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Crisis Suisse and opportunity
It is often said, incorrectly, that the Chinese word for crisis consists of the characters meaning danger and opportunity. While the translation may be off — the components are more like danger and change point — they may well describe the situation at crisis-riddled Credit Suisse for one big name banker.
09 Apr 2021 -
Deutsche Telekom dials down under
Deutsche Telekom dialled in to the Aussie dollar market after an almost two year absence this week, extending its curve to 2041.
09 Apr 2021 -
IMF ramps up focus on climate, launches innovative database
Climate change will become much more prevalent in the International Monetary Fund’s work this year, including its assessments of countries’ financial stability, after sustained complaints that it has not paid enough attention to global warming. Ways to link debt relief to climate action will take longer to implement.
09 Apr 2021 -
Italy EUR7bn 0.25% Mar 28 tap, EUR5bn 2.15% Mar 72
09 Apr 2021 -
Pepp pace increase still to come
It is almost a month since the ECB promised to “significantly increase” the pace of its purchases under the Pandemic Emergency Purchase Programme. So far, the purchase data reveals little in the way of acceleration, but the head of the Italian treasury Davide Iacovoni says it’s on the way.
09 Apr 2021 -
Harsh sell-off grips govvies worldwide, but primary market to truck on
Government bonds around the world were hit by a wave of selling on Friday morning without an obvious trigger from new data or central bank policy updates. However, traders believe a heavy supply schedule and news of increasing deficits are likely to blame.
09 Apr 2021 -
Funding scorecard: French agencies
This week's funding scorecard looks at the progress French agencies have made in their funding programmes at the beginning of April.
09 Apr 2021 -
Berlin Hyp sets ‘high bar’ in FIG with first sustainability-linked bond
Berlin Hyp will become the first bank to issue a sustainability-linked bond (SLB), after it announced plans on Friday for a deal with a coupon that will step up if the issuer fails reduce the carbon intensity of its loan book by 40% over the next 10 years.
09 Apr 2021 -
NatWest Group prunes legacy debt
NatWest Group plans to redeem a 36 year old perpetual bond as it continues to clean up its capital stack ahead of the CRR transitional deadline later this year.
09 Apr 2021 -
Hardware store Obi launches Schuldschein
Obi, the German DIY store, has launched a Schuldschen across three, five and seven years, according to market sources. The spread differential between three and five years is steeper-than-usual, to coax investors further along the maturity curve.
09 Apr 2021 -
Dutch metals firm AMG reaps benefits of EV surge
AMG Advanced Metallurgical Group (AMG) found strong demand for a €102m capital raise on Thursday night from investors keen to back the growing demand for lithium, stoked higher by increased global production of electric vehicles.
09 Apr 2021 -
Wendel links loan to female leadership
Wendel, the French private equity firm, has amended a €750m revolving credit facility to add ESG elements, including one for higher female representation in leadership positions, as more investment houses make social equality a focus.
09 Apr 2021 -
Pandemic winners and losers raid Europe’s convertible bond market
Europe’s primary convertible bond market has reopened after the Easter break with two new deals on Friday from issuers with very different sector profiles.
09 Apr 2021 -
EU seeks up to €5bn for EFSM programme
The European Union sent banks a request for proposals on Thursday to fund a maturity lengthening operation for Portugal and Ireland under its European Financial Stabilisation Mechanism (EFSM) programme. More sovereigns could also enter the market
09 Apr 2021 -
China policy round-up: Beijing cracks down on regional financial institutions, Hainan FTP access rules ease up, Guangzhou reveals ambitious GBA development plan
In this round-up, the State Council flags up risks at regional financial institutions in China, measures have been announced to relax market access in the Hainan Free Trade Port, and the Guangzhou government details a plan to develop the financial industry and support cross-border businesses in the Guangdong-Hong Kong-Macao Greater Bay Area.
09 Apr 2021 -
China markets round-up: D-Sibs face higher capital requirements, foreign holding of interbank bonds drops, JD Digits to set up financial holdco
In this round-up, Beijing plans to beef up capital requirements for domestic systemically important banks, foreign investors reduce their investment in domestic Chinese bonds in March, and JD.com’s technology unit is reportedly planning to set up a financial holding company.
