amended Polish covered bond law

    Fitch has issued a guarded opinion on recent changes to the Polish covered bond law that had been expected to improve issuance prospects. The amended law, which introduces pass-through structures and mandatory liquidity facilities, should have theoretically led to higher ratings. But the agency said the impact of the new regulation may in practice be more modest by not pushing ratings down.

  • ECB must buy covered bonds aggressively, or not at all

    The European Central Bank will face a dilemma when it embarks on its third covered bond purchase programme, which will start soon. Either the central bank buys covered bonds aggressively, something that it has vowed not to do, or it will fail to meet its own target for expanding its balance sheet.

  • SG puts heat on HK with dual-class shares nod

    The Singapore parliament has made sweeping changes to the Companies Act, abolishing the one share, one vote rules for public companies and paving the way for firms to list with dual-class shares. The move is expected to help revive the city-state’s ECM market, while also putting pressure on the Hong Kong Stock Exchange to speed up its own reforms, writes Rashmi Kumar.

  • Umbrella maker Jicheng opens for HK IPO

    At a time when pro-democracy protestors in Hong Kong are making headlines for starting the "umbrella movement", Chinese company Jicheng Umbrella Holdings has filed for a listing on the Hong Kong Stock Exchange.

  • Bank of China prefs pull in whopping $21.8bn orders

    Bank of China’s inaugural additional tier one (AT1) smashed records on Wednesday as the $6.5bn deal became the largest bank capital bond in the global market. But a lack of transparency left $4bn of allocations unaccounted for and drew criticism from bankers on the deal, write Virginia Furness and Rev Hui.

  • Indo names to keep loans busy with infra, expansion needs

    A cluster of Indonesian loans hitting the market recently has broken the lull that prevailed in the third quarter. Bankers now expect deal flow from southeast Asia’s largest economy to be robust until the end of the year, with state owned and private sector companies getting in on the act, writes Shruti Chaturvedi.

  • Regulation brings Asian insurance bond issuers out of the woodwork

    Asian insurers are making their presence felt in the international debt market after Korean Reinsurance (Korean Re) became the fourth name to issue a bond in six weeks. While market participants are quick to point out that the deals are unrelated, they predict more is coming from the sector as Asia makes the step up to Solvency II, write Virginia Furness and Rev Hui.

  • African bonds take beating as USTs punish high beta credit

    The sharp sell off in emerging market bonds, caused by the severe volatility in US Treasuries on Wednesday, has hit Africa bond markets the hardest. A “perfect storm” has engulfed the continent’s bonds — EM investors alarmed by the Treasuries move, falling oil prices and continued fears around the spread of Ebola combined to smash any remaining resolve left in investors trading in African bonds.

  • EBA’s allowance attack lacks legal punch

    The European Banking Authority has published a report on role-based allowances which looks to close a loophole in the European Union’s bonus cap. But the document has no formal legal standing, and its instruction to national supervisors to “to ensure institutions review their remuneration policies so as to comply with the criteria highlighted in the EBA report” by the end of the year goes beyond the EBA’s power.

  • Schaeffler prices within range but US investors push margins wide

    German ball bearing producer Schaeffler has priced its €1.77bn-equivalent term loan ‘B’ at the wide end of its guidance range, in response to weak demand from the US market.

  • Worries persist as Novo Banco goes radio silent

    A continued lack of clarity regarding the situation at Portugal’s Novo Banco, the bridge bank created following the failure of Banco Espírito Santo, is causing worries about when — and if — the Portuguese government will be able to return the bank to the private sector and how strong the lender actually is.

  • Periphery AT1 bonds take a beating as sell-off intensifies

    After opening flat to slightly better on Thursday morning, the additional tier one market fell by as much as three points as growing concerns over the fate of the global economy took its toll.

  • BofA scrapes a profit despite mammoth litigation costs

    Bank of America has managed to beat analysts’ expectations and post a third quarter profit of $168m, which compared to a figure of $2.5bn from the same time last year. Once again, the beleaguered bank has had to put huge conduct charges through the quarter's P&L.

  • Yapi Kredi pulls off bond print in nightmare market, TSKB takes pause

    Turkish Yapi ve Kredi Bankasi astonished the market on Wednesday by seeming to accomplish what looked like an impossible feat — pricing a $500m five year bond in a day where its curve was sent 25bp wider in spread terms by US Treasury volatility.

  • Jimmy Choo heads for bottom of range as market plunge continues

    The IPO of luxury accessories firm Jimmy Choo is likely to be priced at the bottom of its price range, bankers said on Wednesday, but the deal may still be hailed as a now rare success in weakening IPO markets.

  • China Electronics $1bn opens into general

    State owned IT company China Electronics Corp’s $1bn five year term loan for a thin-film-transistor liquid crystal display (TFT LCD) project in Nanjing was launched into general syndication on October 9.

  • Reit refurbishment on the cards in Singapore

    The Monetary Authority of Singapore (MAS) has released a consultation paper on real estate investment trusts (Reits), with proposals that it says will improve governance while offering more flexibility.

  • Volatility puts a dampener on ENN Energy’s return

    Chinese clean energy firm ENN Energy Holdings managed to tap the offshore market for $400m on October 15, even though volatile markets meant joint global co-ordinators HSBC and UBS were only able to gather a modest order book.

  • Agile returns with smaller $213m rights issue

    Agile Property Holdings has revived plans for a rights issue just days after scrapping the fundraising. But it has returned with a deal size that is 40% smaller and its majority shareholder will now underwrite the trade.

  • Yunnan Energy’s debut dim sum scrapes past the finish

    Yunnan Energy Investment barely made it past the finishing line with its debut offshore renminbi bond on October 15, with weak market sentiment threatening to derail the deal.

  • Tata Steel $5.6bn multi trancher in general

    A portion of Tata Steel’s $5.6bn borrowing, which has been in senior syndication since July, finally launched into general on October 13, with five banks joining the original 11 leads. The money will be used to refinance the outstanding portion of the debt Tata took to fund its acquisition of Europe’s Corus Group.

  • Astra clubs with eight for $300m three year revolver

    Indonesian conglomerate Astra International is close to winding up a $300m club loan with eight lenders.

  • BAML bumps up de Silva to new SE Asia ECM role

    Bank of America Merrill Lynch has hired from within for the newly created role of head of southeast Asia equity capital markets in Singapore. The promotion adds to the bank’s Asian ECM senior management team.

  • Citi grows Asian national desks as multinational numbers swell

    Citi has expanded its Asia coverage desks to keep up with the growing number of multinational corporations from the region.

  • Xiaomi allocates $1bn dual trancher among 29 banks

    Tentative allocations are out for smartphone maker Xiaomi’s $1bn dual tranche loan. The deal has proved popular as bankers are eager to lend to the company that has ambitious plans for global expansion.

  • China Taiping sets sights on chunky $828m deal

    Hong Kong-listed China Taiping Insurance Holdings is seeking to raise HK$6.43bn ($828m) from a 21 for 100 rights issue to repay a $570m loan it took last December.

  • Pertamina in talks with a dozen banks for $1.8bn

    Indonesian power company Pertamina has zeroed in on 12 lenders for its latest financing. The size of the deal has almost doubled to $1.8bn from the $1bn it was seeking in its request for proposals in September.

  • Anta Sports family nets $147m via sell-down

    The family behind Anta Sports Products has raised HK$1.14bn ($147m) through a sale of some of its shares in the Hong Kong-listed company, tapping the market five years after last trimming its stake.

  • ECB to appoint multiple PMs, grow headcount 10-20 for ABS purchases

    The European Central Bank intends to appoint more than one external portfolio manager to scan the market for ABS transactions to buy, while its asset purchase programme will add between 10 and 20 to its headcount overall, GlobalCapital understands.

  • Speaking the language of money

    Sometimes it seems like TaiTai is speaking another language. I don’t understand half of what she says: facials, pedicures and skin peeling.

  • ICBC’s leasing arm seeks $350m three year onshore

    ICBC Financial Leasing, a subsidiary of Industrial and Commercial Bank of China, is raising a $350m loan onshore, with five mandated lead arrangers and bookrunners. The company is having to pay a premium of over 40bp for accessing dollars onshore.

  • Link Net aims big as it opens $668m follow-on

    Four shareholders, including private equity firm CVC Capital Partners and cable operator First Media, are in the market to sell Rph8.15tr ($668m) worth of shares in Link Net, in what could be Indonesia’s largest equity transaction of the year.

  • Hua Hong nets $332m from Hong Kong listing

    Hua Hong Semiconductor has raised HK$2.57bn ($332m) from its Hong Kong IPO, in a deal that saw the shares price close to the bottom of the range.

  • UK home improvement firm completes AIM IPO

    Entu, which sells products to make houses more efficient, completed an IPO on London's AIM on Thursday.

  • EBA calls for big rethink on ABS regs with ‘high quality’ vision

    The European Banking Authority has called for a systematic review of the “entire regulatory framework applicable to securitizations” to better align its treatment with other asset classes, alongside proposing the first concrete definition of a ‘qualifying’ securitization.

  • Asiamoney Fixed Income Poll 2014: detailed results download

    Asiamoney has published the detailed results of its latest Fixed Income poll. Please use the following links to access the related coverage.

  • Chile’s E-CL ponders bond amid volatility

    Chilean power company E-CL will decide on Thursday morning whether to announce its planned dollar bond issuance, after a remarkable bout of volatility on Wednesday disturbed fixed income markets.

  • Exeter subprime faces used car plummet

    Non-bank auto finance company Exeter Finance Corp issued a $500m subprime auto ABS deal on Wednesday amid turmoil in US markets and steady criticism over subprime auto financing.

  • Five Oaks looks to launch own shelf

    Five Oaks Investment Corp. plans to acquire more jumbo mortgages and aspires to launch its own RMBS shelf by the end of next year, following the completion of the company’s first securitization last week.

  • American Capital continues transatlantic strategy with new CLO

    American Capital, which earlier this year brought one of the first US collateralised loan obligations to comply with European risk retention rules, is aiming to replicate the success of that deal with a new CLO it announced this week.

  • Traders switch from short VIX to long vol positions

    Institutional investors have been buying VIX call options with October expiries to express a bullish and long volatility view, following a slew of VIX calls that were sold when the market was down Tuesday.

  • Taubman’s plan for Blackstone Advisory

    Former Morgan Stanley star’s plans for Steven Schwarzman’s old advisory business should strike fear into rivals large and small, writes David Rothnie

  • United Internet closes €1.35bn loan and paves way for Schuldschein to follow

    United Internet, the German internet services provider, closed the €1.35bn loan for its acquisition of Versatel on Wednesday and left the path open for a Schuldschein transaction for banks that did not make it into the syndication.

  • Snam nabs €500m before storm breaks in US

    On an extraordinary day in the capital markets, a very ordinary corporate bond was issued on Wednesday — a €500m 8.5 year issue for Snam, the Italian gas transport group, that was nicely oversubscribed and closed trading at reoffer.

  • Markit: ‘Tis the season for our earnings

    The global macro picture remains a concern, but credit investors will turn their attentions to micro factors over the next few weeks as earnings season gains momentum.

  • SSAs eye A$ after longest sovereign bond

    Supranationals and agencies are eyeing deals in Australian dollars and could come before the week is out, following a curve extending bond from the Australian sovereign, although turbulent capital markets could make some pause for thought.

  • Darker tone in dollars as duo struggle

    A cacophony of troublesome macro conditions are rocking the markets and could make issuance exceptionally tricky for issuers looking to print dollars in the coming weeks. A pair of borrowers felt the pain on Wednesday, with their leads setting pricing in line with initial price thoughts and at least one of the deals undersubscribed — a far cry from a series of blow-out dollar trades since the market reopened after the summer.

  • Amdipharm Mercury sets price guidance on £984m loan

    UK pharmaceuticals group Amdipharm Mercury has set out price guidance on its £984m refinancing and recapitalisation loan, which will raise its net leverage ratio from 3.4 to 5.5 times.

  • UK debut renminbi bond almost twice subscribed

    The UK’s debut offshore renminbi bond — the first from a non-Chinese sovereign — was almost twice subscribed despite being larger than expected. The deal marks the largest new issue from an international sovereign, supranational or agency in offshore renminbi.

  • Direct onshore RMB-SGD trading expected this month

    Direct onshore trading of the renminbi (RMB) and the Singapore dollar (SGD) is expected to kick off very soon, and could come as early as this month, two Singapore-based sources have told GlobalRMB.

  • Funds snap up credit vol on iTraxx Main

    Hedge funds and real money players have continued to buy credit volatility this week by buying payer structures in iTraxx Crossover and Main, while also buying receivers, mostly on Main.

  • European investors lured by Schaeffler's familiarity to €1.8bn loan

    German ball bearing producer Schaeffler will close books on its €1.8bn-equivalent term loan ‘B’ today. Early signs are that investors have received the familiar credit enthusiastically.

  • Buyside access to clearing threatened over FCM struggles

    Access to clearing houses for the buyside may increasingly become limited as some clearing members, known as futures commissions merchants in the US, are struggling to turn a profit on their clearing offerings. This has resulted in some firms exiting such business entirely, and limiting the FCM’s with which buysiders can clear with.

  • A-BEST mezz tightening encouraging for Italian issuers

    FGA Capital, Fiat's car finance joint venture with Crédit Agricole, sold €22.5m of single-A rated bonds well inside guidance on Wednesday. Bankers away from the trade said that was a good indication of demand for mezzanine debt from Italy, which the European Central Bank hopes will increase as it backs the securitization market.

  • European Banking Authority slams allowance pay

    The European Banking Authority has published a report on role-based allowances which looks to close a loophole in the European Union’s “bonus cap”.

  • Gazprom considers bonds: euro or dollar may be before year end, dim sum further off

    Gazprom is considering pricing a dollar or euro benchmark bond before the end of this year. Any potential euro deal would be placed by Deutsche Bank and Crédit Agricole. US banks would be used for a dollar deal, but the mandate for a potential dollar note has not yet been signed.

  • Litigation and comp cuts into JPM CIB results

    JPMorgan’s corporate and investment banking division saw a 34% slump in profits driven by a provision for $1bn in legal expenses and increased compensation costs. The bank saw an overall increase in profits year on year of $5.6bn, slightly below expectations for the quarter.

  • Nomura’s global finance head EMEA departs as Deeny steps in

    The head of Nomura's EMEA global finance division will leave the bank, to be replaced by HSBC's Simon Deeny and head of ECM Ken Brown.

  • Yapi Kredi IPTs offer 20bp-30bp premium, bankers say should go well

    Turkish Yapi ve Kredi Bankasi has released initial price guidance of 375bp over mid-swaps for a dollar five year benchmark bond, offering around a 20bp-30bp premium over its own interpolated curve, according to a banker away from the deal.

  • China Electronics wires $1bn into general

    State owned IT company China Electronics Corp’s $1bn five year term loan for a thin-film-transistor liquid-crystal display (TFT LCD) project in Nanjing, launched into general syndication on October 9.

  • Lloyd's of London mandates in torpid primary market

    Society of Lloyd’s wrested investors' attention away from the geopolitical woes and equity market travails on Wednesday, mandating banks for a roadshow ahead of what would be its first capital markets appearance in more than seven years.

  • Bevan appointed CEO of Russian brokerage BCS Prime Brokerage

    BCS Financial Group, the largest broker of equities and derivatives on the Moscow exchange, has appointed Tim Bevan as CEO of BCS Prime Brokerage, its international arm.

  • Demand for UK debut renminbi bond tops Rmb5.8bn

    The UK’s debut offshore renminbi bond — the first from a non-Chinese sovereign — was almost twice subscribed despite being Rmb1bn ($162.8m) bigger than market participants expected.

  • Xiaomi nets commitments from nine

    Mobile phone maker Xiaomi’s $1bn dual tranche loan has netted commitments from nine lenders in general syndication. The deal has been a popular one as bankers are eager to lend to the company that has ambitious plans for global expansion.

  • Sentiment slump fails to down tight-end Dolphin

    ABN Amro priced its €500m five year Dolphin RMBS at the tight end of guidance on Wednesday morning, demonstrating the continued resilience of core ABS to a broader market slump and placing the trade directly between recent prints from Dutch rivals Aegon and Obvion.

  • Aldermore latest victim of plunging markets, but bankers keep faith in peer Virgin Money

    UK challenger bank Aldermore cancelled its IPO that it was set to price on Wednesday as equity markets continued to weaken. But bankers close to peer Virgin Money, which is due to start bookbuilding this week, are confident the deal will continue.

  • PowerChina returns with debut dollar bond

    State-owned Power Construction Corporation of China (PowerChina) made a successful return to the international bond market, pricing its first ever dollar bond on October 14.

  • SSI opens books for rare $146m Philippine IPO

    Luxury goods retailer SSI Group opened books for its Ps6.5bn ($146m) IPO on October 15, and if all goes well will debut on the Philippine stock exchange in early November to become the largest listing in the country this year.

  • Bank Asya gets cap hike approval as political tussles rage on

    Turkish Bank Asya has received approval for a capital raise worth twice the troubled Islamic lender's market capitalisation.

  • SSA party crashes as global fears take their toll

    Public sector borrowers lining up to print benchmarks in the next two weeks will be anxiously watching the slow bookbuilds of a pair of dollar trades on Wednesday, as rocky debt and equity markets plus ultra-low US Treasury yields combine to make investors extremely cautious on supranational and agency paper.

  • M&A loan flow still way short of banks’ demand

    European investment grade mergers and acquisitions had been quiet since Arkema, Merck KGaA and Siemens announced a trio of bids on September 22, but bankers were confident fresh deals were on the way.

  • EM bond rush to return ahead of Thanksgiving

    The CEEMEA bond market has been slow to start this week as London’s EM bankers drift back jetlagged from the World Bank-IMF meeting in Washington. But with several mandates having been bagged over the last week, many are hopeful for the market to become a lot busier before Thanksgiving.

  • Dozen lined up for Pertamina $1.8bn mandate

    Indonesian power company Pertamina has zeroed in on 12 lenders for its latest financing. The size of the deal has almost doubled to $1.8bn from the $1bn it was seeking in its request for proposals in September.

  • FIG issuers and investors unwilling to play ball ahead of AQR

    Even as the skies over the global economy darken and equities continue to sink, FIG bankers are busy trying to entice what issuers they can to market, pointing to stable secondary spreads and a prolonged lack of supply.

  • Dollar sukuk in race for record as Flydubai mandates banks

    Hopes have been fading that the sukuk market will see a record level of dollar issuance in 2014, with bankers suggesting that there may be only two or three more international deals to print before the end of December. But with Flydubai setting its sights on an earlier debut launch than previously expected, the year could still be on for a photo finish with 2012.

