Ex-Morgan Stanley banker joins SC Lowy

Hong-Kong-headquartered bank SC Lowy has hired Jonathan Graber for its trading team in London.

22 Jan 2021

UKEF backs biggest overseas infrastructure financing for Egypt rail project

UK Export Finance, the UK's export credit agency, has provided its largest ever overseas infrastructure guarantee to support the construction of two new monorails in Egypt. JP Morgan is leading a group of commercial lenders in providing the funding.

22 Jan 2021

Land NRW EUR1.5bn 0.2% Jan 51

22 Jan 2021

Inauguration snack, stimulus plan under attack, on class people look back

This week in Keeping Tabs: disagreement over stimulus in the US, a treat for the end of Trump, and how people present their backgrounds.

22 Jan 2021

EBRD USD2bn 0.5% Jan 26

22 Jan 2021

Momentum builds for AUTO1 IPO ahead of bookbuild

Books are set to open on the IPO of AUTO1, the online marketplace for second hand cars, next week with the deal garnering good momentum in the pre-deal education process, according to sources close to the deal.

22 Jan 2021

InfraVia injects SDG into equity bridge

Infravia Capital Partners, the French private equity firm, has amended an equity bridge facility to make it align with the UN’s Sustainable Development Goals. Margins are tied to the ESG performance of its fund’s investments, following the lead of EQT and Eurazeo.

22 Jan 2021

EC pledges to ‘move faster’ on resolution reforms in drive for Banking Union

The European Commission is looking to fast-stream work on reforming the EU’s crisis management framework this year, given the lack of political consensus on other issues relating to the Banking Union.

22 Jan 2021

Global banks lead dollar funding blitz

Four US global banking titans roared out of earnings blackout to raise more than $20bn of debt this week, issuing deals either side of president Joe Biden’s inauguration.

22 Jan 2021

JBIC to return to sterling market after long absence

The Japan Bank for International Cooperation has picked backs for a sterling five year benchmark, replacing its last bond in the currency — a trade issued in February 2014 that matured in December 2020.

22 Jan 2021

Credit Suisse's SSAF selects seven

Credit Suisse has made seven appointments within its sustainability strategy, advisory and finance (SSAF) unit:. Five are external hires while two come from its own investment bank.

22 Jan 2021

DZ Hyp readies its first covered deal of 2021

DZ Hyp is preparing to print its first covered bond of the year. The deal could be launched as soon as Monday, which would allow the German lender to get its business done ahead of an expected EU deal for the Support to Mitigate Unemployment Risks in an Emergency (SURE) programme.

22 Jan 2021

Do & Co prints debut convertible

Austrian catering services company Do & Co has issued a €100m convertible bond to shore up its balance sheet and fund investment opportunities once an economic recovery from the pandemic materialises.

22 Jan 2021

GlobalCapital ECM awards: polls open

GlobalCapital has launched the process to decide the winners of our Equity Capital Markets Awards for 2020. The results will be announced at the end of March.

22 Jan 2021

Altitude Infrastructure gets €266m loan funding

Altitude Infrastructure, the French telecoms company, has signed a €266m credit facility, which it will use for two fibre optic networks.

22 Jan 2021

Caffil to issue social covered bond private placements

Caffil plans to issue privately placed covered bonds from its social framework, which secures financing for French hospitals. The longer maturities on offer will diversify from those targeted in its benchmark deals and more closely match its loan liabilities, as well as fulfilling investor needs.

22 Jan 2021

Primavera Capital nets $360m from Spac IPO

Primavera Capital Acquisition Corp, a so-called blank cheque company, has raised $360m from a larger-than-expected New York Stock Exchange IPO that has added further momentum to the increasingly hot asset class.

22 Jan 2021

Orient Overseas, healthcare duo tap Hong Kong ECM

Orient Overseas (International) has scooped up HK$932.5m ($120.3m) from a top-up placement, increasing the deal on strong anchor investor demand. Two other Hong Kong-listed companies, both from the healthcare sector, also turned to investors on Thursday.

22 Jan 2021

Amaggi hits Lat Am sweet spot with sustainability bond

Bond bankers said that Brazilian agribusiness company André Maggi (Amaggi) was the ideal credit for the market’s current tastes as the borrower notched a hefty oversubscription and tightening for a debut sustainability bond on Thursday. A tier two deal from Brazilian lender Banrisul confirmed that high yield appetite in Lat Am remained robust.