09 Apr 2021 -
SF‘s Kerry loan oversubscribed by sub-underwriters
Chinese delivery company SF Express Co’s loan to support its acquisition of Kerry Logistics Network has received strong support from banks in senior syndication.
09 Apr 2021 -
Dongfeng Nissan parks new ABS amid yield fall
Dongfeng Nissan Auto Finance Co came to China’s ABS market this week with a Rmb4.41bn ($673m) auto loan deal under the Vinz series, taking advantage of a recent decline in onshore yields.
09 Apr 2021 -
KDIC takes W149bn from Woori Financial block
A South Korean state-backed insurer pared its stake in Woori Financial Group this week, selling a chunk of shares for W149.3bn ($133.2m), according to a source familiar with the matter.
09 Apr 2021 -
EIB makes CNH Climate Awareness Bond debut
The European Investment Bank has become the latest SSA issuer to tap the offshore renminbi (CNH) market, pricing its inaugural Climate Awareness Bond in the currency this week.
09 Apr 2021 -
Kores drills into dollar market
Mining company Korea Resources Corp (Kores) courted dollar investors with a five year transaction this week, marking its return to the bond market after a gap of three years.
09 Apr 2021 -
Zhenro seals sub-one year green bond
Zhenro Properties Group sold a short dated bond worth $220m on Thursday, adding further momentum to Asia’s growing green market.
09 Apr 2021 -
Tencent-backed Anjuke sets Hong Kong listing in motion
Anjuke Group, a Chinese real estate services platform that is backed by high profile investors like Tencent Holdings, Warburg Pincus and General Atlantic, is seeking approval for a Hong Kong IPO.
09 Apr 2021 -
UBS hires for Asia DCM syndicate team
UBS has hired Bryan Kuo as a director on its debt capital markets syndicate team.
09 Apr 2021 -
Golden Eagle checks out with $601m from 15 banks
Chinese department store operator Golden Eagle Retail Group has closed a $601m-equivalent refinancing loan with 15 lenders.
09 Apr 2021 -
UOB appoints new chief sustainability officer
Singapore’s UOB has appointed Eric Lim as its chief sustainability officer, a newly created position to support the bank’s focus on ESG, which got a fresh impetus this week with the sale of the lender’s first sustainability bond.
09 Apr 2021 -
Mexico proves 20 year worth to continue proactive LM strategy
Mexico cleaned up a chunk of short-term debt maturities on Tuesday with a $3.26bn 2041 bond. The country’s deputy finance minister told GlobalCapital that the sovereign had decided to act fast to issue amid expectations that US Treasury yields will widen further.
08 Apr 2021 -
Marvell Technology chips in to empty bond market as China approves M&A
Marvell Technology, the Bermuda-registered US chipmaker, jumped into the dollar bond market this week with a $2bn trade linked to a $10bn acquisition, after clinching the deal more quickly than expected.
08 Apr 2021 -
Suriname creditors back latest debt deferral
A group of institutional investors owning international bonds issued by Suriname have agreed to grant the South American sovereign a third debt payment standstill after the issuer modified the terms of a consent solicitation.
08 Apr 2021 -
Marketplace lenders break into auto lending
Marketplace lenders are breaking into the auto loan industry, continuing to move far beyond the unsecured consumer loan products they began with. The move is driven by fintechs leveraging their technologies and client bases developed through their consumer loan products to open up new channels of income, sources say.
08 Apr 2021 -
M&A surge cannot slake debt markets’ thirst for deals
Debt markets are awaiting a wave of mergers and acquisition financings in the second quarter and later this year, as the boom in deals sparked by confidence that the economy is recovering from the coronavirus gathers steam. But the eagerness to lend will create tension between loan and bond markets, and deals are likely to get more challenging later in the year, write Mike Turner and Jon Hay.
08 Apr 2021 -
EM set for uneven recovery, says IMF, though SDR boost on horizon
An uneven economic recovery is expected across emerging and developed markets over the next year, the IMF said this week during its spring meetings. Meanwhile, a proposed boost to special drawing rights has split market opinion.