  • Investors double down as BoC AT1 orders hit $18bn

    Bank of China is well on course to reach its $6.5bn target with books in excess of $18bn at the last update for its additional tier one bond on Wednesday. The bank has opted to stick to dollars after dropping a euro tranche, though bankers are offering different reasons for why.

  • EBRD provides €6m loan to Albania's Fondi Besa for SME lending

    The European Bank for Reconstruction and Development has arranged a €6m three year syndicated loan to Albanian microfinance lender Fondi Besa in order to support the development of small businesses.

  • Ashurst hires HK financial services partner

    Ashurst has named Ben Hammond partner in its global financial services regulatory practice.

  • JPM combines debt syndicate, O’Grady and LoBue to co-head

    JP Morgan is bringing all of its fixed income syndicate teams together under new global co-heads Ryan O’Grady and Bob LoBue.

  • Korean Re prints as rates prove positive for perps

    Korean Reinsurance priced its debut subordinated bond on Tuesday. The borrower was keen to take advantage of the low rate environment, and to get ahead of the looming $6.5bn additional tier one from the Bank of China.

  • Citigroup beats expectations, but drops Banamex bomb

    Citigroup reported earnings above expectations on Tuesday. The bank’s consumer banking division accounted for just under half of revenues as CEO Michael Corbat pushes through an unwinding of consumer retail operations, while Mexican subsidiary Banamex faces yet another fraud investigation.

  • Stock Connect in final rounds of testing

    The Shanghai Stock Exchange (SSE) and the Hong Kong stock exchange (HKEx) completed another round of system testing on October 11, ahead of a rumoured October 27 launch. But issues concerning A-share stock sales and China tax requirements are still being worked on by regulators.

  • European RMB race: Russia gets a swap line, ECB rumoured to introduce RMB reserves

    Germany has signed comprehensive economic agreements with China worth $18.1bn as part of premier Li Keqiang's European tour, while Russia has obtained an Rmb150bn swap line. The Russian financial sector, including the Moscow Exchange and lender VTB, has also stepped up its China relationship with a number of co-operation agreements.

  • Insurance perps continue with Dai-ichi

    Subordinated perpetual bond issuance from Asian insurers is on the increase with a second insurer looking to follow Korean Reinsurance to the market next week. The low rate environment is proving conducive for high beta products like sub perps, according to bankers.

  • Argentina’s Clisa builds out maturities after sweetening exchange

    Nearly three quarter of bondholders of Argentine industrial conglomerate Clisa (Compañía Latinoamericana de Infraestructura & Servicios) have agreed to extend the maturity of their debt after the borrower increased the fee on offer, although rating agencies remain concerned about Clisa’s capacity to pay.

  • Indiabulls charges towards debut bond

    Indiabulls Real Estate, part of the Indiabulls Group, is meeting investors for its debut international bond.

  • Yunnan Energy stutters with debut dim sum

    Yunnan Energy Investment’s hopes of pricing its first offshore renminbi bond appears to be bleak with books yet to be covered after one day of bookbuilding.

  • CDS notional spikes again following five-week uptick

    Overall credit default swap notional that was reported to swap data repositories last week spiked by 41% from the previous week, according to data from the International Swaps and Derivatives Association. This follows five weeks of a consistent uptick in CDS notional, with a combined increase of 119%.

  • Nomura loses credit sales chief

    Nomura’s head of leveraged credit sales has left the bank’s New York office.

  • French corporates tap €/$ accumulators

    French corporates have been picking up accumulators on the euro against the US dollar as a tool to buy euros for a more favourable exchange rate by selling volatility in return.

  • Longer loans for Volkswagen's $1bn auto ABS

    Volkswagen’s $1bn prime auto ABS deal received triple-A ratings from Standard & Poor’s Rating Services and Fitch Ratings on Tuesday. The deal is backed by a greater share of extended-term loans than the issuer’s last deal — a growing trend in auto lending.

  • Arkema to hit road for €600m hybrid amid volatile markets

    Arkema, the French chemicals company, announced on Tuesday a roadshow for a hybrid capital issue, despite volatile market conditions in which corporate hybrids in particular have been knocked wider.

  • Queasy markets still OK for corporate bonds, bankers say

    Financial markets are feeling rough, with fears about the global growth outlook, Ebola and war in the Middle East. This week has begun without any corporate bond new issues in Europe. Bankers are cautious about bringing deals – but still believe it might be possible.

  • Funds eye long equity, short credit trades via options

    Hedge funds are looking at going long equity and short credit by buying at-the-money Eurostoxx 50 calls and selling iTraxx Main receivers, in a bid to target equity outperformance in a bullish market.

  • UK brings bumper book to Rmb3bn deal

    The UK showed the enticing possibilities of the offshore renminbi market for sovereigns after it drew more than Rmb5.5bn ($900m) of orders to a debut deal that was priced at the tight end of guidance. Such was the strength of the demand that the sovereign was able to print Rmb3bn — Rmb1bn more than had been expected by market participants.

  • Banks left begging as ZF Friedrichshafen loan syndication closes

    ZF Friedrichshafen, the German car parts maker, has closed the books on the syndication of its €12.5bn loan for the acquisition of Michigan-based TRW Automotive.

  • Geberit aims at bond after flushing out Sanitec

    Swiss toilets firm Geberit on Tuesday announced a Sfr1.29bn deal to buy Finnish bathroom fixtures firm Sanitec, using a dual tranche bridge loan from JP Morgan.

  • ECB must buy covered bonds aggressively, or not at all

    The European Central Bank will face a dilemma when it embarks on its third covered bond purchase programme, which will probably start on Wednesday. Either the central bank buys covered bonds aggressively, something that it has vowed not to do, or it will fail to meet its own target for expanding its balance sheet.

  • The big prize is a capital markets union

    European investment banks, if you ask them, are having a rough time. Giant fines for breaking extraterritorial rules, bewildering and overlapping regulation that never quite matches up with international standards, and capital standards that seem calibrated to banks that have already sold their mortgage books. But hang in there. Capital markets union is coming.

  • Banks agree payout for losses incurred over misleading rates hedges

    Nine banks have agreed to pay £1.5 bn to cover losses linked to interest rate hedging products that were sold to private customers and retail clients since 2001. Many of the products were sold to small and medium enterprises on the understanding that they would hedge against interest rate movements on loans. When rates fell, however, some customers found themselves paying higher fees and facing large break costs to get out of contracts.

  • Tikehau draws insurance companies to new leveraged loan fund

    Tikehau has announced completion of a €230m leveraged loan fund, bringing the value of the French asset manager’s leveraged loan portfolio to €700m.

  • Fourth quarter ECM deluge fails to arrive as busy period turns quiet

    The usual busy period of equity capital markets activity in the fourth quarter is unlikely to arrive in 2014, bankers said on Tuesday. Investors are opting to sit out of deals amid consistently falling markets.

  • RAC launches £1.25bn loan as GIC buys in

    UK car breakdown recovery firm RAC has launched a £1.25bn loan to refinance debt and recapitalise its debt structure after the Government of Singapore Investment Corp became a shareholder in the company.

  • Stop Ebola now – before it stops us

    Don’t switch off. Ebola may not have hit your P&L yet, but it’s going to, soon, and hard, whatever your job is. And look at the charts. The logic is inexorable: the longer we take to overcome the disease, the worse the cost will be – for the global economy and in human life. This is not about a few percentage points of GDP. Modern civilisation itself is at risk.

  • Citi way ahead in CEEMEA — too far for JPM?

    Citi is posting the widest lead in volumes of CEEMEA bonds arranged since 2011, meaning the US bank is odds-on favourite to finish 2014 at the top of the table. But though the gap will be difficult for JP Morgan to close by December, figures from previous years show that it is not impossible.

  • Gazprom signed €500m loan with European banks in September

    Gazprom agreed a €500m two year loan with a consortium of banks in September, according to details the Russian gas company published in its half year financial report.

  • JP Morgan to sell on crisis-era UK RMBS

    JP Morgan is at the head of a consortium that has acquired a £2.7bn portfolio of legacy performing UK residential mortgages from the UK government’s bad bank, and has structured the assets into two RMBS transactions to syndicate to investors.

  • Time for investors to make up their mind about Asia tech

    Alibaba’s record breaking $25bn IPO was supposed to be the trigger that dispelled investor fears about Asian technology companies and opened to door to future listings. But as the volatility in such stocks has shown, investor sentiment in the sector is subject to wild swings. And that is hurting the IPO pipeline.

  • Finansbank prints rare dollar MTN

    Finansbank sold its fourth dollar denominated MTN on Monday, as Turkish banks’ high yields are attracting short term investors away from emerging market stalwarts including India and China.

  • UK set for blowout renminbi debut

    The UK looks to have laid down a serious marker for other sovereigns wishing to follow it into the offshore renminbi market, with the book on its debut deal over twice subscribed and guidance well inside initial price thoughts as of Tuesday morning London time.

  • Chilean E-CL finishes roadshow on Wednesday

    E-CL, the largest power generator in the north of Chile, finishes the roadshow for its dollar bond on Wednesday.

  • Ford picks up auto baton as core ABS refuses to budge

    Ford Credit Europe Bank on Tuesday mandated banks for its second Globaldrive German auto ABS transaction of the year, with bankers expecting another tight post-ECB print as core ABS spreads in European continue to shrug off broader market volatility.

  • MS promotes three M&A bankers; CICC CEO resigns

    Morgan Stanley has promoted Samuel Kim, Richard Wong and James Tam within the bank’s mergers and acquisitions (M&A) division as part of the bank’s efforts to match its most senior bankers with key clients in the region.

  • Jimmy Choo plays it safe with narrowed price range

    Jimmy Choo, the UK luxury shoes and bags company, narrowed pricing on its £136m IPO on Monday, opting for a conservative price range in light of tumbling markets and fears about IPOs.

  • Rabobank’s Smook to leads Asia capital markets; Boey quits BTMU

    Rieks Smook is Rabobank’s new head of capital markets, Asia, replacing Guy Hargreaves, who has left the bank, sources told GlobalCapital Asia.

  • Total Derivatives: PBoC repo move steepens CNY curve

    The People's Bank of China (PBoC) triggered a short-end led rally on Tuesday when it sold 14 day repos at lower than expected levels. Swaps were offered and short swap rates plummeted, steepening the 1s/10s curve in the process, writes Deirdre Yeung of Total Derivatives.

  • PowerChina picks pricing for perp

    Power Construction Corp of China (PowerChina) is returning to the market for the second outing this year and this time around is looking to price a perpetual bond.

  • Deutsche shrugs off volatility to tap large senior

    Deutsche Bank made a surprise visit to the primary market with a tap of its 1.25% €1.75bn September 2021 senior unsecured bonds on a day when cash bonds are trading wider and bank equities are largely tanking.

  • Goldman's self-denying strategy debunks sukuk defences

    A grim secondary performance by Goldman Sachs’ debut sukuk has made it a soft target for anyone who holds that the Islamic market is not ready for such non-halal borrowers. But despite the performance, Goldman's sukuk will be remembered as the issuer which debunked the market purists' defences

  • Books above Rmb3.5bn for UK govt RMB bond

    The UK government opened books for its debut renminbi-denominated bonds on October 14. The three year deal was first offered with price guidance in the area of 2.9%, before being cut to 2.75% area in the late afternoon Hong Kong time.

  • UK to help China achieve capital account opening

    The UK government's landmark RMB bond is grabbing attention this week, but financial market participants are already looking at the next steps, with panda and green bonds seen as possible next areas of focus for Chinese capital account liberalisation, according to HSBC.

  • Astra goes clubbing for $300m; CP on the hunt for new money

    Indonesian conglomerate Astra International is close to winding up a $300m club loan with eight lenders.

  • Multiple firsts for Korean Re debut

    Korean Reinsurance (Korean Re) has brought out Korea’s first offshore subordinated bond from the insurance sector.

  • After stress tests, many banks still vulnerable: Fitch

    European banks could need to spend as much as €250bn to raise their reserve coverage levels against problem loans to healthy levels, according to Fitch.

  • Tata Steel $5.6bn loan rolls into general

    A portion of Tata Steel’s $5.6bn borrowing, which has been in senior syndication since July, finally launched into general on October 13, with five banks joining the original 11 leads.

  • Country Garden’s $410m rights issue 9x subscribed

    Chinese real estate developer Country Garden Holdings got a red hot reception for its HK$3.18bn ($410m) rights issue on October 14 as the transaction ended up close to nine times covered.

  • Bank of China to drop AT1 euro tranche

    Bank of China (BoC) is considering dropping the euro tranche for its debut additional tier one (AT1) after failing to generate enough interest for that currency on its global roadshow.

  • Chile’s Alsacia closes in on restructuring

    Chilean bus company Alsacia will present its restructuring proposals to a US court after more than four fifths of its bondholders approved the plans.

  • Citi grows Asian national desks

    Citi has expanded its Asia coverage desks to keep up with growing number of multinational corporations from the region.

  • Non-bank servicing could be a house of cards

    Non-bank mortgage servicers might not be able to overcome regulatory interventions as their share prices deteriorate, and holders of mortgage-backed securities could see interruptions in cash flows as a result, according to market sources.

  • Weaker underwriting for prime autos

    Prime auto lenders have been financing their loans more cheaply in the ABS markets in recent months, despite weaker collateral performance and longer maturities.

  • US, EU regulators must approach NDF clearing with caution

    Regulators should be cautious when proposing a clearing mandate for non-deliverable forwards due to the global nature of the fx market, along with regulatory differences between the US and Europe that have yet to be resolved.

  • CBOE futures exchange sees record week post-FOMC

    The Chicago Board Options Exchange saw record volumes for futures that were traded on both the CBOE Futures Exchange and CBOE Volatility Index following an increase in market volatility.

  • Raters battle for third SoFi securitization, quarterly issuance on way

    San Francisco-based peer-to-peer lender SoFi is in talks with three ratings agencies regarding its third securitization of student loan refinancings, which is set to hit the market in the first week of November and should lead to regular quarterly issuances from the company.

  • Longer and cheaper: Dignity refinances £595m securitization

    Dignity, the UK funeral services business, has completed the refinancing of its whole business securitization, issued in 2002. The exchange offer and issue of new notes allows it to extend the average maturity of its bonds from 10 to 22 years, and still save £7m a year of interest costs.

  • Gunvor chooses eight banks for $900m revolver

    Commodity trader Gunvor has launched a $900m dual tranche revolving credit facility into syndication. The loan replaces one tranche of a deal signed in 2013.

  • Forty banks board Airbus's €3bn revolver refi

    European aerospace firm Airbus has completed a €3bn loan syndication to amend and extend its €3bn five year revolving credit facility, attracting the support of 40 banks.

  • Market agrees protocol to slow close-out of positions in failing banks

    A slew of major global banks have agreed to sign a protocol by the International Swaps and Derivatives Association that imposes a stay on cross-default and major termination rights within standard ISDA derivatives contracts if a counterparty defaults.

  • Infineon loan for IR buy ‘substantially oversubscribed’

    German semiconductor maker Infineon has signed €1.55bn of loans which will go towards its $3bn purchase of California-based International Rectifier Corp.

  • Corialis makes fresh concessions to get done, squeezes bank fees

    Corialis, the Belgian aluminium windows maker, is expected to close the book for its €483m leveraged loan on Monday evening, after lenders won significant concessions from Advent International, the private equity firm buying Corialis.

  • High yield issuance dries up as banks have ducked underwriting deals

    Banks' reluctance to underwrite high yield transactions in September is contributing to the absence of new issuance this month, leveraged bankers said today.

  • Health property firm Assura raises £180m for acquisitions

    Assura, the UK property company that specialises in doctors' surgeries, has raised £180m by selling new shares, in a deal completed on Friday.

  • Euronext picks ex-SG banker to run ETFs and investment funds

    Benjamin Fussien, who worked in institutional sales of equities, derivatives and exchange-traded funds at Carax in Paris, has joined Euronext as head of ETFs and investment funds, also in Paris.

  • Amdipharm Mercury launches £985m loan

    UK pharmaceuticals group Amdipharm Mercury, owned by Cinven, has launched a £985m-equivalent loan that will refinance debt and recapitalise its senior debt structure.

  • Ashmore expands into Saudi Arabia

    Ashmore Group, the London-headquartered emerging markets fund, has opened a local asset management office in Riyadh, Saudi Arabia.

  • Mid-tier German banks among those likely to fail assessment: RBS

    Most European banks are likely to pass the European Central Bank’s Comprehensive Assessment, the results of which will be released on October 26, but mid-tier Portuguese, Italian, Cypriot and German banks are most at risk of falling short of a passing grade, according to analysts at Royal Bank of Scotland.

  • Weary Punch bondholders hit again by low S&P and Fitch ratings

    Punch Taverns’ bondholders had only just finished celebrating the culmination of the pub group’s seemingly endless securitization restructuring saga, when late last week Fitch and Standard & Poor’s delivered another blow by assigning much lower ratings than Moody’s to several tranches.

  • Côte d’Ivoire set to raise $1bn sovereign bond next year

    Côte d’Ivoire has developed a taste for the international capital markets. After a successful $750m Eurobond in July, prime minister and finance minister Daniel Kablan Duncan tells Emerging Markets about his plans to raise $1bn on the international markets

  • EBRD's 'Semed' investments will reach €1.5bn, says president

    European Bank for Reconstruction and Development president Sir Suma Chakrabarti has said he expects his bank’s investment portfolio in Morocco, Tunisia, Egypt and Jordan to reach €1.5bn.

  • Citi preps first Aussie RMBS for three years

    Investors will be able to buy Citi-branded Australian RMBS for the first time for more than three years this month, after Citibank Australia mandated for a new deal from its Securitised Australian Mortgage Trust platform.

  • Chile to mine markets for $3bn bond for copper investment

    Chile plans to issue $3bn of sovereign debt for its state-owned copper company as part of ambitious plans to boost economic growth by raising output of the metal.

  • Iranian capital markets to be ‘Turkey on steroids’ if November nuclear deal is reached

    The possible resolution of a dispute over Ian’s nuclear programme next month could trigger a surge in interest by global investors in a country that has been off limits for many years.

  • Eurozone lenders rush to Russia’s bond market as sanctions bite

    Banks in the eurozone are piling into the Russian rouble bond market. They want to source as much financing as possible locally to limit cross-border exposure in the face of Western sanctions

  • Eyes on Tele Columbus as bankers say more ECM deals could be pulled

    The weak European equity markets that led to three deals being postponed last week could fell yet more issues, said bankers on Monday. Sales including that by German cable firm Tele Columbus looked under threat.

