Leveraged/non-investment grade

  • Unfinished business

    Unfinished business

    As much as everyone would like to put the UK's messy divorce from the EU behind them, it remains a very live topic — especially for bankers who don't want to live in Frankfurt.

  • Funding scorecard: European sovereigns

    Funding scorecard: European sovereigns

    This week's funding scorecard looks at the progress European sovereigns have made in their funding programmes as we approach the middle of June.

  • Goldman brings office CMBS as Dutch lockdown ends

    Goldman brings office CMBS as Dutch lockdown ends

    Goldman Sachs announced this week that is is refinancing a portfolio of Dutch office, hotel and retail outlets through a €220m CMBS called Bruegel 2021. The transaction is added to the growing pile of CMBS as investor confidence grows in assets impacted by the pandemic last year.

  • AFME: too soon for ECB to relax lev ratio relief

    AFME: too soon for ECB to relax lev ratio relief

    Any talk of relaxing leverage ratio relief in the eurozone is premature, according to the Association for Financial Markets in Europe, which said this week that the support measure must remain in place until the economy has moved on from the impact of the pandemic.

  • Spread stability in secondary rates market ahead of EU test

    Spread stability in secondary rates market ahead of EU test

    An ECB meeting on Thursday that delivered what traders had predicted meant there was little volatility in the rates market that afternoon. With a glut of supply about to come from the EU, one trader predicted spread tightening may follow the bellwether trade.

  • CVC joins PE firms raising cash in private debt markets

    CVC joins PE firms raising cash in private debt markets

    Alternative asset manager CVC Capital Partners has issued €1.25bn in US private placements, according to market sources. The trade follows similar moves by Bain Capital and Dyal Capital in the past 12 months, but is the first iteration of the trend to be priced in euros.

  • ABN and Svenska crown non-pref dollar debuts

    ABN and Svenska crown non-pref dollar debuts

    Yankee borrowers found swift execution and deep liquidity as they peppered the dollar market this week, with ABN Amro and Svenska Handelsbanken each printing debut non-preferred senior trades in the currency.

  • BMW gets tight pricing on public Panda debut

    BMW gets tight pricing on public Panda debut

    Germany’s BMW sold two Panda bonds in China’s interbank market on Thursday, tapping onshore liquidity with a publicly syndicated deal for the first time. The transaction was also a rare public corporate outing from a ‘real’ Panda issuer.

  • Frontera finds broader audience on bond return

    Frontera finds broader audience on bond return

    Frontera Energy on Thursday became the latest Latin America oil and gas company to take advantage of strong oil prices to tap bond markets, with the company — which operates mostly in Colombia — increasing the size of a five year deal and attracting a broad range of investors.

  • Azul flies LatAm down credit curve

    Azul flies LatAm down credit curve

    Brazilian airline Azul on Thursday sold the first triple-C rated new issue from Latin America since the coronavirus pandemic began, pricing a five year bond inside guidance to as investors swarm all over the region’s riskier credits.

  • Gangfeng Lithium mines funds from H-share placement

    Gangfeng Lithium mines funds from H-share placement

    Gangfeng Lithium Co, the world’s largest lithium metal supplier, raised HK$4.869bn ($628m) from a placement over just two hours of bookbuilding as investors flocked to the Chinese company’s deal.

  • BofA forms EMEA ESG council as it seeks ‘glidepath’ to lower emissions

    BofA forms EMEA ESG council as it seeks ‘glidepath’ to lower emissions

    Bank of America has set up an EMEA ESG strategic council chaired and led by three senior investment bankers, to intensify its effort to reduce its carbon footprint and manage its climate risks. BofA made a net zero commitment in February but has not yet set out its decarbonisation trajectory.

  • GlobalCapital Bond Awards — less than a week to go!

    GlobalCapital Bond Awards — less than a week to go!

    Join us as GlobalCapital announces the winners of its Bond Awards 2021 — including our Socially Responsible Investment Awards — in our online ceremony on Wednesday, June 16 at 3pm London time, 4pm CEST, 10am NY time.