08 Apr 2021 -
EU reboots NPL rules as bad debt looms
Long-awaited amendments to European securitization law come into force on Friday, which should make non-performing loans securitization easier at a time when bad debt levels are set to rocket. Tom Brown reports.
08 Apr 2021 -
Rare names to fill post-Easter pipeline
Esoteric names from the FIG market are expected to fill the post-Easter issuance pipeline to take advantage on the constructive market conditions on offer.
08 Apr 2021 -
Wide swap spreads fuel white hot dollar mart
The SSA dollar bond market sprang into life this week with a slew of impressive deals. With swap spreads yawning wider at the short end and a fairly flat curve to five years, borrowers could soon be issuing sub-Libor deals in the belly of the curve.
08 Apr 2021 -
Where there’s a will there’s an SLB
Banks shouldn’t let conceptual considerations stand in the way of them issuing sustainability-linked bonds.
08 Apr 2021 -
SDRs: better late than never
The announcement this week that the IMF is on its way to issuing a further $650bn of special drawing rights, providing central banks with extra foreign currency liquidity, should not be criticised for being too little, too late. It marks a much needed return to multilateralism, something that the developing world will benefit from.
08 Apr 2021 -
KfW EUR4bn 0% Jun 29 green bond
08 Apr 2021 -
ADB USD5bn 1% Apr 26
08 Apr 2021 -
Portugal EUR4bn 0.3% Oct 31
08 Apr 2021 -
Commercial Bank of Qatar kicks off second quarter
Commercial Bank of Qatar kicked off the second quarter with its first Swiss deal of the year. It was joined by New York Life, which raised Sfr475m as it benefited from its two triple-A ratings.
08 Apr 2021 -
Portugal opts for ‘daring’ pricing approach with new 10 year bond
Portugal syndicated a new 10 year bond on Wednesday, and drew parallels to deals from Italy and Spain deals earlier in the year as it aimed for a small new issue premium and an high quality order book rather than one of colossal size. But in order to avoid huge drops in the book by slashing the spread, as Italy and Spain had done, Portugal began the price discovery process at a tight level.
08 Apr 2021 -
Macquarie Bank GBP400m 1.125% Dec 26 senior
08 Apr 2021 -
Santander Consumer Bank EUR500m 0.125% Apr 26 senior
08 Apr 2021 -
Mizuho Financial Group EUR750m 0.184% Apr 26 / EUR750m 0.843% Apr 33 senior
08 Apr 2021 -
BNP Paribas EUR1.25bn 0.25% 6NC5 bail-in senior
08 Apr 2021 -
Gatwick senior gets soaring demand as A rated names hit euros
The short Easter week saw a timid showing of new high grade corporate issuance in the European market but investors snapped up the trades that were on screens.
08 Apr 2021 -
Banco Santander GBP600m 1.5% Apr 26 bail-in senior
08 Apr 2021 -
Pension funds eye riskier CLO tranches
A growing number of pension funds are turning their attention to the riskier part of the CLO capital stack in search of extra yields, attracted by the risk-adjusted returns offered by CLO equity and mezz, compared with other fixed income asset classes.
08 Apr 2021 -
BNP Paribas hires for NPL securitization
BNP Paribas has hired a banker from Credit Suisse to work in its non-performing loans team, as the French bank increasingly targets securitization business in the sector.
08 Apr 2021 -
Covered bonds to be first step on FIG's climb up SLB mountain
European banks face tough conceptual and regulatory barriers as they enter the market for sustainability-linked debt. But DCM bankers hope that they can find a simpler solution for issuers by focusing on covered bonds, write Tyler Davies and Bill Thornhill.
08 Apr 2021 -
German fintech Auxmoney secures €250m from Citi, Chenavari
German fintech lender Auxmoney has nabbed another round of funding from Citigroup and Chenavari Investment Managers, receiving €250m in total.
08 Apr 2021 -
Gatwick lands bumper demand in senior outing
Gatwick Airport got a bulging order book for its return to the senior funding market, weeks after the UK airport got chunky demand for its debut subordinated transaction.
08 Apr 2021 -
KfW and CPPIB break spread barriers in red hot dollar short end
KfW and CPPIB Capital achieved super tight pricings in the short end of the US dollar market on Thursday, with the former bringing the first deal with a negative spread to mid-swaps in the currency by a public sector borrower this year.