  • FGA Capital eyes 20bp saving with Italian ABS after ECB news

    Fiat's car finance joint venture with Crédit Agricole, FGA Capital, is heading for a significant improvement on spread levels for its latest A-BEST loan securitization, in the first public Italian collateral-backed deal since the European Central Bank outlined the scope of its forthcoming asset purchases.

  • Miserable markets mean no bonds on Monday

    All was quiet in the Asian bond market on Monday as secondary market volatility, geopolitical risk and general concerns about slowing global growth all provided a less than ideal issuing platform. Bond desks were closed in Japan and the US also leaving the market directionless, according to a syndicate banker.

  • Loans round-up: Rongshi debuts $150m offshore; Bhira allocates $560m refi

    Rongshi International Holding Company has launched its $150m offshore debut into limited syndication, with two banks at the top.

  • The SocGeneration game

    International observers have been called in to deal with the fallout over alleged misconduct in the most important count of the last 12 months.

  • China Taiping sets sight on $828m rights issue

    Hong Kong-listed China Taiping Insurance Holdings is seeking to raise HK$6.43bn ($828m) from a 21 for 100 rights issue in order to repay a $570m loan it took last December.

  • All's Well that Ends Well

    Loan Ranger recently had occasion to put his grey cells through their paces at a pub quiz put on by a major French bank last week.

  • Natixis names research heads

    Natixis has appointed a new head of credit research and a new head of equity research, both internal promotions.

  • Cowell e Holdings poses for HK IPO

    Cowell e Holdings, a supplier of camera modules for mobile devices, is aiming for a listing on the Hong Kong Stock Exchange and has filed a prospectus with the regulator.

  • ICBC Financial Leasing eyes $350m onshore

    ICBC Financial Leasing, a subsidiary of Industrial and Commercial Bank of China, is raising a $350m loan onshore with five mandated lead arrangers and bookrunners. The company is having to pay a premium of over 40bp for accessing dollars onshore.

  • Nakao’s funding coup: ADB finances could treble to $50bn

    ADB president Takehiko Nakao has devised an innovative plan to treble the bank’s resources to meet infrastructure needs without risking its AAA credit rating, writes Anthony Rowley of Emerging Markets, a sister publication of Asiamoney.

  • CVC, First Media to fetch $668m from Link Net follow-on

    A total of four shareholders including private equity firm CVC Capital Partners and cable operator First Media is in the market to sell Rph8.15tr ($668m) shares in Link Net in what could be Indonesia’s largest equity transaction of the year.

  • De Silva boosts BAML's senior Asian ECM team

    Bank of America Merrill Lynch has hired from within for the newly created role of head of southeast Asia equity capital markets in Singapore. The hire beefs up the bank’s Asian ECM senior management team.

  • CRCC gets greenlight to spin off Kunming Railway

    State-owned China Railway Construction Corp (CRCC) is poised to spin off its subsidiary Kunming China Railway Large Maintenance Machinery (KCRC) onto the Hong Kong Stock Exchange after receiving board approval to do so on October 10.

  • Updated: SSI to offer investors rare Philippines IPO on Wednesday

    A quiet Philippines IPO market is finally about to see some action with luxury goods retailer SSI Group set to open books for a Ps6.5bn ($146m) transaction on October 15. While the size of the offering has been drastically reduced by 40%, the IPO is still expected to be the largest in the country this year.

  • Total Derivatives: CNY curve steepens on risk aversion, data

    Continuing global risk aversion has supported receiving in the short end of the CNY swap curve, while firm Chinese trade data has backed mild underperformance in the longer maturities. As a result the CNY swap curve has steepened, writes Deirdre Yeung of Total Derivatives.

  • StanChart adds four to cash equity sales team

    Standard Chartered has made four appointments to its cash equities sales team in Asia as part of its efforts to enhance its equities division in response to growing demand from clients.

  • Asean debt issuance to rise, intra-region expansion stagnates: Moody’s

    Asean debt issuance is expected to grow in 2015 thanks to region's positive economic and market outlook and as Basel III regulations continue to be implemented. But despite this, companies will be slow to expand within the region, according to Moody's.

  • BNPP promotes Ferdane to Brazil head

    Sandrine Ferdane, BNP Paribas’s head of corporate coverage for Brazil, has been promoted to chief executive and country manager for Brazil, the bank said.

  • LatAm bond party to go on in face of volatility

    Latin America’s debt bankers believe that periods of volatility caused by US interest rate rises and secondary market illiquidity will not derail the stomping progress of the region’s cross-border bond market, which is set for another record-breaking year.

  • Venezuela scales October debt mountain but citizens pay the price

    Venezuela has begun to pay the $4.5bn in debt maturity payments owed by the sovereign and by oil company PDVSA. But while bondholders may breathe more easily, analysts say devaluation is needed urgently as the country continues to suffer excess demand for dollars.

  • Kuroda’s not for turning: resilient BoJ governor shrugs off QE criticism

    In an exclusive interview with Emerging Markets, a sister publication of Asiamoney, Bank of Japan governor Haruhiko Kuroda insisted the policies of Abenomics were working, not hurting, and defended the ways the world’s big four central banks were operating monetary policy, writes Anthony Rowley.

  • France, Luxembourg eyeing up RMB bonds after UK’s trailblazer

    China is keen to step up the pace of internationalising the renminbi - and European governments are keen to help. France is preparing to issue a renminbi bond, three banking sources have told Emerging Markets, a sister publication of GlobalRMB. Luxembourg is also considering a deal, one said.

  • Bangladesh shelves bond plans as remittances hit record

    Record remittances from Bangladeshis living abroad have negated the country’s need to issue international debt, the finance minister told Emerging Markets.

  • UK to open renminbi bond market for sovereigns, picks banks

    The UK is gearing up to become the first government, apart from China, to sell a renminbi bond, in a deal that could come as soon as next week and be worth Rmb2bn.

  • SEC approval appears to bless HFT tactics

    On Friday the Securities & Exchange Commission approved an order type on the New York Stock Exchange which allows the exchange to give preferential treatment to some orders over others. Any market participant can use the order type, but the move is expected to disproportionately benefit high frequency trading firms.

  • Markit adopts new credit risk signal

    Markit has added a new set of credit risk tools to its research signals platform in order to help traders and risk managers identify credits that are likely to undergo significant price changes.

  • Azeri Accessbank prints $50m ECP

    Azeri Accessbank printed a $50m one year euro commercial paper (ECP) on Friday after meeting investors in mid-September.

  • ENN Energy mandates two for dollar bond

    Chinese clean energy firm ENN Energy Holdings has mandated HSBC and UBS to arrange a series of investor meetings that are due to begin in October 13.

  • Lloyds DCM chief to head commercial bank Europe

    Farouk Ramzan, former head of capital markets origination at Lloyds Bank, will become head of Lloyds Bank Commercial Banking Europe.

  • Unrated Bohai survives secondary sell-off

    Chinese state-owned Bohai Steel Group made its debut in the debt market with a dim sum bond on October 9, and managed to put in a good showing in the secondary market the following day, even though talks of a eurozone recession prompted a fire sale across markets.

  • Barclays pulls Energy Earth dim sum

    Barclays has been forced to pull what would have been the first offshore renminbi bond from a Thai borrower, with investors staying away because of a lack of visibility on the company’s business operations.

  • Toll Asia connects for S$300m refi loan

    Singapore transport and logistics company Toll Asia is in the market for a S$300m ($236m) loan that is being led by two banks.

  • JPM makes junior syndicate cut

    JP Morgan has put Elena Garcia Hernandez, an analyst on its syndicate desk in London, at risk of redundancy.

  • ABC $300m sidesteps subordination with SPV

    Agricultural Bank of China (ABC) took advantage of low US Treasury yields on October 9 to raise $300m via a newly established special purpose vehicle (SPV), Advance Wisdom Investments.

  • Singapore seeks to revamp Reits

    The Monetary Authority of Singapore (MAS) has released a consultation paper on real estate investment trusts (Reits) with proposals it says will improve governance while offering more flexibility.

  • Hua Hong nets $332m in HK IPO

    Hua Hong Semiconductor has raised HK$2.57bn ($332m) from its Hong Kong IPO, in a deal that saw the shares price close to the bottom of the range.

  • Greenland prices second offshore bond with onshore guarantee

    Greenland Global Investment returned to the offshore debt market for the second time this year on October 10, getting a better response now that investors have had time to get to grips the deal’s onshore-guarantee structure.

  • RMB round-up: October 10, 2014

    In this round-up, RMB clearing in Hong Kong reaches a new record, RMB deposits in Seoul keep surging, two more tests for the Shanghai-Hong Kong Stock Connect are coming up ahead of its launch and Shenzhen is considering its own mutual trading initiative.

  • Agile scraps $359m one-for-five rights issue

    Agile Property Holdings, which said in September that it was looking to raise HK$2.785bn ($359m) from a one-for-five rights issue, has now scrapped the fundraising plan.

  • Xiaomi nets one more commitment; Venten to head loans at CBA

    Mobile phone maker Xiaomi’s $1bn dual tranche loan has received commitments from eight lenders so far in the general phase. Banks that made it in time for the loan’s October 6 early bird deadline earn extra fees of 15bp.

  • Woori Bank, ICBC Asia offer debut Seoul-issued RMB bonds

    Woori Bank (WB) was selling the first locally issued and listed renminbi-denominated bond in Seoul on October 10. The bank’s Rmb200m ($32.6m) two year deal was priced at 3.87%, according to two sources based in Seoul.

  • Market tightens for LatAm duo but no end to volatility

    Mexico’s Pemex and Peru's InRetail timed their deals to coincide with two of the better days in markets in recent weeks. Bankers said the attractive pricing achieved by the borrowers showed the market was far from shut, but volatility is expected to remain despite the Federal Open Market Committee (FOMC) providing few surprises at its latest meeting on Wednesday.

  • SEC decision on NYSE order type to set the limits for HFT

    The Securities and Exchange Commission was scheduled to decide on Thursday whether to approve a contentious order type believed to allow favorable treatment for high frequency traders over other investors. The decision, yet to be disclosed, could provide insight into the SEC’s findings since it launched an investigation into order types more than two years ago.

  • Spain EUR5bn 0.55% Nov 19

  • EIB USD1bn 2.5% Oct 24

  • Quebec USD1.6bn 2.875% Oct 24

  • Tighter spreads bode well for risk transfer and real economy lending

    European banks are slowly reengaging with risk transfer trades, with half a dozen in the market and the outlook improving as ECB actions promise to make such trades more.

  • A perfect storm brews in CLOs

    The eternal tussle between equity and triple-A investors in collateralised loan obligations intensified this week, as a widening in triple-A CLO spreads drove down equity returns even further and forced some arrangers and managers to make concessions in order to lock senior debt investors into their deals.

  • KfW USD1.5bn 1.75% Oct 19

  • BNG EUR500m 0.375% Oct 19

  • PacRub exchange acceptance below a third

    Colombian private sector oil company Pacific Rubiales said it had met its target for an exchange offer even though fewer than a third of bondholders had participated.

  • TeraExchange executes maiden bitcoin derivs trade

    Swap execution facility TeraExchange has executed the first bitcoin derivatives transaction between bitcoin firm digitalBTC and an unknown hedging company.

  • UK launches landmark debut RMB bond

    The UK on Thursday launched its much-heralded debut renminbi denominated bond, the first ever from a foreign sovereign. The deal is expected to mark a big increase in profile for the Chinese currency among international issuers and investors.

  • Revived Westfield CMBS sold despite structural questions

    Credit Agricole CIB and Deutsche Bank successfully placed the financing for the Westfield Stratford shopping centre, a UK CMBS called Strat 2014, on Tuesday, shrugging off questions about the structure of the deal that dogged it when the leads first marketed it in late July.

  • Brazil faces uphill fight to rush through covered bonds

    Brazil's covered bond law entered the statute book on Wednesday, but the country faces an uphill struggle to work through the details of the legislation in time for the country's big banks to start issuing in the first quarter of 2015, the finance ministry's target date.

  • Investors take wheel as clouds gather over US CLO market

    The bull market in US collateralised loan obligations showed signs of running out of steam this week. With a huge amount of supply still in the pipeline as managers try to ramp up assets under management before risk retention rules are finalised, some deals in the market are having trouble getting over the finish line after a torrid time for secondary triple-A and double-A spreads last week.

  • SRI deals build new bridges

    The green bond market has enjoyed one of the most remarkable weeks in its short life, with a series of deals that bankers say could help change the future of the market — and that all were priced roughly close to their issuers’ conventional curve.

  • Infra Foch refi fires up French investors

    Infra Foch, a company formed to buy French car park operator Vinci Park, attracted more than €4bn of orders for a dual-tranche bond market debut on Thursday.

  • Unibail hits it tight on the Reg S deal

    Unibail-Rodamco, the French property company, achieved tight pricing on its latest eight year euro issue thanks to strong demand from across continental Europe.

  • Periphery pick-up tipped after Spain brings linker

    The pace of syndicated sovereign supply from the eurozone periphery is set to pick up as Ireland, Greece and Italy launch new issues over the next few weeks. The first two have indicated that syndications could come in the final quarter, while Italy launches the next line of its BTP Italia domestic inflation-linked product in two weeks’ time – when it will be hoping to repeat the success of Spain, which added to its linker curve this week.

  • Rarity boosts euro appeal of Germany’s Bertelsmann

    Scarcity value helped German media group Bertelsmann attract more than €2bn of demand for a new 10 year benchmark on Wednesday.

  • Two new issues in HY but bankers still wary of launching deals

    Two issuers completed intraday bonds on Tuesday, raising hopes of renewed activity in the primary high yield market, following a week in which not a single new deal was priced. But bankers said leveraged firms were still wary of launching transactions, and apart from those two, no other deal was issued this week.

  • MTN Leak: A quiz to end all quizzes

    The best and brightest in capital markets media turned out for Société Générale's legendary quiz night on Wednesday, this year held at McQueen bar in sunny Shoreditch.

  • GM powers back on five year euro

    General Motors' finance arm made a triumphant return to the euro market for the first time since the financial crisis on Wednesday, attracting more than six times oversubscription for a €500m five year deal.

  • Melbourne Airport soars on the back of French demand

    Strong demand from French insurers helped swell books for Melbourne Airport’s 10 year euro market return to more than €1.9bn on Wednesday.

  • GS debut offers lessons for conventional sukuk

    Goldman Sachs’ sukuk has provided a useful lesson for other conventional borrowers looking at the asset class. Opinions are divided on the merits of non-Islamic borrowers testing the market, but bankers both close to and away from the deal agree that a wider distribution would be better for future debuts.

  • The hangover, part n

    For the best part of two years, ECM bankers haven’t been able to believe their luck. But just as they were starting to enjoy themselves, they find they're in a re-run of less happy times.

  • Tunisia requests proposals on dollar debut sukuk

    The Republic of Tunisia looks set to join the growing number of sovereign borrowers to issue a debut sukuk in 2014, having requested proposals from banks for a five year deal before the end of the year.

  • Telefónica’s 15 year euros draw a crowd

    Telefónica attracted more than €3.3bn of demand for its longest dated senior euro deal in more than a decade on Tuesday.

  • Atrium prices a second euro issuance in range

    Atrium European Real Estate, an operator of shopping malls in central and eastern Europe, priced its second euro-denominated bond in line with guidance on Thursday.

  • Sovereigns may be slow to follow Kazakhstan's CAC breakthrough

    Kazakhstan this week issued the first sovereign bonds featuring the latest boilerplate language designed to prevent defaults being hijacked, Argentina-style, by holdout creditors, writes Francesca Young. The $2.5bn deal was a huge success, with a bulging order book and tight price, but progress towards universal take-up of ICMA recommendations across emerging markets will take time, said bankers and analysts.

  • Merck & Co wins plaudits for its €2.5bn issue and launches buyback on dollars

    Merck & Co, the US pharmaceutical company, launched its first bond in euros for seven years on Monday, just days after its €1.5bn deal from 2007 had matured. With markets recovering after a queasy time last week, the €2.5bn issue was widely seen as a success by rival bankers.

  • People Moves in Brief

    Dean returns to Barclays - UBS's Pierre to join Mitsubishi - Kiselevich cut at BAML - CS hires Hentschel for loans

  • Belfius brings Belgian public first

    Although this week’s primary covered bond supply was limited to three deals and the near term outlook is limited by AQR results and Q3 reporting blackouts, demand reached a substantial €5.4bn of orders. Notable activity included the first public sector issue under Belgium’s covered bond law and the tightest ever Canadian euro print.

  • RMBS supply picks up despite softer tone

    New issue momentum picked up in the RMBS market this week as one Dutch deal was priced and another was announced, along with a sterling deal from a UK bank. However, pricing softened as euphoria over the ECB’s purchase programme began to wane.

  • Austrian bid supports strong euro demand for Voestalpine

    Strong domestic support allowed unrated Austrian metals group Voestalpine to increase its seven year euro market return to €400m on Wednesday, despite substantial price tightening.

  • US investment grade holds firm after rollercoaster ride

    High grade borrowers were thin on the ground in the US market this week as volatility roiled equities and earnings blackouts loomed large.

  • Agencies print Kiwi amid dwindling supply

    The New Zealand dollar market has quietened down since the summer and is likely to slow more in coming weeks but Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) and Korea Eximbank found five year demand this week. Elsewhere in non-core currencies investors flocked to a rare appearance by the Province of Lower Austria in Swiss francs.

  • Steady issuance and stable spreads for agency risk-sharing MBS

    Market participants expect spreads to remain stable for agency risk-sharing MBS offerings as more and more of the notes are issued.

  • Deutsche Wohnen agrees loans totalling €1.36bn

    Deutsche Wohnen, the German residential property company, has agreed loans totalling €1.36bn with two German banks, completing a €1.76bn refinancing process that began with its €400m seven year convertible bond issue at the beginning of September.

  • Solar fund increases flexibility with share issue programme

    NextEnergy Solar Fund, an alternative power investor, said on Thursday that it is to begin a placing programme that could see it issue up to £260m of new shares in a structure finding favour with similar infrastructure funds.

  • EBA warns issuers on AT1 complexity

    The European Banking Authority fired a warning shot at issuers of alternative tier one capital, making plain its distaste for structural features that it thinks are overly complex or non-standard. Dynamic triggers, regulatory calls and anything that mitigates against shareholder dilution are among the features in its sights.

  • Quebec breaks benchmark record on return

    Investors flocked to Quebec’s first dollar benchmark in nearly two years this week. Although the province had intended to issue $1bn, the scale of the demand enabled it to print its largest ever deal in the currency.

  • Romania’s four banks for long euro bond revealed

    Romania is planning to issue a long euro benchmark and has picked four banks for the deal.