22 Jan 2021

Investors flock to PFC for yield pickup

Power Finance Corp netted $500m from a bond that was printed at a negative new issue premium, but still attracted investors for the yield it offered compared to peers.

22 Jan 2021

ADB readies long-awaited Panda return

The Asian Development Bank (ADB) has hired banks to arrange a roadshow for its first Panda bond in over a decade, to be launched after Chinese New Year.

22 Jan 2021

QNB taps CNH liquidity for Rmb1.5bn bond

Qatar National Bank, a frequent issuer in the offshore renminbi bond market, has sold its first deal of the year in the currency, raising Rmb1.5bn ($232m).

22 Jan 2021

China policy and markets round-up: Beijing sanctions former Trump officials, PBoC tightens grip on non-bank payment market, profit growth slows at central SOEs

In this round-up, China imposes sanctions on 28 US government officials who were part of the Donald Trump administration, the central bank increases oversight of non-bank payment firms, and profit growth at central government-owned enterprises suffers from the Covid-19 pandemic.

22 Jan 2021

Sunac reprices curve with $1.1bn outing

Chinese property developer Sunac China Holdings has managed to reprice its secondary curve by raising $1.1bn from tightly priced bonds.

22 Jan 2021

Mongolian Mortgage Corp pulls bond amid political turmoil

Mongolian Mortgage Corp's (MIK) dollar bond market return was cancelled on Thursday after pandemic-related protests forced the country's prime minister to resign.

22 Jan 2021

Duo provides green loan for Cityplaza One acquisition

Standard Chartered and United Overseas Bank have provided a HK$5.29bn ($682m) green loan to support a Gaw Capital Partners-led consortium’s acquisition of Cityplaza One.

22 Jan 2021

EM primary thrives but rates fears simmering

Emerging markets issuers across CEEMEA and Latin America once again triumphed in primary bond markets this week, with several sovereigns and corporates notching record low costs of funding. But there are signs that the direction of US rates is playing on investors’ minds, write Mariam Meskin and Oliver West.

21 Jan 2021

Sovcombank USD300m 3.4% Jan 25 social bond

21 Jan 2021

National Commercial Bank USD1.25bn 3.5% PNC6 AT1

21 Jan 2021

Turkey USD1.75bn 4.75% Jan 26 USD1.75bn 5.875% June 31

21 Jan 2021

Bahrain USD500m 4.25% Jan 28 USD1bn 5.250% Jan 33 USD500m 6.250% Jan 51

21 Jan 2021

Corporate bond investors 'freaking out' at ECB amid 'unhealthy' market

Europe’s high grade corporate bond investors are sounding the alarm that parts of the market are starting to look frothy, as the European Central Bank on Thursday gave no indication of any slowdown in its relentless bond buying programme. Mike Turner reports.

21 Jan 2021

NCB sells AT1, market anticipates govvie deal

Saudi Arabia’s National Commercial Bank sold an additional tier one bond this week. Some see the trade from the kingdom’s largest financial institution as a prelude to a bond sale by the sovereign, which could happen next week.

21 Jan 2021

Investors put ECB commitment to the test

European Central Bank president Christine Lagarde refused to be drawn into naming a specific spread target that the central bank will defend in a press conference on Thursday but investors may find out for themselves in the wake of the meeting. BTPs sold off sharply after Lagarde spoke, perhaps indicating that the central bank has not done enough to convince investors of its support.

21 Jan 2021

Aircraft lessors crowd to market after monster rally

Companies in the same sector often copy each other, but this year's string of bond issues by aircraft lessors has been exceptional, and is prompted by the sector's credit rehabilitation. Air Lease Corp took the recovery past a new milestone this week.

21 Jan 2021

UK GBP6.5bn 0.875% Jan 46

21 Jan 2021

Cades GBP1.5bn 0.125% Dec 25 social bond

21 Jan 2021

France EUR7bn 0.5% May 72

21 Jan 2021

NWB EUR500m 0% Feb 37

21 Jan 2021

EIB EUR1bn FRN Jan 28

21 Jan 2021

AIIB USD3bn 0.5% Jan 26 sustainable development bond

21 Jan 2021

People moves in brief: January 21, 2021

Mark Soriano joins Natixis — Deutsche's Frazer Ross is taking a sabbatical — Fidelity hires private credit team

21 Jan 2021

Benefit Street Partners prices last minute CLO reset

More managers are coming into the market to take advantage of tighter spreads, and refinance or reset CLOs while new CLO issuance is expected to really take off in the next two weeks.