08 Apr 2021 -
Europe’s beaten-up stocks soar, spurring convertible issuance
With European stocks on a tear ahead of the expected post-Covid economic reopening of the continent later this year, the convertible bond market is expected to be active as companies seek to raise capital to position themselves for the recovery.
08 Apr 2021 -
Comeback kid Röhm lines up par refi
Röhm, the renamed Evonik Specialty Chemicals, is back in the market looking to refinance its 2026 €997m term loan 'B' near par, following a surprisingly strong performance through 2020.
08 Apr 2021 -
CEB nabs pricey SIB while Andalucia makes sustainability debut
The Council of Europe Development Bank hit the market for €500m on Thursday, with a pricey bond carrying a social inclusion bond label. On the same day, Andalucia sold its first ever sustainability bond.
08 Apr 2021 -
Investors turn tough on IPOs after Deliveroo horror show
IPO sellers are keen to revive the market in Europe after Deliveroo’s disastrous debut last week. But investors, with the food delivery company’s share price collapse still fresh in their minds, are pushing banks on valuations for new listings, reports Sam Kerr.
08 Apr 2021 -
Moves in Brief — April 9, 2021
Powell returns to SEB for expanded job — BNPP team quits for boutique — HSBC returns Horsburgh to UK — NatWest promotes Plan — ICBC FI boss moves on
08 Apr 2021 -
Merck spin-off Organon launches $4.5bn bond financing
Organon, the spin-off from US pharma company Merck, has launched a bond leg of its financing, which will establish the unit as a separate firm with its own capital structure, while funding a $9bn dividend to its former parent. The firm was initially offering $4.5bn-equivalent across secured and unsecured bonds, with a bias to the deeper dollar market, but scaled this up during syndication to allow it to strip out bank debt.
08 Apr 2021 -
KPN bonds widen 80bp on buyout rumour
KPN, the Dutch telecoms company, saw its bond spreads swing out on Thursday, on renewed reports that private equity firms are lining up to buy the company.
08 Apr 2021 -
Reset wave helps NoChu cut CLO book
Record levels of resets in the CLO market on both sides of the Atlantic are helping NorinChukin Bank, once the anchor investor for many triple-A tranches, slim down its investment portfolio in the asset class. Fortunately, new big buyers are stepping up at the top of the capital structure, and on less onerous terms than NoChu demanded.
08 Apr 2021 -
TI Fluid adds unsecured HY layer
TI Fluid Systems, an auto parts company, is marketing its first unsecured debt, a €600m eight year non-call three, which it plans to use to repay part of its secured debt. It has also launched repricing on this loan, looking to cut margins and reset Euribor floors to market standard levels.
08 Apr 2021 -
BNP Paribas bankers in Spain leave for boutique firm
A group of BNP Paribas bankers in Spain have jumped ship to join boutique firm Beka Finance, according to market sources. One person familiar with the situation said that the French bank will refill these roles in due course.
08 Apr 2021 -
Athora refis sub-benchmark tier two
Athora Netherlands returned to the market after almost three years away on Thursday, raising €300m of tier two paper for the first time since its takeover by its Bermuda-based parent.
08 Apr 2021 -
ECB struggles with covered bonds, as do all investors
The European Central Bank's covered bond purchases remained weak in March and, with issuance expected to stay anaemic for the foreseeable future, it will struggle to prevent its portfolio from shrinking. While this is positive for spreads, returns this year have been abysmal and, in the absence of supply, investors are being squeezed out.
08 Apr 2021 -
LF Bank makes most of quiet yet constructive window
Lansforsakringar Bank (LF Bank) enjoyed the sole attention of the market on Thursday as it placed the day's only senior bond in euros. With market conditions constructive, bankers expect more esoteric names could follow.
08 Apr 2021 -
Electric vehicle maker Li Auto charges $750m CB
Chinese electric vehicle manufacturer Li Auto has raised $750m from its debut convertible bond, pricing the deal at the investor-friendly end of the marketed range.