  • Apax makes its move on Exact

    UK private equity firm Apax Partners has made a €730m buyout offer for Exact Holding, the Dutch accounting software company.

  • Standard Chartered bucks CEEMEA loans trend

    As syndicated loan volumes in central and eastern Europe dwindled in the first nine months of the year, hit by conflict in Ukraine and sanctions on Russian banks and energy companies, Standard Chartered has emerged at the top of the bookrunner league tables.

  • Abbey breezes through return

    Abbey National returned to the sterling senior unsecured market for the first time since 2010 this week. Although the market had softened, the Santander-owned UK bank’s 15 year deal performed well.

  • IPOs start to fall as equity investors turn selective on new deals

    Two European IPOs were pulled this week, even as the other two deals that began bookbuilding were quickly covered, demonstrating an increased sensitivity to risk and cyclical stocks among investors.

  • TSKB mandates banks for dollar bond debut

    Turkiye Sinai Kalkinma Bankasi (TSKB) has picked banks for its inaugural dollar bond and kicks off investor meetings next week.

  • Investment grade and emerging markets loans, news in briefs — October 10, 2014

    United Internet — Vitol — Mol

  • Russian banks reach for hard currency via domestic debt

    Russia’s liquidity-parched banks are ready to sidestep their exclusion from international capital markets by issuing domestic bonds in foreign currency. While the local non-rouble market is still in its infancy, sizes of up to $1bn are under discussion for the new issues — with the country’s sovereign wealth fund a potential buyer.

  • NBAD can pull off global push but needs deep pockets

    Raising one’s game from regional bank to global is a risky strategy at the best of times, so for National Bank of Abu Dhabi to attempt the move when other firms are retrenching is is bound to draw some scepticism.

  • Styrolution goes again with €1.05bn term loan

    German styrenics supplier Styrolution held a London bank meeting on Tuesday for a €1.05bn-equivalent five year term loan ‘B’, which marks the company’s return to the market after pulling a larger facility in the summer.

  • Raiffeisenbank set to issue first public Czech covered bond in euros

    Czech Raiffeisenbank has mandated leads for the first publicly distributed euro-denominated benchmark Czech covered bond, which is expected to be launched following a roadshow. The transaction, which is eligible for repo with the European Central Bank and documented under English law, is likely to be followed by a string of other euro denominated Czech covered bond benchmarks.

  • Lukoil looks for PXF deal in effort to tempt Western lenders

    Private sector Russian oil company Lukoil has requested proposals from European banks on a possible pre-export finance deal, said bankers.

  • Walt Disney to help Paris park subsidiary with €1bn recapitalisation

    Euro Disney, the company that owns French theme park Disneyland Paris, is preparing to launch a €1bn recapitalisation supported by the Walt Disney Company, the parent that could assume ownership of the whole company if the deal fails.

  • CIBC gets cheapest ever euro funding for a Canadian bank

    Canadian Imperial Bank of Commerce has funded itself at the cheapest ever level for any Canadian bank in the euro market. The issuer, which this week priced a five year €1bn covered bond, dispensed with setting guidance and went straight from initial price thoughts to the final spread.

  • Don't draw CAC conclusions from Kazakhstan blowout

    Kazakhstan this week became the first country to fully adopt ICMA’s recommendations for a collection action clause in its sovereign bond issue. But the new issue was such a blowout that it cannot be used to draw conclusions about the costs of doing so — other borrowers may have to pay up to include the clause.

  • Equity capital markets, news in brief — October 10, 2014

  • Schaeffler guides price on €1.8bn term loan 'B'

    German ball bearing producer Schaeffler has set price guidance on its €1.8bn-equivalent term loan ‘B’.

  • Atrium prices second euros in range

    Atrium European Real Estate, an operator of shopping malls in central and eastern Europe, priced its second euro-denominated bond in line with guidance on Thursday.

  • Infra Foch finds ample demand for first euro outing

    Infra Foch, a company formed to buy French car park operator Vinci Park, attracted more than €4bn of orders for a dual-tranche bond market debut on Thursday.

  • Smorgasbord of European ABS follows ECB

    A wide variety of deals have been announced or priced in the European ABS market in the week following the ECB Governing Council meeting, which revealed more details about the central bank’s plans to buy European ABS.

  • Lloyds replaces Boz with ex-Barclays FIG boss

    Lloyds Bank has hired Allen Appen from Barclays to fill a new role created after the departure of Robert ‘Boz’ Plehn, Lloyds’ former head of asset-backed securities, earlier this year.

  • Buysiders shift new T+2 settlement responsibility to dealers

    New rules requiring market participants to settle fixed income securities transactions in two days, instead of three, are leading some buyside firms to pass on the new responsibilities to their dealers in return for a fee. Settlement deadlines in 28 European countries moved to T+2 on October 6.

  • Spie IPO collapses as markets turn increasingly selective

    French building firm Spie pulled its IPO on Thursday, as increasingly selective investors avoided the deal amid falling equity markets.

  • Power Construction building for perp offering

    Power Construction Corp of China (PowerChina) is meeting investors on October 10 over the possibilities of a US dollar perpetual bond in what could be its second offshore issuance this year.

  • Lloyds prepares to pay off market-opening Perma deal

    Lloyds has made a cash injection into its Permanent UK RMBS master trust, paying off the loan tranches related to Permanent 2009-1, the deal which reopened the RMBS market in Europe after the crisis.

  • Good morning Vietnam! Country’s ECM market wakes up

    The Vietnamese ECM market is finally going to see some action, with dates finalised for Vietnam Airlines’ VND1.1tr ($51m) IPO and other state-owned enterprises given the green light to follow. The challenges facing the government’s privatisation plans are plenty, but the deals come at a time when investors are slowly but steadily warming to the country, writes Rashmi Kumar.

  • UK launches landmark debut RMB bond

    The UK government on Thursday launched its much-heralded debut RMB denominated bond, the first ever from a sovereign that is not China. The deal is expected to mark a big increase in profile for the Chinese currency among international issuers and investors.

  • French hotel investment firm plots cap hike

    French hotel investment firm Foncière des Murs is set to raise €200m through a capital raise announced on Thursday.

  • Asia ex Japan DCM news in brief, October 9, 2014

    ABC HK tapping market with $300m bond — Greenland returns with 2017s — Bohai Steel offers three year dim sum — Energy Earth digs up Thailand’s first dim sum

  • Asset managers change swap docs fearing capital charges from non-EU CCPs

    Asset managers are scrambling to amend swap documents so that they clear derivatives with EU clearing houses before the expiry of a December 15 deadline. If the EU decides not to recognise other countries' clearing houses by that date, or doesn't extend the deadline, then firms that clear trades with non-EU clearing houses will face sky-high capital requirements.

  • FWD exits HKT Trust with $141m block amid volatility

    FWD Life Insurance Company has made HK$1.09bn ($141m) by selling its entire stake in HKT Trust and HKT Limited, in a block that drew strong demand despite turbulent market conditions when the trade was launched.

  • Solar power fund begins share issue programme

    NextEnergy Solar Fund, an alternative power investor, said on Thursday that it is to begin a placing programme that could see it issue up to £260m of new shares.

  • Apax makes move on Exact

    US private equity firm Apax Partners has made a €730m buyout offer for Exact Holding, the Dutch accounting software company.

  • Santander Consumer Bank adds Finnish deal to pipeline

    Santander Consumer Bank Finland has announced Kimi 3, a new Finnish auto ABS, which it is considering selling down to class C for the first time.

  • Kazakh CAC adoption heralds new era for sovereign debt restructuring

    Kazakhstan returned to the international bond markets after a 14 year absence this week, becoming the first sovereign to adopt new collective action clauses in its documentation. The deal was well received but whether the new CAC clauses helped is unclear

  • Destination Africa: investors prepare for capital markets boom

    Global investors are looking at southern Africa as the outlook for the region’s economic growth is revised upwards

  • Romania’s four banks for long euro bond revealed

    Romania is planning to issue a long euro benchmark and has picked four banks for the deal.

  • Goldman sukuk underperforms as financials falter

    Recent Middle East financial bond issues have had mixed fortunes in the secondary market, but Goldman Sachs’s debut sukuk has notably underperformed since its mid-September pricing – with some investors and bankers away from the deal suggesting that this resulted both from exaggerated orders and from a persistent uneasiness the market has with borrowers it considers "un-Islamic”.

  • Senior demand in good health as CS prints another floater

    Credit Suisse was the only issuer in the European FIG market on Thursday with its fourth benchmark senior since August, bringing in healthy demand to print with a slight new issue premium.

  • Lukoil approaches banks for possible PXF deal

    Private sector Russian oil company Lukoil has requested proposals from European banks on a possible pre-export finance deal, said bankers.

  • MOL shrinks to $169m as macro factors hit IPO

    Southeast Asia’s largest e-payment firm, MOL Global, has priced its $168.75m Nasdaq IPO at the bottom of the price range, in a deal that was slashed in size after a poor macro backdrop sent investors into a spin.

  • Adif AV seeks new syndicated loan, plans second bond issue

    State owned Spanish high speed rail operator Adif Alta Velocidad is seeking a new syndicated loan to replace bilateral loans agreed during the euro crisis. The company is also planning to issue a bond before the end of the year.

  • RBC turns to Europe after US success

    Buoyed by progress in US corporate finance where it has become a top ten player for the first time, RBC is building its European business as well, writes David Rothnie

  • Indonesia's Pelindo, Delta Dunia head into general

    Pelabuhan Indonesia II’s $1bn loan opened into general syndication on October 3. The loan was a long time coming, having been around since May as the borrower awaited regulatory approvals.

  • Korean Reinsurance on road for DCM debut

    Korean Reinsurance (Korean Re), the world's ninth largest reinsurer, started meeting investors for a proposed US dollar subordinated capital offering on October 6. If it goes ahead with a deal the borrower will become only the second Asian insurer to issue sub debt offshore.

  • WH Group makes strong return to loans market with $1.5bn refi

    Chinese pork producer WH Group has had an eventful year. In July it finally managed a successful debut on the Hong Kong Stock Exchange after two abortive attempts. Now it is back in the capital markets, with a $1.5bn refinancing for a controversial loan it raised last year for its acquisition of Smithfield. Fortunately for the borrower, the new deal looks like it will go without a hitch, writes Shruti Chaturvedi.

  • Bangkok Airways lifts off for $527m listing

    Bangkok Airways Public Company kicked off its Bt16.9bn ($527m) IPO on Monday, October 6, on a day when the Stock Exchange of Thailand Index dropped by almost 2%.

  • Asean corporates get ready for 2015 dollar debt comeback

    Domestic markets flush with liquidity have meant that southeast Asian companies have been largely absent from the G3 bond markets. But with local interest rates starting to move up in preparation for a US rate hike, southeast Asian names are primed for a 2015 international comeback, writes Rev Hui.

  • Equities and bonds deliver Asia IB revenue revival

    Record volumes of bonds and equities globally have boosted Asia Pacific investment banking revenues close to their record. The first three quarters of the year generated a total of $10.5bn, a double digit increase on the same period last year, according to Dealogic.

  • Pertamina mulls raising size of $1bn five year facility

    Indonesian power company Pertamina, which sent out a request for proposals for a $1bn loan in September, is considering increasing the size of its borrowing by at least $500m after it received a strong response from banks.

  • STP hunts for $800m loan for 3,500 Axiata towers

    Indonesian telecom tower operator Solusi Tunas Pratama is considering a loan of over $800m for its Rph5.6tr ($460.5m) purchase of 3,500 towers from Axiata Group subsidiary XL, as well as for refinancing existing debt.

  • EBA warns issuers on AT1 complexity

    The European Banking Authority fired a warning shot at issuers of alternative tier one capital, making plain its distaste for structural features that could be construed as overly complex or non-standard. Dynamic triggers, regulatory calls and anything that mitigates against shareholder dilution are among the features in its sights.

  • K-water makes long awaited return with $300m bond

    State owned Korea Water Resources Corporation (K-water) has returned to the offshore debt market for the first time in nine years, pricing a $300m bond on October 8.

  • Office views and CEO spies

    Gone are the days of mere 15-floor office blocks in Hong Kong. Now, when I make my way down to the city, I dare not strain my neck looking up at all the cloud-level pillars. Fortunately, from my usual perch on The Peak I don’t have my view obstructed by what are basically huge battery farms for bankers.

  • Sinobiz fires up $1.5bn loan with 11 banks

    Sinobiz Holdings has mandated a group of 11 banks to lead its latest $1.5bn commodity prepayment financing and refinancing loan.

  • All covered as Blue Bird makes stop for $307m Indo IPO

    Indonesian taxi operator Blue Bird Group opened books on October 3 for a Rph3.7tr ($307m) IPO. The deal, which was covered within two hours of launch, will become the largest listing in the country this year.

  • India finalises rules for real estate investment trusts

    The Securities and Exchange Board of India (Sebi) has published the final regulations for newly approved real estate investment trusts (Reits) and infrastructure investment trusts (InvITs).

  • Kimree kicks off investor education for $125m US listing

    Chinese e-cigarette maker Kimree, which is looking to list on Nasdaq with a $125m-plus IPO, started pre-marketing its deal to investors on Wednesday, October 8.

  • Credit Suisse hires for EM loan syndication

    Credit Suisse has hired an experienced banker to its loan syndication business in London.

  • Korean bank to win race for first Seoul-issued RMB bond

    A domestic South Korean name is now expected to be the first credit to bring a locally issued and listed RMB bond in Seoul, several sources have told GlobalRMB. Two of the sources suggested that KB Kookmin Bank was the most likely candidate and that a deal could come within the next week.

  • Structured chief heads to Mitsubishi

    Mitsubishi UFJ Financial Group has hired a well-known credit structurer to play a senior role in its structured products business

  • Total Derivatives: CNY bid on IMF upgrade

    CNY swaps have been better bid as the International Monetary Fund's upgraded economic outlook for China has more than offset the post-holiday improvement in liquidity conditions. Hong Kong dollar swaps also picked up a bid as the market responded to the Occupy Central pro-democracy protests, writes Deirdre Yeung of Total Derivatives.

  • Don't scoff at talk of AT1s repricing HY

    Anyone playing down the chances of a repricing of Asian high yield bonds amid the upcoming flood of Chinese additional tier one capital (AT1) transactions will be in for a shock if a recent investor survey turns out to be true. And with expectations high that AT1s will be included in global indices, the problem cannot be overlooked.

  • SPT Energy nets $104m from 8

    Integrated oilfield services provider SPT Energy has issued allocations for its three year facility, increasing the size of the borrowing to $104m from the launch size of $100m as Taiwanese lenders piled in.

  • REC's $170m loan closes with 15

    Indian company Rural Electrification Corp has closed syndication of the $170m greenshoe of its larger $230m five year fundraising, with 14 lenders coming on board during general.

  • PacRub exchange acceptance below a third

    Colombian private sector oil company Pacific Rubiales said it had met its target for an exchange offer even though less than a third of bondholders participated.

  • BTMU, Mizuho, SMBC tipped for Indian Oil C$600m mandate

    Indian Oil Corp is understood to have mandated three Japanese megabanks for a C$600m ($541m) loan. The state owned refiner is thought to be seeking the money for the acquisition of a stake in a liquefied natural gas port in Canada.

  • BNP Paribas EUR750m 2.625% Oct 27 T2, USD1bn 4.25% Oct 24 T2

  • Crédit Agricole Assurances debuts with caution in nervous subs market

    Crédit Agricole’s wholly owned insurance subsidiary Crédit Agricole Assurances made its subordinated debt debut this week, taking care not to cadge too much from investors who have been spooked by recent underperformance in financials sub debt.

  • Crédit Agricole Assurances EUR750m 4.5% Perp NC11

  • BNPP also taps US with first dollar tier two in a decade

    BNP Paribas took advantage of improving sentiment and strong demand from US investors to print its first dollar tier two trade since 2005, while also issuing in euros (see separate story).

  • BlueBay looks to launch Coco focused fund as AT1 bulge nears

    With a flood of additional tier one issuance on the way and an investor base some say is too small to take it all down, BlueBay Asset Management is looking to take advantage of pricing inefficiencies in the volatile market with a new fund that will focus on new style contingent convertible bank debt, including AT1 and tier two Cocos.

  • Helvetia rushes to reopen landmark hybrid

    Strong investor demand brought Helvetia back for a tap of its innovative Swiss franc hybrid on Wednesday – less than a week after the original issue.

  • BNPP rides crest of rally to sell tier two

    BNP Paribas on Monday leaped through a narrow window and avoided a souring in sentiment later in the week to sell its second tier two deal in euros this year.

  • Abbey National Treasury GBP500m 3.875% Oct 29

  • Credit Suisse EUR1bn FRN Oct 19

  • Discover draws on better card delinquency

    With delinquency rates falling, Discover Bank plans to launch a $500m credit card ABS deal this week.

  • Prime auto deals pumped up

    Three prime auto ABS issuers increased deals this week to take advantage of strong demand. Spreads have tightened in the asset class since widening along with the subprime auto sector in August, when regulators and the US Department of Justice announced weaker lending standards at the lower end of the credit spectrum.

  • Market trades yard of euro topside options

    Market participants have been trading very short-dated options on the euro against the dollar in a bid to hedge other cash positions that they still have on the currency pair.

  • Onex hires for growing European CLO market

    Onex Credit Partners, the collateralised loan obligation manager arm of Canada’s Onex Corporation, is making a push into the expanding European CLO market with a new hire, the firm announced today. The move comes amid a growing trend of US managers trying to access European investors.

  • Unibail hits price target for eight year euros

    Unibail-Rodamco, the French property company, achieved tight pricing on its latest eight year euro issue thanks to strong demand from across continental Europe.

  • GM Financial emerges with first post-crisis euros

    GM Financial, the finance arm of General Motors, finally emerged with its long-awaited euro debut issue on Wednesday.

  • Bertelsmann bags €500m 10 year

    Bertelsmann, the German media group, made a rare return to the bond market on Wednesday with a new 10 year benchmark.

  • Austrian bid supports demand for Voestalpine euros

    Strong domestic support allowed unrated Austrian metals group Voestalpine to increase its seven year euro market return to €400m on Wednesday despite substantial price tightening.

  • Markit: Fundamentals Widen EM spreads

    We remarked last week that volatility had returned to the credit markets, and the spread oscillations this week suggests the trend is set to continue.

  • Exotix continues hiring push

    Exotix Partners has made its second new hire in two weeks, appointing Anthea Alexander to lead its coverage of South African consumer stocks as the emerging markets specialist merchant bank increases its focus on sub-Saharan Africa.

  • New role for Dean at Barclays

    Sam Dean, who took a sabbatical from his role as Barclays’ head of global equity capital markets in December, is to return to the bank in a new role.