21 Jan 2021

Direct lenders toughen up as latest Covid wave bites

Several industries once popular with direct lenders have struggled to cope through the coronavirus. Now, direct lenders say they have toughened terms for borrowers from these sectors.

21 Jan 2021

Buyers queue down the aisle for Tesco SLB

Tesco, the UK grocer, made a storming debut in the nascent sustainability-linked bond market on Wednesday, encouraging bankers who already expect corporate issuance using the novel structure to rocket this year.

21 Jan 2021

Banque Fédérative du Crédit Mutuel GBP400m 0.875% Dec 27

21 Jan 2021

Erste Group Bank EUR500m 0.25% Jan 31

21 Jan 2021

Swissie investors target quality not quantity

Swiss franc bond investors are pursuing high quality issues, with Münchener Hypothekenbank harnessing this demand to price a tap of its green preferred senior bond 12bp through fair value this week.

21 Jan 2021

Fresh hopes for euro FIG supply as spread backdrop improves

Banks are taking another look at funding conditions in the euro market after a strong week of recovery for senior debt spreads.

21 Jan 2021

Austrians keep quiet euro market ticking

A pair of Austrian banks kept a quiet senior euro market ticking over earlier this week. Erste targeted price over size with a new senior deal, while Oberbank attracted a granular orderbook on its first visit to the non-preferred market.

21 Jan 2021

High grade corporates get bumper demand despite ECB meeting

A trio of European corporate issuers brought bond deals on Thursday, shrugging off the potential distraction of a European Central Bank meeting.

21 Jan 2021

France smashes 50 year as EU preps first SURE deal of 2021

France stole the limelight in the euro public sector bond market this week as it set new records for 50 year benchmarks in terms of size, demand and yield. But next week all eyes will be firmly fixed on the EU, which is set to bring its first bond of the year under its Support to Mitigate Unemployment Risks in an Emergency (SURE) funding programme.

21 Jan 2021

AA’s £280m bond helps rare debt-lowering LBO

Barclays took out the bridge financing for TowerBrook and Warburg Pincus’s takeover of UK roadside assistance group The AA on Wednesday, selling a £280m five year bond at 6.5%.

21 Jan 2021

Cornerstones go mainstream for European IPOs

Companies are increasingly turning to cornerstone and anchor investors to support their IPOs across the price range before deals are launched. While the phenomenon is common in Asia and the Nordic markets, it has been rarer in UK and most continental European deals until now, but the trend is turning into the norm, reports Sam Kerr.

21 Jan 2021

Soriano surfaces at Natixis

Natixis has hired Mark Soriano, formerly at Barclays, for its capital structure and rating advisory team.

21 Jan 2021

EBRD shows patience to print flat to curve

The European Bank for Reconstruction and Development led the way on a busy Thursday in the SSA dollar market, printing $2bn flat to its curve.

21 Jan 2021

Rekeep opens the racy end

Italian facility management company Rekeep signalled market appetite for the spicier end of high yield this week, issuing a €350m five year non-call two at 7.25%. This will trim the company’s sky high funding costs, paying for the redemption of its 9% 2022s.

21 Jan 2021

ESG securitization: why CLOs are struggling to change colour

Green securitization is firmly on the menu as part of the European Union's push for sustainable investment. But one corner of the market is proving slow to change, despite taking baby steps in that direction.

21 Jan 2021

Land NRW scores with new 30 year ahead of ECB meeting

The State of North Rhine-Westphalia found plenty of demand as it came to the market with a new 30 year benchmark on Thursday, ahead of the European Central Bank’s first monetary policy meeting of the year.

21 Jan 2021

Bruxelles Lambert shrugs off ECB noise, issues new bond

Groupe Bruxelles Lambert, the Belgian investment holding company, found a warm response from the bond market on Thursday, despite the potential distractions of a European Central Bank meeting being held on the same day.