08 Apr 2021 -
First SSA green bond fund would buy SLBs
NN IP has launched the world’s first green bond fund dedicated to sovereign, supranational and agency bonds. GlobalCapital spoke to Douglas Farquhar, client portfolio manager at NN IP, about the SSA green bond market.
08 Apr 2021 -
HSBC brings back Horsburgh for UK role
HSBC is relocating the regional head of its leveraged and acquisition finance (LAF) business from Hong Kong to London to help implement its UK strategy.
08 Apr 2021 -
BOAD president seeks to bolster bank finances in aim to support regional recovery
Development banks across the world — and especially those in Africa — have proven to be indispensable sources of relief during the last year. Though Africa has a wealth of challenges to economic recovery, the West African Development Bank, also known as Banque Ouest Africaine de Développement (BOAD), has high ambitions for the year ahead. The bank’s president Serge Ekué spoke to GlobalCapital about these ambitions, including an imminent capital raise.
08 Apr 2021 -
Sweden’s Hemnet launches IPO
Hemnet, the Swedish online property marketplace, has launched the marketing process for an IPO on the Nasdaq Stockholm exchange.
08 Apr 2021 -
Tencent-backed WeDoctor eyes Hong Kong listing
We Doctor Holdings, which operates Chinese healthcare platform WeDoctor, is seeking approval for a Hong Kong IPO.
08 Apr 2021 -
BlackRock signs ESG ‘milestone’ loan tied to employee equality
BlackRock has signed a $4.4bn revolving credit agreement linked to gender and racial diversity metrics, becoming one of the most prominent companies globally to use key performance indicators focused on staff equality in its main bank line.
08 Apr 2021 -
KfW prints biggest non-sovereign green bond
KfW hit the market with an impressive green bond this week, raising a record €4bn of eight year paper and paying only 1bp of new issue concession to do so.
08 Apr 2021 -
Greater China loan momentum builds as low pricing, liquidity boost interest
Greater China issuers are eagerly turning to the international loan market again for funding, encouraged by low pricing and flush liquidity to refinance debt early and raise new money. But there are still many roadblocks, with banks cautious about predicting a quick recovery to pre-Covid levels. Pan Yue reports.
08 Apr 2021 -
FAF squeezes pricing with internationally rated ABS
China’s Fortune Auto Finance Co launched its first internationally rated auto loan ABS transaction this week, pricing the senior portion of the Rmb2.5bn ($381.5m) deal at a competitive spread.
08 Apr 2021 -
Rare jumbo Tencent block leaves investors wanting more
Investors put in a staggering $60bn of orders for an accelerated offering of Tencent Holdings’ stock on Wednesday, a deal that saw Dutch internet company Prosus taking home HK$114.17bn ($14.67bn) from a record-breaking overnight share sale. Jonathan Breen reports.
08 Apr 2021 -
Opdenergy to float in Spain
Renewable energy IPOs are being launched thick and fast in Spain despite the recent selloff of green energy stocks.
08 Apr 2021 -
Karmic justice for vaccine queue jumpers
Hong Kong has now vaccinated half a million people, after rolling its vaccine out to all comers last month. There have been a few hiccups – the discovery of packaging defects caused a temporary halt to the AstraZeneca jab — but most people have now had the first of their required two shots.
08 Apr 2021 -
Singtel returns to home market with first perp
Singapore Telecommunications (Singtel) sold a subordinated perpetual bond in the Singapore dollar market this week, marking its return to the currency after more than a decade, as well as its first perp.
08 Apr 2021 -
On a Trip: Travel company kicks off HK listing
Trip.com Group has launched bookbuilding for its HK$10.5bn ($1.35bn) secondary listing in Hong Kong, testing investor appetite amid growing pains for the pandemic-hampered travel industry and as the performance of recent IPO debuts in the city fizzles.
08 Apr 2021 -
Powell to return to SEB after IFAD spell
Ben Powell is set to return to his old stomping ground at SEB after 18 months as treasurer for the International Fund for Agricultural Development.
08 Apr 2021 -
Asia’s capital markets: in for a rough ride
Asia’s capital markets had a hot first quarter, with volumes soaring across both DCM and ECM. Momentum still appears strong — but market participants should brace themselves for a tough time ahead.