  • Melbourne Airport adds to Aussie infra euro supply

    Melbourne Airport returned to the euro market on Wednesday with a €350m 10 year that attracted more than five times oversubscription.

  • United Internet loan to close oversubscribed next week

    The syndication of €1.38bn of loans for German internet service provider United Internet is expected to close oversubscribed next week.

  • Secondary illiquidity bites as Napier Park prices fifth Regatta CLO

    Napier Park Global Capital has priced the fifth collateralised loan obligation in its Regatta series, with the significantly wider pricing levels of the triple-A tranche showing the effect of poor secondary liquidity in senior CLO paper on primary supply.

  • Fiat mandates Italian auto deal

    Fiat and Credit Agricole joint venture FGA Capital has mandated banks for A-BEST 10, a new Italian auto loan ABS.

  • Penarth set to price tomorrow

    Lloyds Bank is set to price its Penarth 2014-2 UK credit cards deal on Thursday, after going subject in line with initial price thoughts of 37bp earlier on Wednesday.

  • Hedge funds sell volatility on iTraxx roll

    Hedge funds have been selling volatility in the old series of iTraxx Main and Crossover, mostly with November and December expiries, after the iTraxx indices roll from series 21 to 22 that took place on Monday.

  • Hibernia returns with acquisition funding cap hike

    Hibernia REIT, an Irish property investment firm, is set to raise around €300m to buy new properties through a firm placing and placing and open offer launched on Monday evening.

  • Jimmy Choo covered on shoe float

    Luxury accessories maker Jimmy Choo is covered on its IPO, which could value it at up to £700m, only two days into bookbuilding.

  • Two deals in one day, as high yield awakes from slumber

    Two issuers completed intraday bonds on Tuesday, raising hopes of renewed activity in the primary high yield market, following a week in which not a single new deal was priced.

  • SG loans syndicate MD retires

    Annie McMahon has retired from her job as managing director in structured finance Emea loan syndication at Société Générale.

  • BlueBay closes in on launch of new style Coco focused fund

    With a flood of additional tier one issuance on the way and an investor base some say is too small to take it all down, BlueBay Asset Management is looking to take advantage of pricing inefficiencies in the volatile market with a new fund that will focus on new style contingent convertible bank debt, including AT1 and tier two Cocos.

  • Deutsche CEEMEA trader to depart

    Josh Silver, head of CEEMEA special situations and distressed debt trading at Deutsche Bank is leaving the firm to start his own distressed debt investment fund.

  • Schaeffler sets price guidance on €1.8bn term loan 'B'

    German ball bearing producer Schaeffler has set price guidance on its €1.8bn-equivalent term loan ‘B’.

  • Italian telecoms firm launches IPO as peer cancels

    Italian telecoms firm Rai Way launched a €400m IPO on Wednesday, the same morning that internet company Italiaonline pulled its deal.

  • Turkey bonds fall on clashes but supply still expected

    Escalating tensions in Turkey overnight led to a softening in bond prices on Wednesday, adding to a month long sell-off in the country. But bankers aren't expecting primary supply to be affected, with financial issuers likely to be opportunistic.

  • StanChart loans head retires

    Standard Chartered Bank's director of loan syndications in London, Pamela Green, has retired. The vacant position will be filled internally, the bank said.

  • Nomura to lose head of rates structuring, hires in equity

    The head of rates and solutions structuring at Nomura in London is set to leave the firm after being put "at risk".

  • Here at last! Bank of China hits road for jumbo AT1

    The much talked about Bank of China (BoC) additional tier one capital (AT1) transaction is finally taking shape, with Asian and European roadshows scheduled to begin on October 10, according to bankers on the trade.

  • StanChart bucks CEEMEA loans trend

    As syndicated loan volumes in central and eastern Europe dwindled in the first nine months of the year, hit by conflict in Ukraine and sanctions on Russian banks and energy companies, Standard Chartered has emerged at the top of the bookrunner league tables.

  • Investors dig in to FIG deals despite volatility

    October is usually a jittery month for markets, but with Germany hovering on the edge of recession, the International Monetary Fund warning of the weakness of the global recovery and the Asset Quality Review approaching, the signs are that it could be more volatile than ever.

  • EIB and KfW kick off green dollar curves

    The evolution of the green bond market took another big step forward this week as two of Europe’s biggest borrowers launched dollar benchmarks in green format for the first time — and another European agency prepared a second green bond in euros.

  • K-water sets final guidance for $300m return

    State-owned Korea Water Resources Corporation has returned to the offshore market following a nine year absence, setting final guidance at 110bp over Treasuries for the 3.5 year bond.

  • High yield makes tentative return

    The high yield new issues market switched back on yesterday, with two deals pricing in quick succession following a week without any supply.

  • Correction: BAML makes cut in Russia

    Alexander Kiselevich, a managing director in corporate banking in Moscow, left Bank of America Merrill Lynch at the end of September.

  • Kazakh comeback

    Emerging markets bankers are this week hailing the return of Kazakhstan to the bond market, as the country printed its first deal for 14 years, a $2.5bn 10 and 30 year note priced from a $10bn book. But as well as sating demand the that had been building for nearly a decade, the country also broken new ground, issuing the first deal incorporating ICMA’s full set of recommendations for a collective action clause.

  • Pertamina loan size likely to increase

    Indonesian power company Pertamina, which sent out a request for proposals for a $1bn loan in September, could increase the size of its borrowing by $500m or more after it received a strong response from banks.

  • Oil India issues RFP for $125m loan

    State-owned Oil India has issued a request for proposals for a $125m five year loan that it plans to use to refinance existing debt.

  • KEB prices tight to Hana’s tier two

    Korea Exchange Bank (KEB) priced the third US dollar tier two bond from the country on October 7, coming in only slightly wider than peer Hana Bank.

  • Taiwan securities firms plan Formosa double debut

    Two Taiwan local securities firms, Yuanta Securities and KGI Securities, are planning to issue their debut Formosa bonds in the next few weeks, two DCM bankers have told GlobalRMB. They would be the first renminbi-denominated bonds from securities houses in Taiwan.

  • Tat mulls IPO of China crane business

    Singapore’s Tat Hong, which supplies cranes and heavy equipment, is considering spinning off its tower crane rental business in China via an IPO.

  • Times Property overcomes real estate sell-off with dim sum tap

    Guangdong based Times Property Holdings completed its fourth appearance in the debt market this year by tapping its existing offshore renminbi bond for an extra Rmb600m ($98m) on October 7. But the trade proved to be tougher than expected as a result of a sell-off in Chinese property bonds.

  • FWD nets $141m via HKT sell-down in turbulent conditions

    FWD Life Insurance Company has made HK$1.09bn ($141m) by selling its entire stake in HKT Trust and HKT Limited, in a block trade that saw strong demand despite turbulent market conditions overnight.

  • CNH liquidity measures needed ahead of Stock Connect

    Net dim sum primary issuance had its third strongest month this year in September, but China macro data woes and RMB liquidity constraints risk spoiling the Stock Connect launch party later this month.

  • Chow for now: HSBC loses senior leveraged loans banker

    Senior loans banker Aaron Chow has left HSBC after six years, GlobalCapital Asia understands.

  • InRetail goes tight as LatAm momentum strengthens

    Peruvian retail group InRetail Consumer sold a heavily oversubscribed $300m seven year non-call four bond on Tuesday as LatAm new issues once again begin to resemble those deals sold during the bull market of midsummer.

  • Growth and opportunities

    By Bjarni Benediktsson, Minister of Finance and Economic Affairs

  • Westlake's second subprime deal expected to come cheaper

    Westlake Services’ $400m subprime auto ABS deal is expected to price between 50bp and 55bp over EDSF for the deal’s triple-A tranche in accordance with guidance released on Tuesday.

  • Iceland enters new era

    By any stretch of the imagination, Iceland’s economic recovery has been impressive. The big challenge now will be to make sure this post-crisis era of growth is sustainable.

  • Explicit PACE consent could mitigate potential risk to CMBS

    CMBS documentation should require the explicit consent of mortgage lenders for commercial properties to take on property-assessed clean energy (PACE) financing for energy efficiency improvements, said Moody’s this week. The ratings agency argued that commercial PACE financing - which has made its way into one securitization to date - can increase leverage and risk in commercial real estate loans.

  • Guðmundsson’s next challenge: securing recovery

    Már Guðmundsson was appointed governor of Sedlabanki Islands (Iceland’s central bank) from August 2009, and was recently invited to serve a second five year term at the helm. In this interview with GlobalCapital, Guðmundsson shares his views on the challenges that are likely to arise over that period.

  • NBAD's global push can work but needs deep pockets

    Raising one’s game from regional bank to global is a risky strategy at the best of times, so for National Bank of Abu Dhabi to attempt the move when other firms are retrenching and streamlining their businesses is bound to draw some scepticism.

  • Where will all the risk-takers come from?

    When the G20 finalises the next round of bank capital requirements at its Brisbane meeting in November, few things are certain. But regulators are united in a push to keep whatever new loss-bearing liabilities out of the hands of retail investors – raising the question of who, if anyone, should be on the hook for bank failure.

  • Telefónica’s 15 year euros draws a crowd

    Telefónica attracted more than €3.3bn of demand for its longest dated senior euro deal in more than a decade on Tuesday.

  • THEAM targets €/$ put butterfly in bullish greenback bet

    THEAM, a €40bn asset management division of BNP Paribas, plans to buy a nine-month put butterfly on the euro against the dollar to express a bullish dollar position in the coming weeks.

  • Euronext offers Dutch and Belgian equity options to US investors

    Euronext plans to start offering Dutch and Belgian equity options to eligible US investors following notice from the US Securities and Exchange Commission of new class no-action relief for foreign options markets.

  • Voestalpine looks to mid-100s for euro return

    Voestalpine, the Austrian metals group, held an investor call on Tuesday ahead of a planned sub-benchmark euro market return.

  • Primary ABS picks up pace as ABN announces

    The primary ABS market picked up momentum sharply on Tuesday as Dutch RMBS Saecure 15 was priced and ABN’s Dolphin 2014-3 was announced, while initial price thoughts on Lloyds’ UK credit card deal, Penarth, were announced. Finally, in the CMBS market, Westfield Stratford City Finance was priced.

  • Standard Life calls on Nationwide veteran to head new infrastructure debt team

    Standard Life Investments has tapped Nationwide’s head of project finance, Jeremy Allcock, to head up its new infrastructure debt team.

  • Citi adds RMBS distribution head

    Citi has added the new role of head of RMBS distribution to its mortgage and credit structuring business.

  • CMBS servicer workloads increase, says Fitch

    About half of commercial loan assets backing CMBS that were due to mature this year and last are still awaiting resolution, according to Fitch’s third quarter EMEA commercial mortgage market report. As a consequence the workload of servicers has increased considerably, said the agency in the report published on Monday.

  • British business communications firm completes AIM IPO

    Gamma Communications, a British company that provides communication equipment to businesses, completed an AIM IPO on Tuesday that valued it at £165m.

  • Unitymedia kindles hope of renewed high yield issuance

    Unitymedia Kabel BW, the German cable operator, has launched €725m-equivalent of senior notes to refinance outstanding debt. It is the first high yield transaction since last Tuesday, as issuers have stayed away from a tumultuous primary and secondary market.

  • Styrolution goes again with term loan 'B'

    German styrenics supplier Styrolution held a London bank meeting on Tuesday for a €1.05bn-equivalent five year term loan ‘B’, which marks the company’s return to the market after pulling a larger facility during summer.

  • Vitol's revolver refinancing grows from $5.5bn to $7.5bn

    The Swiss-headquartered oil trader Vitol has signed $7.5bn of revolving credit facilities to refinance $7bn of loans signed in October 2013 and for general corporate purposes. The syndication was launched at $5.5bn and brought in some $8bn of orders.

  • CrédAg’s insurance unit debuts with caution in sub market

    Crédit Agricole’s wholly owned insurance subsidiary Crédit Agricole Assurances is set to price its inaugural subordinated bond — and the first subordinated debt from a new market entrant since the recent selloff — following big demand from BNP Paribas’ dual tranche tier two on Monday.

  • Abbey returns to sterling in senior after long absence

    Abbey National returned to the sterling market in senior for the first time since 2010, printing a long-dated deal that was snapped up by investors amid a dearth of senior supply.

  • Kazakhstan meets high expectations with $10bn bond book, breaks new ground with ICMA CAC

    The Kazakhstan sovereign printed its $2.5bn dual tranche bond on Monday, finally sating demand that had built for the country’s bonds over the last decade and re-pricing the curves of its quasi-sovereign borrowers. Leads built an $11bn book for the bond despite pricing inside emerging markets behemoth Brazil and being the first ever sovereign to adopt ICMA’s full range of recommendations for a collective action clause.

  • Russian banks plan hard currency domestic bonds

    Russian banks are coming under increasing pressure because of liquidity constraints and with the international markets all but closed, several have announced plans to issue foreign denominated domestic bonds.

  • SocGen partners with local French authorities to process derivs

    A union of French local authorities has signed up to Société Générale Securities Services and Newedge to process its derivative transactions.

  • Banks await terms of Mol club deal

    Hungarian oil and gas firm Mol has told banks it has received more than enough interest in its proposed $500m-$1bn loan to proceed with the deal, after the deadline for submissions expired last week.

  • Loans round-up: Gaw Capital, GDH, Rabobank hire

    Private equity firm Gaw Capital Partners has allocated the $526m three year loan it took to fund its acquisition of Pacific Century Place in Beijing.

  • Walt Disney to help Paris park subsidiary with €1bn recapitalisation

    Euro Disney, the company that owns French theme park Disneyland Paris, is set to launch a €1bn recapitalisation supported by the Walt Disney Company, the parent that could assume ownership of the whole company if the deal fails.

  • Turkey to lead next wave of dollar sukuk

    Any lull in the international sukuk market after September’s record monthly issuance is set to be brief, say bankers, with the Republic of Turkey looking likely to be at the front of the next flurry of deals.

  • Cabei debuts in Formosa market with Rmb500m bond

    The Central American Bank for Economic Integration (Cabei) priced its second offshore RMB (CNH) bond on Monday, October 6, opting this time for a Rmb500m ($81m) debut in Taiwan's Formosa market.

  • Don't draw CAC conclusions from Kazakhstan blowout

    Kazakhstan this week became the first country to fully adopt ICMA’s recommendations for a collection action clause in its sovereign bond issue. But the trade was such a blowout that it cannot be used to draw conclusions about the costs of doing so — other borrowers may have to pay up to include the clause.

  • Kazakhstan illustrates the impact of a sovereign curve

    Investors have been waiting for Kazakhstan’s sovereign bond for nearly a decade and its arrival this week left no-one in doubt about demand for the issue. But its re-pricing of the curves of Kazakh borrowers is also a reminder to the emerging markets of the importance of sovereigns themselves coming to market and the need for strong lead management when they do.

  • Medical Reit preps for $200m placement

    Global Medical Reit, a subsidiary of Hong Kong-listed Heng Fai Enterprises, has started roadshows for a $200m placement of shares to fund acquisitions that will eventually help it upgrade to the Nasdaq.

  • Vital Mobile starts dialling for HK IPO

    Vital Mobile Holdings has taken the first step to listing on the Hong Kong Stock Exchange, filing a preliminary IPO prospectus on October 6.

  • Times Property on tap for more dim sum

    Several enquiries from yield hungry investors have prompted Times Property Holdings to tap its existing Rmb900m ($146m) dim sum bond on October 7.

  • Kimree set to pre-market $125m US IPO

    Chinese e-cigarette maker Kimree, which is looking to list on the Nasdaq with a $125m-plus IPO, is set to start pre-marketing its deal to investors from Wednesday, October 8.

  • KEB opens books for $300m tier twos

    Sentiment surrounding Korean bank capital transactions is high following Hana Bank’s sucessful Basel III tier two last week. Trying to ride that wave of optimism is Korea Exchange Bank (KEB), which opened books to its own tier two bond on October 7.

  • HK investors positive but cautious on China A-shares, says BlackRock survey

    Hong Kong investors are not expecting the launch of the Shanghai-Hong Kong Stock Connect to provide them with sparkling gains compared to local stocks, as concerns regarding Chinese property markets and local government debt weigh on the prospect of increased exposure.

  • BlackRock hopes for more bucks from their Bang

    BlackRock has appointed Edward Bang as its head of multi-asset strategies for Asia Pacific.

  • Pemex pounces as risk-on returns to LatAm

    A sharp rally in Brazilian debt led a return to risk-on sentiment among investors in LatAm after the presidential candidate seen as the most market-friendly made it to the second round against incumbent Dilma Rousseff in the first round of Brazil’s presidential elections on Sunday.

  • Pelindo $1bn sails into general

    Pelabuhan Indonesia II’s $1bn loan that had been in gestation since May, opened into general syndication on Friday.

  • Peru’s InRetail eyes high 5% for seven year

    Peruvian retail group InRetail Consumer may price a seven year non-call four bond as soon as Tuesday after completing a roadshow on Monday with bookrunners Citi and Credit Suisse.

  • Japan to the rescue as triple-A and equity struggle hits CLOs

    Japanese investors are helping CLO managers price their deals as the end of the year approaches, filling a gap left by US triple-A investors that don’t have room left for new deals. Amid widening triple-A spreads and secondary market volatility, equity returns are suffering — but widening spreads in the underlying leveraged loan market may help offset that decline.

  • CDS notional continues uptrend for fifth consecutive week

    Overall credit default swap notional reported to swap data repositories last week increased by 17% from the previous week, according to data from the International Swaps and Derivatives Association. This follows four weeks of a consistent uptick in CDS notional, with a combined increase of 102%.

  • Securitization data bulletin: September

    In this month's securitization data bulletin, we look at a milestone 10th issue in the emerging single family rental market as well as efforts to revive the moribund private label RMBS asset class.

  • Exceed out with ETFs, mutual funds Q1 2015

    New York-based boutique financial services firm Exceed Investment is preparing a first quarter 2015 launch of exchange-traded and mutual funds on its latest range of beta indices, which are based on structured notes that track the S&P 500.

  • TriOptima, SwapClear complete maiden rand compression cycle

    Derivatives market participants have eliminated $284.3bn in notional principal in the first compression cycle for cleared South African rand interest rate swaps using TriOpima’s triReduce and LCH.Clearnet’s SwapClear services.

  • Merck & Co wins plaudits for €2.5bn issue, launches dollar buyback

    Merck & Co, the US pharmaceutical company, launched its first bond in euros for seven years today, just days after its €1.5bn deal from 2007 had matured. With markets recovering after a queasy time last week, the €2.5bn issue was widely seen as a success by rival bankers.