  • Dirty sectors produce hot SLBs but credibility questioned

    Dirty sectors produce hot SLBs but credibility questioned

    The nascent sustainability-linked bond (SLB) faced a big test this week with deals from the oil, power and steel sectors, and most notably from Brazil meat processor, JBS. But if the enthusiastic reception to the deals suggested the market passed with flying colours, there were calls for more scrutiny of the relevance of KPIs if the SLB label is to mean anything. Oliver West reports.

  • UK to be torn between harmony and leadership on green regulation

    UK to be torn between harmony and leadership on green regulation

    The UK has begun the process of creating its own versions of the European Union’s sustainable finance regulations, by picking a Green Technical Advisory Group to help it draft a green taxonomy. It will face two conflicting priorities: to maximise harmonisation by staying close to EU rules; and to depart from them, for a variety of reasons including the possibility of improving on the EU’s approach.

  • EU to ‘test depth’ of bond market with Next Gen summer splash

    EU to ‘test depth’ of bond market with Next Gen summer splash

    Bring it on. That was the summary of the European Union’s investor call on Tuesday as it laid out its bold issuance plan to tackle its €800bn Next Generation EU (NGEU) funding programme. The EU could raise up to €45bn before the end of July, with the first deal set to hit screens early next week, reports Burhan Khadbai.

  • Greek banks shift focus to MREL, green bonds after landmark Piraeus AT1

    Greek banks shift focus to MREL, green bonds after landmark Piraeus AT1

    Piraeus Bank showed the depth of investor demand for high-yielding bank debt this week when it brought the first additional tier one (AT1) out of Greece with one of lowest ratings ever seen in the market. Greek banks are now expected to turn their attention to the minimum requirements for own funds and eligible liabilities (MREL), where green labels and sustainability-linked structures could help them achieve their goals.

  • ECB skirts danger at meeting, sets up clash for September

    ECB skirts danger at meeting, sets up clash for September

    The European Central Bank managed to steer around the topic of tapering its asset purchase programmes at its monetary policy meeting on Thursday, but with growth and inflation increasing rapidly, the debate is going nowhere, and economists believe a fight is brewing for the September meeting.

  • First GBP update since 2018 calls for holistic disclosure

    First GBP update since 2018 calls for holistic disclosure

    The Green and Social Bond Principles organisation published the first new version of the Green Bond Principles since 2018 on Thursday. It strengthens the recommendations that issuers publish a bond framework and obtain an external review, and encourages issuers to communicate about their organisation-wide sustainability efforts, not just the assets linked to the labelled bond.

  • US aircraft ABS en route to speedy recovery

    US aircraft ABS en route to speedy recovery

    The US aircraft ABS market is recovering at a faster pace than anticipated, bolstered by increasing vaccination rates and a pent-up desire to travel ahead of the summer months. However, the biggest driver for investor demand is the structural changes in recent deals, with pristine collateral, longer debt coverage ratios and robust skin in the game.

  • Kensington ‘green’ RMBS priced despite scepticism

    Kensington ‘green’ RMBS priced despite scepticism

    Kensington, the pioneer of the first social RMBS in the UK, priced the country’s first mortgage securitization with a class ‘A’ green tranche, achieving 65bp pricing for the senior notes on Thursday. However, investors said the green feature did not impact on pricing and called for “more ambitious” ESG targets.

  • Buy-side bemoans Europe’s quixotic IPO market

    Buy-side bemoans Europe’s quixotic IPO market

    Europe’s IPO market is brimming with deals but investors think that some banks are pushing companies that have no chance of listing, which will lead to a high failure rate. The number of pulled deals is growing and that is earning the wrath of the buy-side, writes Sam Kerr.

  • Covereds wobble as sensitivity on display

    Covereds wobble as sensitivity on display

    Covered bonds issued this week by SCBC and Bank of New Zealand were thinly oversubscribed and illustrated that investors are still sensitive to price, albeit that demand was good for a small green debut from Eika Boligkreditt and a tap from Oma Savings Bank.

  • CLO investor Sancus leads wave of new managers

    CLO investor Sancus leads wave of new managers

    CLO investor Sancus Capital Management became a manager last week when it priced its debut deal. Pacific & Plains Capital, another newly formed CLO business, is also expected to join the list of CLO managers with a first deal on the horizon.

