Leveraged/non-investment grade

  • Crisis Suisse and opportunity

    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.

  • Deutsche Telekom dials down under

    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.

  • IMF ramps up focus on climate, launches innovative database

    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.

  • Pepp pace increase still to come

    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.

  • Funding scorecard: French agencies

    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.

  • 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.

  • Hardware store Obi launches Schuldschein

    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.

  • Dutch metals firm AMG reaps benefits of EV surge

    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.

  • Wendel links loan to female leadership

    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.

  • EU seeks up to €5bn for EFSM programme

    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

  • China policy round-up: Beijing cracks down on regional financial institutions, Hainan FTP access rules ease up, Guangzhou reveals ambitious GBA development plan

    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.

  • Dongfeng Nissan parks new ABS amid yield fall

    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.

  • KDIC takes W149bn from Woori Financial block

    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.

  • EIB makes CNH Climate Awareness Bond debut

    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.

  • Kores drills into dollar market

    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.

  • UOB appoints new chief sustainability officer

    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.

  • Mexico proves 20 year worth to continue proactive LM strategy

    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.

  • Suriname creditors back latest debt deferral

    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.

  • Marketplace lenders break into auto lending

    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.

  • M&A surge cannot slake debt markets’ thirst for deals

    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.

  • EU reboots NPL rules as bad debt looms

    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.

  • Rare names to fill post-Easter pipeline

    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.

  • Wide swap spreads fuel white hot dollar mart

    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.

  • SDRs: better late than never

    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.

  • Commercial Bank of Qatar kicks off second quarter

    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.

  • Portugal opts for ‘daring’ pricing approach with new 10 year bond

    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.

  • Pension funds eye riskier CLO tranches

    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.

  • 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.

  • Covered bonds to be first step on FIG's climb up SLB mountain

    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.

  • Gatwick lands bumper demand in senior outing

    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.

  • Europe’s beaten-up stocks soar, spurring convertible issuance

    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.

  • Comeback kid Röhm lines up par refi

    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.

  • Investors turn tough on IPOs after Deliveroo horror show

    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.

  • Moves in Brief — April 9, 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

  • Merck spin-off Organon launches $4.5bn bond financing

    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.

  • KPN bonds widen 80bp on buyout rumour

    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.

  • 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.

  • TI Fluid adds unsecured HY layer

    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.

  • BNP Paribas bankers in Spain leave for boutique firm

    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.

  • Athora refis sub-benchmark tier two

    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.

  • ECB struggles with covered bonds, as do all investors

    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.

  • LF Bank makes most of quiet yet constructive window

    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.

  • First SSA green bond fund would buy SLBs

    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.

  • HSBC brings back Horsburgh for UK role

    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.

  • BOAD president seeks to bolster bank finances in aim to support regional recovery

    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.

  • Sweden’s Hemnet launches IPO

    Sweden’s Hemnet launches IPO

    Hemnet, the Swedish online property marketplace, has launched the marketing process for an IPO on the Nasdaq Stockholm exchange.

  • Greater China loan momentum builds as low pricing, liquidity boost interest

    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.

  • FAF squeezes pricing with internationally rated ABS

    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.

  • Rare jumbo Tencent block leaves investors wanting more

    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.

  • Opdenergy to float in Spain

    Opdenergy to float in Spain

    Renewable energy IPOs are being launched thick and fast in Spain despite the recent selloff of green energy stocks.

  • 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.

  • Singtel returns to home market with first perp

    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.

  • On a Trip: Travel company kicks off HK listing

    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.

  • Asia’s capital markets: in for a rough ride

    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.

  • Arg, Mex seek support for 'forgotten' middle-income countries

    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.

  • CLOs can preserve investment flexibility despite growth of ESG limits

    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.

  • US Securitization Awards — shortlist revealed

    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.

  • A-bracket corporates hit Europe’s bond market

    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.

  • Debut Finnish issuer enters auto ABS market

    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.

  • ELFA, LMA to publish ESG guidance on lev loans

    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.

  • KfW lines up at short end of hot dollar mart

    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.

  • OSFI cuts Canadian covered bond limit

    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.

more leveraged/non-investment grade