  • Don’t expect rush to follow Lux sukuk

    Luxembourg’s debut in the sukuk market last week was a great advert for the asset class and rounded off a run of ground-breaking deals from new borrowers. But despite bankers reporting interest from other European sovereigns in the aftermath – and suggestions the Grand Duchy itself will return next year – it is unlikely that its western neighbours will follow soon.

  • Lloyds announces new credit card trade

    Lloyds Bank has mandated BAML and its own primary markets operation for Penarth 2014-2, a new UK credit card ABS.

  • Jimmy Choo kicks off bookbuilding on London IPO

    Jimmy Choo began bookbuilding on Monday for an IPO that could value the British luxury shoe and handbag maker at up to £702m.

  • Bucher promoted to head of syndicated loans at LBBW

    Landesbank Baden-Württemberg has announced that Rainer Bucher will be its new head of syndicated loans from January 1, 2015.

  • Covenant hires new PM as second deal nears

    Covenant Credit Partners, which is about to price its second collateralised loan obligation, has hired a new portfolio manager to join its management team.

  • Westfield Stratford pricing shades inside previous attempt

    The relaunch of Westfield’s Strat 2014 CMBS, which finances the Westfield Stratford shopping centre, looks set to price inside the guidance offered when the deal was first marketed.

  • iTraxx outperforms equity after roll to new series

    Credit analysts are recommending investors take profit on relative value trades playing the iTraxx series 21 index against equity markets, following the roll to series 22 on Monday. The roll has triggered significant outperformance of iTraxx indices relative to equity markets.

  • Three French consumer ABS dominate the week

    Three new French consumer ABS deals should be priced this week, all from regular visitors to the European market.

  • ISDA credit definition protocol succeeds, despite initial uncertainty

    A protocol automatically upgrading credit default swaps from old definitions to an updated 2014 set came into force on Monday, after more than 1,400 market participants signed up by the deadline of September 17.

  • Deutsche Wohnen agrees €1.36bn of loans with two relationship banks

    Deutsche Wohnen, the German residential property company, has agreed loans totalling €1.36bn with two German banks, completing a €1.76bn refinancing process that began with its €400m seven year convertible bond issue at the beginning of September.

  • High yield secondaries stabilise, giving hope of fresh deals

    High yield bond prices steadied in the secondary market today, after more than a week of deals both old and new trading down. Some bonds had underperformed because of the issuers' poor financial results, others for reasons harder to identify.

  • Norway launches privatisation IPO of Entra property vehicle

    The Norwegian state has launched a Nkr6bn ($950m) IPO of Entra on Monday, in which most of the commercial property firm will be privatised.

  • Aegon to test RMBS demand

    Dutch lender Aegon Hypotheken has opened books and released initial price thoughts for Saecure 15, a prime RMBS that is backed by a high proportion of guaranteed mortgage loans. This will be the first RMBS since details of the European Central Bank’s ABS purchase programme were announced, and could prove a litmus test of prospective demand.

  • Schaeffler continues refinancing project with €1.8bn term loan 'B'

    German ball bearing producer Schaeffler has launched a €1.8bn-equivalent six year term loan ‘B’ to refinance debt raised earlier this year.

  • Tunisia prints ¥50bn Samurai, adds juice over Turkey

    The Central Bank of Tunisia printed a ¥50bn 10 year bond on Wednesday from a ¥110bn book. The note was priced at par with a coupon of 1.61% to give a spread of 90bp over swaps — a much wider spread than Turkey paid for its own Japan Bank for International Cooperation-backed deal in September.

  • BNPP jumps on Monday rally for €750m tier two

    After a volatile few weeks, BNP Paribas took advantage of improved sentiment on Monday morning to launch a benchmark size tier two capital issue at what bankers away from the deal said was an attractive initial level for investors.

  • Xiaomi nets commitments from seven

    Mobile phone maker Xiaomi’s $1bn dual tranche loan has netted commitments from seven lenders that made it in time for the loan’s early bird deadline in general. These banks will earn an early bird fee of 15bp for getting commitments in by October 6.

  • At last! Kazakhstan gives bond guidance, set to absorb Russian demand

    Kazakhstan released price guidance for 10 and 30 year bonds on Monday morning and expects to print the $2bn deal, eagerly anticipated for nearly a decade, later today. Bankers are expecting the absence of Russia from international bond markets this year to intensify demand.

  • Bangkok Airways departs for $527m IPO

    Bangkok Airways Public Company took off for its Bt16.9bn ($527m) IPO on Monday, October 6, on a day that saw the Stock Exchange of Thailand Index dropped by 1.3%.

  • Anything but early

    London transport, it’s always a pleasure. But when you’re on your way to meet a senior debt banker over from the United Arab Emirates, seeing your journey time triple because of the unannounced closure of a tube line can be the occasion for a fantastic mix of stress and embarrassment.

  • Swiss hybrids ‘step out of infancy’ as institutions pour into Helvetia

    Issuers of subordinated debt are likely to benefit from a wider range of investors in Swiss francs in the future. A Sfr525m deal from insurer Helvetia drew unprecedented institutional demand on Thursday, despite volatile trading conditions last week.

  • Canvest Environmental Protection and Nirvana Asia file for HK IPO

    The waste-to-energy (WTE) provider Canvest Environmental Protection Group looks to list on the Hong Kong Stock Exchange and has filed a preliminary prospectus.

  • Investors see fair value for Chinese AT1s at 7.16%: MS

    Investors are pricing in fair value for additional tier one capital (AT1) preference shares for China’s big four banks at an average of 7.16%, according to a Morgan Stanley survey.

  • THHE mulls $138m rights issue as Bumi Armada wraps up

    Malaysia’s TH Heavy Engineering is looking to raise up to MR450m ($138.1m) from a rights issue, with timing for the deal still up in the air as the company waits for a good window to launch the trade.

  • KEB sets sight on tier twos; Woori picks six for dollar bond

    Korea Exchange Bank (KEB) is looking to become the third Korean lender to tap the dollar market with a tier two bond, mandating four banks to handle the transaction.

  • K Wah seals HK$3.85bn club with five

    K Wah International has wrapped up its HK$3.85bn ($497m) financing for a construction project in Hong Kong with a club of five banks.

  • Trinidad Cement defaults on loan, seeks restructuring

    Trinidad Cement, the Caribbean building materials company, which as recently as May roadshowed for an international bond, has halted payments on its loan agreements and therefore missed a debt service payment due on September 30.

  • BAML names Yacenda as HK country executive

    Bank of America Merill Lynch has promoted Richard Yacenda as its new country executive for Hong Kong, replacing Jayanti Bajpai who left for London earlier in the year, according to a memo seen by GlobalCapital Asia.

  • GalaxyCore, M800 connect for HK listings

    Technology companies GalaxyCore and M800 Group are mulling a listing on the Hong Kong Stock Exchange, as the market prepares for a busy rest of the year.

  • Brazil wants to join the RMB club, HK offers help

    Brazil obtained a Rmb190bn ($77.3bn) swap line last year, but since then there has only been one public dim sum bond from an issuer in the country. The solution to boost the local RMB market is to take advantage of the infrastructure that Hong Kong offers, says that city’s government.

  • Trafigura loan closes at $1.73bn as 29 pile in

    Commodities trading company Trafigura has wrapped up its latest fundraising at $1.73bn with an oversubscription for the dual currency loan propelled it well past the launch size of $1.3bn. The deal saw commitments pour in from a total of 29 lenders, including five first time lenders.

  • Korean Re on the road for DCM debut

    The world’s ninth largest reinsurer, Korean Reinsurance (Korean Re), is close to making its debut in the debt capital markets having started meeting investors for a proposed US dollar subordinated capital offering on October 6. If it goes ahead it will become only the secodn Asian insurer to issue sub debt offshore.

  • Natixis GAM hires Chang as head of Taiwan

    Natixis Global Asset Management has appointed Alex Chang as its new head of Taiwan.

  • eHi starts engine for $100m NYSE IPO

    There's no end to Chinese companies seeking US listings, with eHi Car Services looking to raise $100m from an IPO on the New York Stock Exchange.

  • Hong Kong IPOs: between a rock and a hard place

    2014 so far has been a bit of a bumper year for IPOs in Hong Kong, despite the well-publicised loss of Alibaba’s landmark listing to the New York Stock Exchange.

  • Markit: Could credit volatility be back?

    Credit markets are now accustomed to low volatility, but there have been signs over the third-quarter that the climate is changing.

  • Eiffage builds up revolver to €1bn with oversubscribed syndication

    Eiffage, the French construction and concessions company, has signed a €1bn five year revolving credit facility with 16 banks. The deal was 25% oversubscribed.

  • Rabobank makes senior hire in European DCM

    Rabobank has added to its European loan syndications business with a senior hire.

  • Aldermore begins bookbuilding on challenger IPO

    UK challenger bank Aldermore began bookbuilding on its £300m IPO on Friday, a day after peer Virgin launches its own deal.

  • Amvig allocates HK$2.6bn financing

    Cigarette package printer Amvig Holdings has allocated its HK$2.6bn ($335m) refinancing loan, following successful senior and general syndications, during which commitments poured in from nearly two dozen lenders.

  • Paul Hastings hires high yield partner

    Peter Schwartz is joining law firm Paul Hastings as a partner focusing on high yield, having previously been a partner in Milbank’s global securities team.

  • Electrolux closes $3.5bn GE Appliances loan, plans $2.5bn bond

    The syndication of the $3.5bn bridge facility for Electrolux's acquisition of GE Appliances has closed oversubscribed, according to a banker at one of the leads.

  • Delta Dunia weaves $150m loan in general

    Delta Dunia Tekstil has launched its $150m dual tranche loan into general via sole mandated lead arranger and bookrunner Standard Chartered.

  • Updated: WH Group signs up 11 for $1.5bn refi

    Pork producer WH Group has signed a $1.5bn facility that will refinance the outstanding principal on a $4bn acquisition loan it took in 2013. The borrower has been forced to return to the loan market after it failed to raise enough during its IPO earlier this year.

  • Mall operator Atrium opens doors for second bond

    Atrium European Real Estate, an operator of shopping malls in central and eastern Europe, is meeting investors next week for a euro bond.

  • Market shrugs off S&P corporate hybrid ruling

    Standard & Poor’s lowered the regional scale issue ratings on six corporate hybrids in Asia by one notch this week, prompting a slight sell-off in the instruments. While short term volatility is expected, the changes are unlikely to have any impact on future issuance.

  • Signed and sealed: Banks picked for Japan Post divestment

    The Ministry of Japan has picked the banks that will lead the IPO of Japan Post Holdings, in a deal that is expected to be in the region of $15bn-$20bn and add a sizeable chunk to ECM volumes from the country.

  • Beijing Enterprises Water loan rises to $288m

    Beijing Enterprises Water Group has wrapped up its ADB ‘B’ loan at $288m, nearly double the launch size of $120m, as the presence of the supranational and SOE backing proved to be big draws for banks.

  • Blue Bird drives up for largest 2014 Indo listing

    Indonesian taxi operator Blue Bird Group opened books on Friday, October 3 for a Rph3.7tr ($307m) IPO, in a deal which will be the largest listing in the country this year.

  • Direct euro-RMB trading launches, CIPS and offshore lending next

    The People’s Bank of China (PBoC) announced the launch of direct trading of RMB and Euro in the Shanghai interbank market on September 29. Market players are expecting tighter FX spreads, a longer swap curve and broader RMB adoption among European traders. A PBoC official was also on the record stating that the China International Payment System will formally be set up in Shanghai.

  • Apac IB revenue makes a comeback

    Record volumes of bonds and equities globally have boosted Asia Pacific investment banking revenues close to their record high. The first three quarters of the year generated a total of $10.5bn, a double digit increase on the same period last year, according to Dealogic.

  • Indonesia’s STP raising over $800m loan for Axiata towers

    Indonesian telecom tower operator Solusi Tunas Pratama is firming up a more than $800m financing to back its purchase of 3,500 towers for Rph5.6tr ($460.5m) from Axiata Group Berhad subsidiary XL. The proceeds of the fundraising will also be used in part to refinance existing debt.

  • Videocon connects for $114m listing

    Videocon d2h, the satellite television arm of India’s Videocon Group, has filed a preliminary prospectus to list on the country’s stock exchange, in a deal that will raise up to Rp7bn ($114m).

  • London keen to help investors adjust China exposure, says LSEG

    The London Stock Exchange (LSE) is looking to play the role of provider of key European infrastructure for investors looking to increase their China exposure, and for Chinese investors looking to raise funds in Europe in RMB or other currencies.

  • RMB internationalisation brings rich rewards for Chinese banks

    The advance of the RMB as an international trade and investment currency, accompanied by a robust programme of policy initiatives, is boosting Chinese banks' bottom line. The latest evidence of the trend comes from Agricultural Bank of China (ABC) and Industrial and Commercial Bank of China (ICBC), which have released data on their financial performance in the first half of 2014.

  • Kimree lights up $125m Nasdaq IPO

    Chinese e-cigarette maker Kimree has filed for a $125m IPO on the Nasdaq, following in the footsteps of increasing numbers of Asiancompanies that are seeking a US listing.

  • RMB round-up: October 3, 2014

    In this round-up, RMB deposits in Hong Kong stay flat, RMB cross border trade settlement falls 2.3%, Luxembourg RMB deposits rose 5% to Rmb67.2bn ($11bn) in the first half of the year, and Eurogiro launches direct RMB payments to China.

  • Standard Chartered boosts Asean with DCM, loans moves

    Standard Chartered has strengthened its presence in southeast Asia by adding seven new members to its Asean capital markets group, spread across DCM, high yield and loan syndications.

  • India finalises Reits and InvITs rules

    The Securities and Exchange Board of India (Sebi) has published the final regulations for newly approved real estate investment trusts (Reits) and infrastructure investment trusts (InvITs). After years of discussions around the state’s new instruments, a September 26 Sebi publication detailed the final regulations .

  • The last chance saloon

    Paris, December 2015. That is widely seen as the world’s last chance to save itself from devastating climate change. People all over the world can already feel its effects, and the prognosis is terrible. But as Jon Hay reports, the energy and creativity being deployed to fight climate change are immense, and encouraging. Nations must reach a deal — but there is plenty for everyone to be doing in the mean time.

  • What is a green bond? And who should decide?

    Green bond is a label that issuers attach to their deals. No one says who may use it, or on what kind of bond. But participants in the market have already evolved a set of conventions to guide its use. Exactly what counts as green, however, remains undefined. As Jon Hay reports, this is a hot topic of debate that will shape how the market evolves.

  • Bond investors get serious on ESG — and issuers respond

    Five years ago, if you asked a bond fund manager about ethical investing, the answer might have been ‘oh, that’s for the equity people’. You would not hear that today. Market forums on integrating environmental, social and governance analysis into bond investing are proliferating. As Craig McGlashan reports, it is leading to a much richer dialogue between investors and issuers — and to the growth of a whole new bond market.

  • Green bonds hit the big time

    If 2013 was the breakthrough year for green bonds, then 2014 is very much when they are becoming part of the mainstream. Volume is already more than double 2013’s figure, while new borrowers are joining the market and ever more sophisticated approaches are being taken to issuance. Craig McGlashan reports.

  • SSAs take pioneering spirit to new frontiers

    Supranational and agency borrowers have been the most important drivers of the green bond movement. Fostering that market until it reaches maturity is still a big part of their plans, but as Jonathan Breen reports, many issuers are also making big efforts to bring bonds focused on social and educational issues to the mainstream.

  • Public sector borrowers define the environment — and beyond

    Supranational borrowers gave birth to the sustainable bond market, but as it reaches adolescence supras risk being overshadowed by corporate borrowers printing big deals and stealing all the glory.

  • Asiamoney FX Poll 2014: detailed results download

    Asiamoney has published the detailed results of its latest FX poll. Please use the following links to access the related coverage.

  • Bold munis make long green strides, but most are far behind

    Cities and municipalities should be one of the most exciting areas of sustainable and responsible capital markets, but origination bankers have their work cut out if they want any but the most obvious candidates to come forward. Tessa Wilkie reports.

  • SRI bonds — forerunners of the new green generation

    Green bond issuance is accelerating and many market participants believe that 2014 is the year that the asset class will reach maturity. Not if maturity means it has all become plain sailing and uncontroversial. Market participants still have plenty of issues to debate. How much standardisation does the market need? Should the rating agencies move in? How should deals be priced? What is the value of third party analysis? And are issuers really gaining new investors?

  • Economic powerhouse could one day lead in ethical issuance

    The market for bond issues tailored to the specific needs of socially responsible investors has hit its stride since 2013. What had been a niche product for specialist investors suddenly became mainstream. However, banks — so often at the forefront of innovation — have so far been behind the curve. That looks like it’s about to change, as Nathan Collins finds out.

  • Projects and pricing: issuers and investors debate the future of Asian SRI

    Japan has played an important part in green finance, with its retail investors enthusiastic buyers of themed Uridashi bonds. But the institutional investor base there and in the broader Asian region has been slower to build.

  • Corporates take up the green bond baton

    This time last year, no corporate green bonds had been issued, and only one corporate SRI bond. Since then, a dozen companies have issued them, mostly in Europe. The flow of corporate green bonds has resembled a stream rather than a torrent, but as the product edges towards maturity, more and more companies are expected to join the ranks of green bond issuers. Richard Metcalf reports.

  • Roundtable: Well on the road to recovery: what next for Iceland?

    Iceland made a highly successful return to the euro market in July, printing a healthily oversubscribed €750m six year issue which will act as an important benchmark for Icelandic banks and companies looking to access the international capital market.

  • Tasty foreign food remains hard to stomach for local investors

    Japan’s bond investors have long been used to putting up with tight returns in the domestic market, but even they could be forgiven for thinking that things have just become silly now. The returns they can earn in the domestic bond market are, with only a few exceptions, paltry. It is high time they found a new source of returns. Going overseas might be one solution. But for Japanese investors, more than any others, that is easier said than done. Matthew Thomas reports.

  • Sukuk market offers structures to build with

    In world full of giant gaps in infrastructure financing the sukuk market offers an important tool to combat the shortfall. But bringing complex sukuk structures to market will not be easy, and in the cash-rich Middle East the case for infrastructure sukuk is far from clear. Steve Gilmore reports.

  • Old hands, new issuers adapt to evolving capital markets

    Over the last two years a number of debut issuers have appeared in the Samurai market — and many of them have been back within a year, sometimes less. They have been attracted by consistently improving pricing — which, with a benign basis swap, stays attractive when compared to euros or dollars — as well as the usual attractions of a diversified funding base. Indeed, demand has been so fervent that issuers have begun to cap their deals, something that was unheard of as recently as two years ago but which Japanese investors are also learning to tolerate. Pro-Bond, meanwhile, is still chiefly a market we associate with ING, but with other issuers waiting for their moment, we may be on the cusp of critical mass.