  • MREL is the real challenge for Greek banks

    MREL is the real challenge for Greek banks

    Investors had plenty of appetite for a super-high yielding additional tier one from Piraeus Bank this week. Will they still be hungry when Greek banks try and issue large volumes of senior debt for their regulatory requirements?

  • Bread Street aims to bring private equity to UK pensions

    Bread Street aims to bring private equity to UK pensions

    Two former investment managers at Aberdeen Standard have launched a firm called Bread Street Capital Partners, with the aim of creating a series of listed private markets funds to broaden access to the funds of top tier financial sponsors. The firm also aims to capture more investment from UK defined contribution pension schemes, which have historically had tiny allocations to private equity compared with some of their international peers.

  • Ascendas hires for debut in euros

    Ascendas hires for debut in euros

    Ascendas Reit, Singapore’s largest listed business space and industrial real estate investment trust, mandated banks for a debut Eurobond on Thursday, with some analysts saying that the debt markets are underpricing risk for office operators.

  • OeKB ready for Sonia and Sofr in Q3

    OeKB ready for Sonia and Sofr in Q3

    Österreichische Kontrollbank (OeKB) will be ready to issue floating rate notes linked to the recommended new risk free rates in sterling and dollars in the third quarter of 2021.

  • Europe's convertible market goes old school

    Europe's convertible market goes old school

    Europe’s equity-linked bankers are focusing on bringing more traditional issuers back to the market following a rotation in equities out of high growth technology stocks and into companies that stand to benefit from the post-pandemic economic reopening.

  • Moves in Brief — June 11, 2021

    Moves in Brief — June 11, 2021

    Habeck returns to syndicate at SMBC — Deutsche appoints co-heads of Americas ECM — JPM sends levfin bankers to US — Elfring lured out of retirement — Barclays hires CLO syndicator — Eagle Point snags head corporate trader

  • BNPP announces Spanish auto capital relief trade

    BNPP announces Spanish auto capital relief trade

    On Thursday, BNP Paribas announced Autonoria Spain 2021, an STS deal aiming to achieve significant risk transfer through a full cap-stack offering. Only one triple-A rating is listed on the senior notes, but investors say demand is still high for the deal.

  • Coty scores with euro secured

    Beauty company Coty took out more of its bank debt with a secured bond this week, increasing its deal size from €500m to €700m and pushing through the 4% yield barrier to land the new issue at 3.875%. The Caa1/B- rated company has struggled to turn its business around and still has negative free cash flow, but a new management team, a new plan and a senior spot in the capital structure helped enthuse investors to buy the new bonds.

  • ANZ hits sterling with Aussie TLAC build-up set to take off

    ANZ hits sterling with Aussie TLAC build-up set to take off

    ANZ dropped into the sterling market this week in search of tier two paper, which will help it meet its total loss-absorbing capacity (TLAC) requirements. With the TLAC deadline fast approaching, Australian firms are expected to make use of the attractive funding conditions to ramp up their subordinated issuance.

  • Equitable brings FAB funding run to euros

    Equitable brings FAB funding run to euros

    Equitable Financial Life brought its first funding agreement-backed (FAB) deal in euros on Thursday, paying up slightly to access the currency after a very busy funding run in dollars.

  • Basic Fit taps convert market as gyms reopen

    Basic Fit taps convert market as gyms reopen

    Basic Fit, the Dutch operator of low-cost gyms, has issued a €303.7m convertible bond as it prepares for growth opportunities following the reopening of all of its fitness centres this week following more than a year of lockdowns caused by the pandemic.

  • Hesse plans debut green bond

    Hesse plans debut green bond

    The German state of Hesse was marketing its new green bond framework this week ahead a of a debut deal in the format.

  • Moody’s covered bond RFC bodes well for Swiss structures

    Moody’s covered bond RFC bodes well for Swiss structures

    Moody’s has published a request for comment regarding a proposed change in its rating methodology that could improve the rating stability of Swiss structured covered bonds. This could in turn give regulators another reason to consider updating the country’s legal framework.

  • Colisée looks to reprice EQT’s acquisition debt

    Colisée looks to reprice EQT’s acquisition debt

    Nursing home and elderly care company Colisée, which EQT Infrastructure acquired last year, was in the market on Thursday, looking to reprice the €875m acquisition facility and add-on a further €150m to pay down its revolver.