08 Apr 2021 -
Redco debuts in sustainability market
Redco Properties Group raised $220m on Wednesday from its first sustainability bond.
08 Apr 2021 -
UOB uses senior, tier two combo for sustainability bond debut
Singapore’s United Overseas Bank sold its debut sustainability bond on Wednesday, raising $1.5bn and notching a number of other firsts with its deal. Morgan Davis reports.
08 Apr 2021 -
Arg, Mex seek support for 'forgotten' middle-income countries
Mexico’s deputy finance minister Gabriel Yorio told GlobalCapital on Wednesday that a block of Latin American countries was forming to ensure that the plight of middle-income economies was not forgotten as the world looks for ways to alleviate financial pressures on developing countries.
08 Apr 2021 -
Retailer TEDi launches Schuldschein
German retailer TEDi has launched a Schuldschein, in the first deal to hit the market since the Easter break.
07 Apr 2021 -
CLOs can preserve investment flexibility despite growth of ESG limits
CLOs have 'by nature' a limited exposure to the industries commonly excluded under ESG criteria, meaning their investment flexibility will be preserved, despite the exclusions appearing in more and more deal documents. This bodes well for the growth of ESG screening in the US CLO market, which has lagged behind other markets, with only 10 deals so far featuring the language, according to Deutsche Bank.
07 Apr 2021 -
US Securitization Awards — shortlist revealed
GlobalCapital is pleased to present the shortlists for our US securitization awards — thanks to everyone submitting nominations through our survey, or highlighting interesting deals, notable issuers or capable counterparties to us directly.
07 Apr 2021 -
Citi hires covered analyst from Barclays as Commerzbank loses one
Citi has filled the covered bond and SSA research analyst spot that was vacated by Michael Spies when he moved to DCM. Meanwhile, Commerzbank has lost a research analyst.
07 Apr 2021 -
ICBC’s financial institutions head moves on
Iqbal Nasim, head of financial institutions at ICBC (London), will leave the bank in the middle of April to set up a desk at a smaller Asian lender.
07 Apr 2021 -
A-bracket corporates hit Europe’s bond market
Europe’s high grade corporate bond market was populated with well rated issuers on Wednesday, as triple-B borrowers took a cautious approach and stayed away after the Easter weekend.
07 Apr 2021 -
Debut Finnish issuer enters auto ABS market
Debut Finnish issuer LocalTapiola Finance has mandated BNP Paribas for its first auto ABS transaction, bringing a single offered tranche with a pre-set 70bp coupon over one-month Euribor on offer.
07 Apr 2021 -
Crisis at Credit Suisse could propel Meissner's rise
Christian Meissner, who only joined Credit Suisse in the autumn, could be about to help steer it through its moment of crisis, writes David Rothnie.
07 Apr 2021 -
ELFA, LMA to publish ESG guidance on lev loans
The European Leveraged Finance Association and the Loan Market Association are teaming up to produce guidance for incorporating ESG criteria into leveraged loan terms, with a timeline to publish standards by the end of April. The aim is to provide the infrastructure for the leveraged loan market to adopt ESG standards more widely.
07 Apr 2021 -
KfW lines up at short end of hot dollar mart
KfW will be the next public sector issuer joining the action in the dollar bond market. It has picked banks for a two year bond, taking advantage of hefty swap spreads at the short end of the curve. The trade follows a slew of longer dated deals on Wednesday.
07 Apr 2021 -
Prosus offloads $14.7bn Tencent block
Dutch internet company Prosus is looking to pocket up to HK$114.17bn ($14.67bn) from an accelerated sale of shares in Tencent Holdings.
07 Apr 2021 -
Portugal brings in spread by just 1bp with ‘transparent’ pricing process
Portugal began the price discovery process for its new 10 year syndicated bond on Wednesday close to fair value in an effort to give as much clarity to investors as possible on the final level, according to lead managers.
07 Apr 2021 -
OSFI cuts Canadian covered bond limit
Canada’s Office of the Superintendent of Financial Institutions has removed the temporary increase of the covered bond issuance limit mirroring the Bank of Canada’s earlier decision to remove covered bonds as an eligible asset for repo funding.
07 Apr 2021