  • Bank capital springs into action

    Sukuk, with its emphasis on sharing upside and downside, is perfectly suited to new-style alternative tier one issuance, and the product has found an eager investor base. But there are also big opportunities in covered bonds and ABS, writes Philip Moore.

  • Sukuk market flings open doors to sovereigns

    The year 2014 will be remembered in the sukuk market as a year of sovereign breakthroughs with a variety of non-Islamic issuers having finally unlocked the investor base. But it’s just the tip of the iceberg, writes Francesca Young.

  • Political tensions scupper renminbi issuance

    Japanese issuers have never been among the region’s biggest issuers of renminbi bonds, despite the froth that surrounded the market a few years ago. That looks unlikely to change for now, given rising geopolitical tensions between Japan and China and increasingly attractive funding opportunities in the dollar market. Matthew Thomas reports.

  • Japanese issuers flirt with euros

    Japanese bond issuers have become much more prominent players in the global capital markets over the last five years, resulting in a several-fold rise in their dollar bond issuance. But their euro denominated issuance has not kept pace, and is still prone to long periods of inactivity. The opportunities are there, bankers say — but you have to be ready to work for them. Matt Thomas reports.

  • Asian Islamic finance: getting bigger and better

    Islamic finance has been growing in importance for Asian countries over the last decade, but one country stands out: Malaysia. The country is the biggest Islamic finance market in Asia, and looks likely to keep that title for many years to come. But policymakers across the continent — and, indeed, the world — are starting to wake up to vast opportunities of adding Islamic finance opportunities to their market infrastructure. GlobalCapital sat down with a distinguished panel of market experts to discuss the growing attempts of financial centres to become Islamic finance hubs, and to see what these countries can learn from the experience of Malaysia.

  • SSA Issuer Profiles

  • Sukuk appetite goes global

    The days of sukuk as a niche product are long gone. A growing pool of Islamic investors still makes up the bedrock of the sukuk buyer base, but conventional accounts are getting increasingly comfortable with the product. The conventional bid, however, is not as straightforward as it might seem. Steve Gilmore reports.

  • FIG issuers consolidate role in Japan’s capital markets

    FIG issuers continue to dominate the Samurai landscape – and if anything, their dominance is growing. Japanese investors trust international banks and are happy to buy their paper in order to secure a little more yield in an environment where returns are scarce; banks themselves gain competitive funding and useful diversification. An improvement in the basis swap has meant that banks don’t need to compromise on price in order to achieve a varied order book – but will there come a time when investors say enough is enough and start demanding some yield again?

  • Sovereigns and FIs point way for corporate sukuk

    Corporates tend to follow sovereigns and financial institutions into any new market, and sukuk is no different. With the pioneers having done the work in many regions, Andrew Griffin explores what is left for corporate issuers to do.

  • Losing control in an orderly fashion

    Capital controls have done their job. Now the challenge is to dismantle them without prompting a catastrophic flood of outflows and hurting the economy that they helped so effectively to protect.

  • Companies, banks highlight hidden value, prepare green bonds for climate mission

    A year ago there had been virtually no corporate green bonds. After several eye-catching deals, the product is now on the radar of many treasurers at blue chip companies in a wide range of sectors, and at banks.

  • Cities vie for focal point status

    Dubai wants to win the race to become the go-to financial hub for international Islamic finance but it has many rivals, including London, Luxembourg, Kuala Lumpur and Hong Kong. Philip Moore takes a look at the runners and riders.

  • Sukuk – a global offering

    An array of new entrants into the sukuk market has caught the eye this year, and with names like the United Kingdom, Luxembourg, Hong Kong and South Africa among those entrants it’s clear that the appeal of sukuk is now felt across the world. But can it keep up with the momentum, asks Dan Alderson.

  • Sukuk: why now and what is the potential?

    The sukuk market is close to the point where the instrument can move beyond its niche status to become a major funding tool with widespread use. But as it gains general acceptance worldwide as a substitute for conventional bond issuers and investors, the market risks losing sight of its roots, writes Dan Alderson.

  • Looking away from the magnifying glass

    Japanese banks and corporations are blessed with a domestic bond market that offers among the cheapest funding rates in the world, and one that has only become cheaper as the Bank of Japan has unleashed a torrent of monetary easing. But they realise that a sensible funding strategy — and a long-term future for their businesses — means that turning to the overseas debt markets is becoming ever more necessary. Matthew Thomas reports.

  • Yen grows in stature among SSA borrowers

    With global interest rates as they are, SSAs are finding it difficult to justify raising funds in vanilla yen, impeded by the basis swap back to their core currencies. But there is innovation and demand in the Uridashi markets, and highly rated borrowers find their issues in higher yielding currencies enormously popular with Japanese investors. Meanwhile, sovereigns still find good value and popularity in the Samurai markets.

  • Rebuilding Iceland’s banks: back to basics

    Iceland’s banking sector was on its knees in 2008. But after six years of hard labour, the country’s banks are transformed and beginning to walk with their heads held high and talk about future ownership and access to the international capital markets.

  • Glossary of Islamic financial terms

  • Volatility hits LatAm pipe as InRetail goes alone

    A returning bid for Latin American high yield and low-beta names on Thursday offered some respite to the region’s struggling bond market as new cross-border debt issuance continues to slow.

  • Argentina debt tumbles despite bond payment

    The Argentine government’s claims of dedication to paying its creditors are falling on deaf ears with international investors as the sovereign’s bonds tumbled in the wake of its attempt to make a coupon payment to exchange bondholders due September 30.

  • WinWater credit enhancement falls short, says Kroll

    Premium Point Investment’s securitization conduit WinWater Home Mortgage is marketing its second securitization since its launch in 2013. Credit enhancement was too low for Kroll Bond Ratings Agency to assign preliminary ratings in two of the deal’s tranches.

  • Exeter and Westlake brave the heat of under-fire subprime auto market

    Exeter Finance Corp and Westlake Services have received triple-A ratings for two new subprime auto deals, even as the sector fights a wave of negative sentiment driven by rising delinquencies and increased regulatory oversight.

  • Exeter and Westlake brave the heat of under-fire subprime auto market

    Exeter Finance Corp and Westlake Services have received triple-A ratings for two new subprime auto deals, even as the sector fights a wave of negative sentiment driven by rising delinquencies and increased regulatory oversight.

  • Covered bond issuers get great traction

    Four issuers launched covered bonds from Germany, Sweden, Norway and Austria this week. The transactions were all well subscribed and priced tightly but the greatest degree of price tension was seen in deals that are expected to be eligible for the European Central Bank’s purchase programme.

  • NBAD widens wholesale banking horizons with Canary Wharf move

    National Bank of Abu Dhabi will underscore its commitment to its wholesale banking business by splitting the UK part of its operations from its private banking arm and moving as many as 100 staff to Canary Wharf.

  • Austria EUR4bn 0.25% Oct 19

  • Naftogaz farce more than a near miss

    Naftogaz did itself few favours this week with its farcical approach to repaying holders of its $1.6bn Eurobond. When Ukraine’s state owned oil and gas company missed its bond payment on September 30, it risked more than a few irate investors.

  • Green secondary supply struggle — but primary still booming

    The lack of a securities lending market for green bonds could be stifling the ability of banks to make markets in the product, leaving the buyside struggling to pick up paper in secondaries, a leading investor told GlobalCapital this week. But on the primary side, green demand grows ever healthier, with another set of firsts from public sector borrowers on the way.

  • Covered bond harmonisation is no soft open-ended option

    Harmonising covered bond standards tends to make eyes glaze over. The myriad of different regimes and labyrinth of technicalities involved can seem baffling and trivial. But it would be a mistake to believe the project is an open-ended soft option that will never really happen. Harmonisation will materialise and progress will be monitored, suggesting everyone needs to be up to speed.

  • RBS loses covered bond profile as Walsh departs

    Jez Walsh has left Royal Bank of Scotland where he had been in charge of covered bond syndication for 15 years. His departure follows a string of high profile exits from the bank’s covered bond team including Allen Rad, Christoph Anhamm, Sophie Kwon, Frank Will and Jason Wolfe.

  • Widening in US CLOs takes toll on equity

    The US CLO market took a turn for the worse this week, with new issue spreads widening and a large proportion of secondary market bid lists failing to trade. Illiquidity in CLOs and a widening in the underlying leveraged loan market is now causing problems in the primary market, particularly for equity investors.

  • World Bank USD4bn 1.875% Oct 19

  • Periphery yields up as ECB disappoints but Ireland tipped for syndication joy

    Eurozone periphery yields rose late on Thursday after European Central Bank president Mario Draghi failed to excite market participants with hints of more dovish measures such as sovereign quantitative easing. But with rates still near historic lows, few funding officials will be worried — least of all in Ireland, which revealed plans for a possible syndication in the final quarter of the year.

  • German champion Adidas’ unrated €1bn slips in soggy market

    Adidas, the German sportswear maker, issued its first bond for five years on Wednesday. The company’s rarity, high perceived credit quality of around the single-A level and very strong brand name should have made this a triumphant deal – but in the treacherous conditions of this week it was a mess.

  • SocGen makes up ground as Russia dries out

    A particularly poor third quarter has seen CEEMEA bond issuance dwindle to a third of the amount in the same period last year. With Russia and Ukraine all but shut out of the capital markets, bankers have also been faced with choppy markets and poorly performing new issues.

  • German champion Adidas’s unrated €1bn slips in soggy market

    Adidas, the German sportswear maker, issued its first bond for five years on Wednesday. The company’s rarity, high perceived credit quality of around the single-A level and very strong brand name should have made this a triumphant deal, but in the treacherous conditions of this week it was a mess.

  • Top issuers print as hot SSA market stutters

    A pair of top quality issuers were the only borrowers in the sovereign, supranational and agency sector to get benchmarks away this week, as conditions that have been sizzlingly since the summer break showed signs of cooling.

  • MTN Leak: Three’s a crowd, four’s an army

    While the financial world has been enduring lay-offs and that ugly word “downsizing” at every turn over the last few years, Commerzbank’s Andrew Nicola has been fighting the tide by producing an army of mini-MTNers.

  • Fed targets Credit Suisse's LevFin business, other banks pressured

    Credit Suisse’s leveraged finance business has come under harsh scrutiny from the US Federal Reserve. The bank has received an especially stern letter from the financial regulator, but market participants say most institutions have been criticised severely for their risky lending practices.

  • Bankers mull Promsvyazbank as CEEMEA loans plummet

    Promsvyazbank continued to provide a glimpse of hope for Russian loans this week, with some banks looking to give feedback by close of business on Thursday to its request for proposals on a deal. But any optimism around the borrower was dampened by lengthening views on a timeline for the EU repealing Russian sanctions and quarterly figures showing a big hit to overall CEEMEA loan volumes.

  • People Moves in Brief

    HSBC picks capital financing heads - RBS lays out loans plan - CME Group plots expansion - Lloyds combines levfin

  • Supranationals and agencies pound through sterling deals

    Korea Eximbank was among several issuers to tap demand in sterling this week. Kexim took advantage of a window of issuance ahead of a European Central Bank meeting on Thursday and non-farm payrolls on Friday to bring its first fixed rate syndication in the currency.

  • Aegon looks to repeat Storm success in tight Dutch RMBS

    Dutch insurer and mortgage lender Aegon will look to emulate the success of compatriot Obvion in the RMBS market next week after mandating banks to conduct roadshows for the latest trade from its Saecure platform. Obvion set a post-crisis record tight with its latest Storm RMBS last week as investors piled into European ABS in anticipation of the European Central Bank making purchases.

  • Westfield CMBS relaunch follows Dutch landmark

    Crédit Agricole and Deutsche Bank this week relaunched the £750m Westfield CMBS they were forced to pull in the summer amid poor demand and regulatory concerns. The deal came the morning after Deutsche Bank priced the first multi-loan and multi-sponsor Dutch CMBS since the crisis.

  • September volatility set to fuel Q3 numbers

    Trading volume driven by volatility during September could mean a decent third quarter for trading focused investment banks. Meanwhile, the primary markets saw the best September on record for IPOs, and although the high yield machine has spluttered a little against a shakier backdrop, bank capital continues to deliver the goods for DCM teams.

  • Draghi reaches for junk but ABS and covered bankers unimpressed by size

    Sub-investment grade ABS and covered bonds will be on the European Central Bank’s shopping list when it begins the private sector purchase programme it hopes will revive real economy lending this month. But stakeholders in both markets remain unconvinced of the size the ECB can achieve and many now see the move as a mere stepping stone to full-blown quantitative easing.

  • EC rules ‘reinforce rating competition’

    The European Commission is set to issue new rules for European structured finance transactions that will see issuers post enhanced deal data on a website and require rating agencies to submit data on ratings and the fees charged to clients.

  • Luxembourg lures Islamic accounts despite low rates

    The Grand Duchy of Luxembourg paid a clear premium over its conventional curve to sell a €200m inaugural sukuk this week. But this concession was down to the small size and not the sukuk structure, said debt bankers involved. A much bigger problem with the debut deal was Islamic investors’ lack of familiarity with just how measly euro rates have become.

  • SocGen makes up ground as Russia dries out

    A particularly poor third quarter has seen CEEMEA volumes down almost threefold from the same period last year. With Russia and Ukraine all but shut out of the capital markets, bankers have also been faced with choppy markets and poor performing new issues.

  • All aboard for QE2

    The longer the European Central Bank waits to talk about sovereign quantitative easing, the closer sovereign QE seems to become.

  • UK issuers eye Q4 for long term funding

    Some of the largest UK banks and other mortgage lenders are preparing returns to the ABS market before the end of the year, with some market sources saying that keeping in touch with their investor base is no longer the main motive for using the asset class.

  • EBRD makes Ukraine trade finance top priority

    The European Bank for Reconstruction and Development has said it is stepping up its efforts in Ukraine and that the country will become its largest trade finance beneficiary by the end of the year.

  • BoE wants power to cap mortgage LTVs

    The Bank of England has set out new powers that would allow its UK regulators to restrict residential mortgage lending, including in the buy-to-let market, to “protect and enhance” financial stability.

  • Carrefour card deal joins busy French pipe

    Carrefour Banque has added to an unusually busy pipeline of French ABS transactions set to be priced in the next week or so, after mandating banks for its second credit card receivables securitization almost a year after its first.

  • RSA Insurance GBP400m 5.125% Oct 45 tier two

  • High yield on hold as turmoil wrecks primary market hopes

    The high yield new issue market is in tatters after a month of uninterrupted turmoil in both the primary and secondary markets. It should have been one of the busiest months of the year but most banks active in European leveraged finance have judged it anywhere from undesirable to impossible to launch high yield bond transactions, as they hunker down and wait for a return to more favourable conditions, writes Olivier Holmey.

  • Suncorp-Metway GBP250m FRN Oct 17

  • WMF widens €615m loan's pricing as US market riches lure investors

    WMF, the German kitchenware producer, widened pricing on its €615m leveraged acquisition loan this week, becoming the latest in a run of borrowers to do so in September as lenders find more lucrative opportunities in the US.

  • Naftogaz payment delay does Ukraine no favours

    Ukrainian state-run oil and gas company Naftogaz has confirmed the repayment of its $1.6bn eurobond after failing to meet its September 30 deadline. While the delay did not come as a surprise to many, bondholders were left with sweaty palms on Wednesday and whispers of default did not do the country’s capital market standing any favours.

  • After the splurge, the purge as AT1 market waits for November

    Bankers are preparing for a rush of additional tier one deals in November, with many issuers expected to tap the market after what is predicted to be a tepid October for issuance. While blackouts and the asset quality review (AQR) will keep banks away from the market in the coming weeks, supply is set to come back strongly once the AQR is out of the way.

  • Bankers split on Mol but loan timing praised

    Hungarian oil and gas company Mol has elicited a varied response among loans bankers after requesting proposals on a $500m-$1bn loan last week. But even those not looking to take part in the deal have agreed that Mol’s timing is good, given an absence of other deals in the region – with Russian borrowers notably absent.

  • Lucky Seven: Nigerian comeback signals end of HY horror show

    Seven Energy made a successful comeback in testing conditions on Thursday. While it certainly paid for the privilege, having already secured strong anchor orders before proceeding, the trade signals that the miserable high yield market may be improving.

  • Leveraged loans, news in brief — 3 October 2014

    Tele Columbus — Travelport — Lindorff — Certeum

  • Hungry banks crowd into Bestway's £725m loan, chasing after company's credit quality

    Bestway, the privately owned UK groceries wholesaler, has tightened pricing on £725m of loans amid high demand. The financing is for its £620m acquisition of the Co-operative Group's pharmacy division.

  • Three squeeze into narrow window as markets totter

    The overnight blocks business in Europe is feeling the effects of choppy markets, with deals bunching up as vendors rush for the same fleeting windows. This week that meant three big deals launched in one evening on Tuesday, but little else to speak of.

  • Bayer’s $7bn acquisition bond a $27bn hit in worst week of 2014

    Bayer, the German pharmaceutical and chemical company, braved the toughest credit market conditions of 2014 this week to complete its biggest bond deal, as investors lost their appetite for risk.

  • Babcock €550m debut flies over Gross angst

    European credit markets had a nasty turn today, which salespeople and analysts blamed on news that Bill Gross, the so-called “Bond King’”, had decided to leave Pimco, the world’s biggest bond investor – though perhaps just because they wanted something to blame. Yet Babcock International, the UK engineering services group, still managed to issue a €550m bond – its first in the European market.

  • Blackout and turmoil stems FIG tide

    Third quarter earnings blackout and choppy credit markets ensured a sedate start to the month for FIG issuers after a deluge of supply in September.

  • Aéroports de Paris lands safely in crosswinds

    Aéroports de Paris seized the opportunity presented by slightly stabler markets on Wednesday morning to price a €500m 10.5 year bond with what one banker said was its lowest ever coupon on such a long bond.

  • FinEx launches OTC commodities biz

    Integrated asset management, private equity and hedge fund shop FinEx Group, has launched a commodities boutique that will provide hedging and risk management services via derivatives and structured products to commodity producers and consumers globally.

  • Equity capital markets, news in brief — October 3, 2014

  • Investment grade loans, news in brief — October 2, 2014

    Hexagon — Norma Group

  • Sterling duo shrug off shaky credit markets

    In a week with no senior or subordinated issuance in euros, RSA Insurance and Suncorp-Metway took centre stage with sterling prints. Both financials were able to get successful deals away despite struggling with turbulent markets, though they did catch some flak for issuing in volatile conditions.