  • Promise of ‘greenium’ pushes FIG ESG supply to record pace

    Promise of ‘greenium’ pushes FIG ESG supply to record pace

    Banks have already printed more green bonds this year than they sold in the whole of 2020 and the momentum in issuance is showing no sign of slowing. Borrowers are increasingly interested in labelling subordinated debt, amid growing evidence that such products can offer even more pricing power.

  • Believe buyers show lack of belief as stock tanks 14% after IPO

    Believe buyers show lack of belief as stock tanks 14% after IPO

    Believe, the French digital music company, completed its Paris IPO on Thursday morning but the shares bombed in their first hours of trading in another blow for European listings. However, sources close to the transaction were still pleased to get the deal across the line in what they saw as a boost for the French IPO market after another sizeable listing was pulled last week.

  • CEEMEA duo tap into ESG bond market

    CEEMEA duo tap into ESG bond market

    Georgian Railway and Togo-headquartered Ecobank Transnational launched a green bond and a sustainability-linked bond, respectively, on Thursday.

  • Foreign financials flock to Swissies

    Foreign financials flock to Swissies

    A trio of foreign banks tapped an attractive Swiss market this week, finding opportunities to top up their well-advanced funding programmes with a bit of pricing arbitrage.

  • Ico lines up new green bond

    Ico lines up new green bond

    The Instituto de Crédito Oficial, Spain’s promotional bank, is holding a series of investor meetings to promote a new green bond.

  • Evergrande’s bond crash hits China’s high yield market

    Evergrande’s bond crash hits China’s high yield market

    Chinese property company Evergrande Group’s dollar bonds have plummeted in the secondary market, following news that regulators are scrutinising the borrower. The effect has been far-reaching — dampening sentiment for other high yield real estate bonds and putting both investment bankers and investors on guard. Morgan Davis reports.

  • Pigging out: Six banks form club for WH Group’s $1.9bn buy-back

    Pigging out: Six banks form club for WH Group’s $1.9bn buy-back

    WH Group has turned to banks for about $1.25bn to fund a share buy-back, as the world’s largest pork company takes advantage of attractive market conditions to raise a new loan. Unlike its acquisition fundraising eight years ago, which received plenty of criticism and pushback from lenders, the market’s response this time around is different — despite some initial confusion, writes Pan Yue.

  • MetLife, Pricoa pip PP market to Biffa trade

    MetLife, Pricoa pip PP market to Biffa trade

    Two of the largest private placement investors have beaten the broader market to a deal with Biffa, the UK waste management company, after many investors expected the transaction to be widely marketed. More frequently, larger investors are going direct to borrowers with bilateral and club deals, undercutting the syndicated market.

  • BofA puts big hitters on EMEA ESG council

    BofA puts big hitters on EMEA ESG council

    Bank of America has set up an EMEA ESG strategic council chaired and led by three senior investment bankers, to intensify its effort to reduce its carbon footprint and manage its climate risks.

  • Hong Kong: Give shots to get shots

    Countries around the world are announcing all kinds of incentives to encourage people to get vaccinated. But access to alcohol may offer the most appeal.

  • Habeck returns to syndicate at SMBC

    Habeck returns to syndicate at SMBC

    Former Goldman Sachs and Morgan Stanley banker Dolph Habeck has landed a senior syndicate role at SMBC Nikko in New York, following his recent spell at Greensill Capital.

  • Brazilian electric firm to join LatAm bright lights

    Brazilian electric firm to join LatAm bright lights

    Light, the fifth largest energy distributor in Brazil, began investor calls on Wednesday ahead of a proposed five year non-call three deal that it will use to redeem its only international bond. The company joins a long line-up of LatAm companies preparing to issue, with the strong pipeline likely to translate into new supply as soon as Thursday.

  • Sona BLW, Shyam Metalics ready for IPOs

    Sona BLW, Shyam Metalics ready for IPOs

    Two Indian companies will be testing investor appetite for their IPOs on Monday next week, as the country continues to battle a recent surge in Covid-19 infections.

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