  • Guggenheim Securities buys broker in phase one of European expansion

    Guggenheim Securities has bought the European brokerage arm of Lazard Capital Markets, in a move which signals the start of the broker-dealer’s European expansion plans. The new entity will be branded Guggenheim Securities International.

  • Yapi signs $1.3bn near end of Turkish run

    Yapı Kredi Bank has signed a $1.3bn-equivalent one year loan, refinancing its $1.19bn deal from September 2013.

  • Iron condors ready to swoop on short VIX ETF

    Denver-based financial boutique IPS Strategic Capital is readying a novel out-the-money iron condor trade on the ProShares Short Volatility Index Short Term Futures Exchange Traded Fund, as a short term hedge against S&P500 drawdowns of between 5%-6%.

  • Bank of Oman debut bucks trend to perform in secondary

    National Bank of Oman launched its debut bond on Tuesday morning in less than ideal market conditions but the $500m deal was one of the few EM offerings which performed well in secondary this week.

  • Emaar Properties raises $1.6bn in pioneering Dubai malls float

    Emaar Malls raised $1.6bn through an IPO completed over the weekend, which bankers hope could open up what they have called one of the biggest liquidity hubs in the world.

  • Synthos sell off could have lasting impact

    Bonds newly issued by Polish chemicals firm Synthos had traded down more than two cash points by early this week, with some bankers blaming the deal execution and warning that the trade might have hurt the chances of other Polish firms wanting to access the market. Bankers on the deal defended the sale, saying the issuer had set a very ambitious price target.

  • Bank of Oman debut bucks trend to perform in secondary

    The National Bank of Oman launched its debut offering on Tuesday morning. Market conditions have been less than ideal for the issuer, but Oman’s bond is one of few which has performed well in secondary.

  • Ahli Bank doubles up with loan debut as lenders crowd in

    Qatar’s Ahli Bank has closed a $200m debut syndicated loan, increasing the size of the deal after its initial amount was oversubscribed.

  • Flagstar sets another milestone in servicing debacle

    Concerns around the performance of rapidly growing special mortgage servicing firms in the US grew again this week, as the Consumer Financial Protection Bureau (CFPB) took the unprecedented step of prohibiting Flagstar Bank from taking on any more mortgage servicing rights (MSRs) for delinquent loans, alongside a $37.5m enforcement order.

  • French car park group Infra Foch seeks triple-B bond

    Infra Foch, a new company formed to purchase French car park operator Vinci Park, has mandated banks for a European bond roadshow next week.

  • Esma rules spark confusion in swap market clearing rush

    Fresh challenges have surfaced for banks and other members of clearing houses as they prepare for the dawn of mandatory clearing, after final rules published on Wednesday redefined the categories of counterparties eligible for clearing in Europe. Hazel Sheffield reports.

  • FSB calls for bail-in clarity as HoldCo plan firmed up

    The Financial Stability Board called for clarity regarding bail-in debt to help resolve cross-border banks, ahead of a crucial G20 meeting which should set the final round of bank capital requirements.

  • S&P takes axe to sub debt

    Standard & Poor's on Monday said it had downgraded almost 90% of the European financial subordinated debt that it rates, as it responded to the new regulatory environment of higher coupon deferral and bail-in risks.

  • Draghi commits to buying junk ABS

    European Central Bank president Mario Draghi brought his determination to buy Greek and Cypriot ABS into the public sphere on Thursday as he said the intention was to include sub-investment grade paper in the purchase programme in a bid to make it as inclusive as possible.

  • Virgin Money joins Aldermore in year of challenger bank floats

    Virgin Money launched a long-awaited IPO on Thursday, making it the second challenger bank in the market.

  • Bad news for retail as Hema bonds drop in secondary

    Bonds issued by Hema, the Dutch discount retailer, traded down on Thursday after the publication of the company’s second quarter results.

  • Tele Columbus launches €500m refinancing loan amid IPO

    Tele Columbus, the German cable television operator, has today unveiled a €500m refinancing loan, which comes to the market two days after the company launched an IPO.

  • Emaar Malls trades up, giving fuel to Dubai listing fire

    Shares in Emaar Malls, the recently listed company that owns the Dubai Mall, surged on its first day of trading on Thursday, providing hope for bankers that had said the company's aftermarket performance could make or break Dubai's IPO reforms.

  • Lloyds combines levloans and high yield, names head

    Carlo Fontana has been made head of Lloyds’s EMEA leveraged debt capital markets team, which combines the bank’s leveraged loans and high yield businesses.

  • Emea syndicated loans for M&A double to €157.6bn

    Borrowers signed €157.6bn of acquisition loans in EMEA during the first nine months of 2014, more than double the €76.2bn raised in the same period last year, with bankers expecting the unusually busy summer to lead into a strong fourth quarter, too.

  • Lucky Seven: Nigerian corporate to make successful comeback

    Seven Energy is about to make it second time lucky, as it readies to price a seven year non-call four offering on Thursday.

  • RSA surprises with sterling tier two

    RSA Insurance hit the market on Thursday with a tier two sterling print, shrugging off recent volatility in the sub debt market. Bankers away from the deal judged it to offer a generous premium, though they conceded this was justified given recent market conditions.

  • Deadline for Promsvyazbank loan commitments arrives

    Responses to Promsvyazbank’s request for proposals on a loan were initially due back by close of business on Thursday, say loans officials. But banks may have asked for extensions until next week, to get internal sign-offs.

  • Sub issuance helps drive busiest year for FIG since 2009

    Issuance from financials in the first nine months of this year has reached its highest level in half a decade, according to figures released by Dealogic on Thursday.

  • Rocket Internet completes IPO, but hit by e-commerce plunge

    German e-commerce startup incubator Rocket Internet fell in the aftermarket after it completed its IPO on Thursday, getting caught up in a market-wide turn against online retail stocks.

  • Naftogaz delay does Ukraine no favours

    Ukrainian state run oil and gas company Naftogaz has confirmed the repayment of its $1.6bn Eurobond after failing to meet its September 30 deadline. While the delay did not come as a surprise to many, bond holders were left with sweaty palms on Wednesday and whispers of default did not do the country any favours.

  • Iceland’s borrowers back in the game

    Iceland is back in the debt markets, with the sovereign and banking sector making impressively speedy progress. However, memories of the country’s 2008 economic collapse and the capital controls that have been in place ever since, are holding Iceland’s issuers back. Many believe a sovereign upgrade is overdue and once that happens prices will begin to fall into line with the country’s peers.

  • EBA says resolution should ignore contractual features

    The European Banking Authority has tried to clear up ambiguity in the European bank resolution rules and the Capital Requirement Regulation by making it clear that the creditor hierarchy should define resolution treatment.

  • UK issuers eye Q4 ABS for long-term funding

    Some of the largest UK banks and other mortgage lenders are preparing returns to the ABS market before the end of the year, with some market sources saying that keeping in touch with their investor base is no longer the main motive for using the asset class.

  • Commodities come into the corporate finance fold

    Banks have shed trading platforms and physical assets but talk of a retreat is overdone, as the business becomes more tailored for the banking mainstream, writes David Rothnie.

  • SIG adds German bank with £250m refi

    SIG, a Sheffield-based specialist building products company, has refinanced a £250m revolving credit facility that was due to mature in May 2015.

  • BoE asks for powers to cap mortgage LTVs

    The Bank of England has set out new powers that would allow its UK regulators to restrict residential mortgage lending, including in the buy-to-let market, to “protect and enhance” financial stability.

  • Crisis-hardened companies look for growth

    Iceland’s companies reduced their debt sharply after the country’s financial crisis, with corporate debt now back to 2005 levels. There are signs, however, that the mood might be changing and that the bond market could play an important role. Phil Moore reports.

  • Plugging into the European energy market

    With only 20%-25% of Iceland’s available hydro and geothermal energy harnessed, the country’s energy potential is vast. The aluminium industry has thus far dominated, but the silicon industry could be the next to come onshore to take advantage of the cheap and plentiful power. Meanwhile, exciting plans to link up to the UK grid are taking shape.

  • LatAm bond volumes slowing, but still on course for record year

    DCM and syndicate bankers still expect 2014 to be a record year for cross-border bond issuance from Latin America and the Caribbean, despite volumes not maintaining the same breakneck pace during the third quarter.

  • Citi returns to top in LatAm

    Bank of America Merrill Lynch and Citi were the biggest climbers in the Latin America and Caribbean international bookrunner DCM league tables in last three months, with Citi replacing HSBC at the top and BofA Merrill breaking into the top four.

  • Iceland: caretaker of the Arctic

    Iceland’s long term commitment to developing its credentials as a North Atlantic economic hub is expected to strengthen, especially now that talks about membership of the EU have been broken off. Phil Moore reports.

  • What part of Eyjafjallajökull don’t you understand?

    The weather is often awful. Hotels and restaurants are still expensive, even after the devaluation of the króna. And when you’ve seen one geyser you’ve seen them all. So why is Iceland enjoying a tourism boom which has taken local economists by surprise?

  • GM Financial opens door for more Chinese auto ABS

    General Motors is planning to introduce its captive auto finance arm into the Chinese market later this year, paving the way for more issuance of auto loan securitizations in the world’s largest auto market. But concerns still remain around the asset class, in a country where securitization laws are relatively new.

  • Cantor hires in US CLOs, looks to replace in London

    Cantor Fitzgerald has hired a collateralised loan obligation trader in its New York office, as it seeks to build out its new issue CLO business. At the same time, it is looking to replace its head of euro CLO origination, who is no longer with the firm.

  • FTSE launches low vol index series

    Index provider FTSE Group and Research Affiliates have jointly launched a low volatility series of benchmarks that can be used as underlyings for structured products and other financial instruments.

  • ABS sales for LCR could be lower than expected

    Investors are expected to hoover up any ABS and CMBS that banks offload to meet regulatory requirements under the recently finalised liquidity coverage ratio (LCR). But they may have less paper to buy than initially expected.

  • Aéroports de Paris prices solid €500m 10.5 year

    Aéroports de Paris seized the opportunity presented by slightly stabler markets today to price a €500m 10.5 year bond with what one banker said was its lowest ever coupon on such a long bond.

  • Agnelli family’s Exor refreshes bond debt with €500m hit

    Exor, a principal holding company of the Agnelli family, which founded Fiat, on Wednesday issued its first bond since 2007. Despite shaky market conditions, the 10 year bond attracted ample demand, helped by the fact that it offered about 150bp of spread — not available every day on investment grade paper.

  • Prologis sells third euro bond this year to fund European expansion

    Prologis LP, a subsidiary of San Fransisco-based industrial real estate investment trust Prologis, priced on Wednesday a €600m six year bond, intending to use the proceeds to expand its European property portfolio.

  • Fast money tap straddle trades on Main as volatility leaps

    Fast money and pure volatility investors were seen selling volatility through a 60bp straddle trade on iTraxx Main as credit volatility reacted sharply to events this week.

  • Adidas dares 12 year unrated, but conditions not optimal

    Adidas, the German sportswear maker, issued its first bond for five years today, with a €1bn seven and 12 year offering. Adidas is a high quality name, but 12 years is an unusually long maturity for an unrated issuer, and with financial markets jittery again today, the deal may not have whizzed off the books as much as it might have in a more bullish atmosphere. Bankers said it widened sharply in the aftermarket.

  • France sells Orange stake, but busy market and investor suspicions dent demand

    The French state sold a €584m stake in telecoms firm Orange on Tuesday night, finding success on a busy evening for blocks.

  • HSBC appoints new global head of leveraged and acquisition finance

    Richard Jackson, co-head of leveraged and acquisition finance (LAF) at HSBC, has been made global head of that division.

  • Natixis scoops ex-SocGen equities bigwig

    Samuel Rosenberg, the ex-global head of financial engineering at Newedge in New York, has joined Natixis, also based in New York.

  • Bank Zachodni defies usual Polish tempo to price quickly

    Santander sold a stake in Polish Bank Zachodni WBK on Tuesday evening, finishing the deal quickly and at a slim discount in a country where quick to market deals tend to run relatively slowly.

  • Yapı Kredi refinances $1.2bn loan

    Yapı Kredi Bank has signed a $1.3bn-equivalent one year loan with banks, refinancing its $1.19bn deal from September 2013.

  • EBRD makes Ukraine top priority for trade finance

    The European Bank for Reconstruction and Development has said it is stepping up its efforts in Ukraine and that the country will become its largest trade finance beneficiary by the end of the year.

  • Lufthansa follows Air France's Amadeus block with second sale

    German airline Lufthansa sold its stake in Spanish holiday IT firm Amadeus through a block on Tuesday night, the second trade in the firm in recent weeks.

  • ECB purchases likely to start November, last four years

    The European Central Bank’s purchases of ABS and covered bonds may start next month and last four years.

  • Enterprise Inns' £250m HY bond shows rare secondary performance

    Enterprise Inns, the UK pub group, priced £249.521m of senior secured high yield bonds on Tuesday to yield 6%, as part of a liability management exercise.

  • Carrefour builds French pipe with small card ABS

    Carrefour Banque has added to an unusually busy pipeline of French ABS transactions set to be priced in the next week or so, after mandating banks for its second credit card receivables securitization almost a year after its first.

  • Hexagon lines up 'marginally oversubscribed' €2bn multicurrency RCF

    Hexagon, a Swedish company which makes precision measurement tools, has obtained a €2bn five year multi-currency revolving credit facility.

  • Abengoa syndicates €1.4bn loan after green bond

    Abengoa, the Spanish renewable energy and engineering firm, has allocated a €1.4bn refinancing loan, after issuing a €500m green bond last week.

  • Walsh leaves RBS

    Jez Walsh has left Royal Bank of Scotland where he had been in charge of covered bond syndication for 15 years. His departure follows Allen Rad who had traded covered bonds since 2008 and Christoph Anhamm who had been in charge of covered bond origination.

  • Moody’s upgrades Travelport to B2

    Moody’s has upgraded UK travel commerce platform Travelport’s corporate rating from B3 to B2, citing the company’s plans to use IPO proceeds to de-lever.

  • Finland's Certeum signs €500m property acquisition loan

    A new Finnish property investment company called Certeum has signed a €500m loan to fund the purchase of assets for its property portfolio.

  • Bankers look ahead to November AT1 rush

    While October is likely to be a quiet month for issuance of additional tier notes with the market hampered by a recent sell-off and the impending asset quality review, bankers are looking ahead to what is shaping up to be a busy November. Strong banks will be looking to benefit from favourable AQR results, while their weaker counterparts will have little choice but to tap the market

  • Pepper to issue new part prime non-conforming RMBS

    Pepper Australia is set to print its second non-conforming RMBS transaction of the year, spicing up the trade’s portfolio of loans to impaired borrowers with a sprinkling of prime mortgages.

  • CME eyes international expansion with leadership reshuffle

    William Knottenbelt, senior managing director; Europe, Middle East and Africa and ceo at CME Europe in London, has been promoted to senior managing director, international at the firm.

  • Borregaard gets bilaterals to optimise terms

    Borregaard, the Norwegian timber-based chemicals firm, has agreed new bilateral multi-currency revolving credit facilities totalling Nkr1.5bn (€185m) with its three relationship banks.

  • Scatec Solar finishes after cutting price, extending marketing

    Scatec Solar completed a Nkr794m ($123m) IPO on Wednesday, finding success with the deal after cutting the price and extending bookbuilding earlier in the week.

  • Seven Energy hopes to defy sell-off with return

    Nigerian oil and gas firm, Seven Energy is out with guidance for its comeback bond. The leads have set a wider guidance than was offered in July, when the borrower had to abort a deal, and will be hoping that the poor performance of this week’s markets doesn’t blight its return.

  • EBRD appoints Bosnia and Herzegovina head

    The European Bank for Reconstruction and Development has appointed Ian Brown as head of its office in Bosnia and Herzegovina, starting Wednesday.

  • New ABS disclosure rules to ‘reinforce rating competition’

    The European Commission is set to issue new rules for European structured finance transactions that will see issuers post enhanced deal data on a website and require ratings agencies to submit data on their ratings and the fees they charge clients.

  • Arbitrage on the menu as benchmark supply dries up

    Sovereign, supranational and agency issuers are primed to explore small prints in core currencies as well as looking to non-core currencies like sterling, as holidays in Asia will close benchmark supply in dollars after a storming month of new deals.

  • Shoots of recovery showing after sub sell-off

    There were signs of recovery in the FIG subordinated market on Wednesday, with some securities beginning to trade tighter after a torrid time of it over the last week. While supply will be minimal in the next few weeks, the improved tone bodes well for a busy November after the European Central Bank’s asset quality review.

  • Miserable markets mar EM pipeline

    New issuance in emerging markets has been overshadowed this week by the poor performance of last week's deals. However, bankers say that at the right price, there are still deals to be done.

  • Credit’s unease stalls high yield, not investment grade

    A few stomach qualms have been felt in corporate credit trading this week, as the iTraxx Europe Main index snapped out 4bp on Monday, its biggest widening since May and taking it back to early August levels. Bankers scoffed at the idea this was a reaction to Bill Gross leaving Pimco — more likely, investors are feeling nervous after a big bull run and heavy bond issuance in September.

  • KBC closes €25bn CDO book with final two sales

    KBC has collapsed the two remaining collateralised debt obligations (CDOs) in its portfolio, taking a loss on the value of the assets and closing the €25bn position it has been selling down over the last five years.

  • Argentina defies US again with bond payment

    For Argentina it is a sign of its dedication to paying creditors. For the US judge involved it is contempt of court. One thing is for sure: the South American state’s payment of its international bonds via a local account shows that a conclusion to Argentina’s debt saga is no nearer than it was when the sovereign defaulted on July 31.

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 20 Oct 2014
1 JPMorgan 274,362.92 1088 8.09%
2 Barclays 246,500.00 850 7.26%
3 Citi 241,124.13 935 7.11%
4 Deutsche Bank 240,786.09 977 7.10%
5 Bank of America Merrill Lynch 235,519.40 841 6.94%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 21 Oct 2014
1 BNP Paribas 45,034.29 183 7.39%
2 Citi 34,532.35 96 5.67%
3 Deutsche Bank 34,196.96 122 5.61%
4 Credit Agricole CIB 30,654.20 126 5.03%
5 Barclays 28,791.02 107 4.72%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 21 Oct 2014
1 JPMorgan 23,663.67 112 9.36%
2 Goldman Sachs 22,917.78 77 9.07%
3 Deutsche Bank 20,595.54 76 8.15%
4 UBS 19,458.10 79 7.70%
5 Bank of America Merrill Lynch 18,899.80 68 7.48%