21 Jan 2021

Webuild and United spot window for opportunistic HY taps

Two issuers spotted a window on Thursday for opportunistic high yield issues, as the Crossover index had tightened 9bp on Wednesday and there was a firm tone in other risk assets. Italian construction group Webuild launched a €150m tap of its 2025 note, launched in December, while Balkan telco United Group reopened its 2027s for €100m.

21 Jan 2021

Santander pins corporate finance strategy on ESG

Santander reckons it can harness the power of hydrogen to boost its standing in corporate and investment banking, building on its ESG credentials in similar way to how rivals built supremacy during the internet boom, writes David Rothnie.

21 Jan 2021

Acea and United Utilities lifted by sea of green demand

Utilities Acea and United Utilities Water romped home with ESG-themed bonds in euros and sterling on Thursday. Bankers said investor demand for socially conscious assets was swelling.

21 Jan 2021

Unifin launches exchange, plots new deal

Mexican non-bank lender Unifin Financiera is planning an eight year bond issue of up to $500m, with up to $200m set to come via an exchange offer for existing bonds. But bondholders participating in the exchange are unlikely to receive much by way of increased returns for pushing out their maturities.

21 Jan 2021

Panama, Paraguay pay limited concession as 10 year emerges as sweet spot

Bond markets continue to offer Latin American sovereigns tight pricing down the dollar curve, with Panama and Paraguay on Wednesday becoming the latest pair to price dual tranche deals. But with rates curves having steepened this month amid the expectation of higher rates in the long term, bankers are sensing that the 10 year is becoming the sweet spot on the maturity curve.

21 Jan 2021

Everything rally boosts Europe's blocks market

Stocks have hit new all-time highs in the wake of Joe Biden’s inauguration as US president on Wednesday. Barring any shocks, the bullishness in equity markets is expected to translate into a strong blocks market over the coming weeks and months.

21 Jan 2021

RBC promotes from within as Uden retires

RBC Capital Markets has reorganised its European equity capital markets and corporate broking business following the decision of Darrell Uden to step down at the end of this month.

21 Jan 2021

Capital trades the focus for Aussies in 2021

Westpac kicked off 2021’s Australian financials market on Thursday by launching a new tier two bond. Aussie borrowers are expected to focus on capital trades this year in order to meet their total loss-absorbing capacity (TLAC) requirements with tier two debt.

21 Jan 2021

Gold rush: Russian miners prep IPO plans

Two Russian gold miners are among a number of Russian companies looking at listing possibilities in 2021 capitalising on a strong 2020 for the precious metal.

21 Jan 2021

HSBC team to target MENAT ESG activity

HSBC has created a dedicated sustainable and transition finance team for the Middle East, North Africa and Turkey, as the region tries to make its economies more sustainable.

21 Jan 2021

EIB reboots €STR FRN market with curve extension

The Europe Investment Bank extended the euro short term rate (€STR) floating rate note curve on Wednesday with 2021’s first deal in the format.

21 Jan 2021

Perfect chemistry as investors cheer Ineos’s €4.6bn BP integration package

Investors have enthusiastically backed a €4.6bn financing package for Ineos Quattro, funding the integration of BP’s aromatics and acetyls business into the chemicals conglomerate. Strong demand allowed the company to raise more secured debt than expected, cutting funding costs, and strip out a bank-targeted term loan ‘A’ in favour of a bigger, cheaper, institutional term loan ‘B’.

21 Jan 2021

Investment banks report full pipelines after excellent 2020

Top US bankers are optimistic about their investment banking businesses for the start of 2021, after a stellar 2020 during which their clients rushed to financing markets to help them get through the Covid-19 crisis, and government and central banks provided essential support.

21 Jan 2021

Drop in covered bond supply questioned

The covered bond market is set to experience one of the steepest declines in issuance on record this January. Yet, despite a poor start, bankers still expect a resurgence in the primary market, although extended lockdown restrictions are creating uncertainty.

21 Jan 2021

Hipgnosis Songs Fund returns for more financing

Hipgnosis Songs Fund, the London-listed investment fund focused on music royalties, is embarking on yet another share sale to finance its bulging pipeline of acquisitions.

21 Jan 2021

Goldman lands €1.75bn as bank senior spreads recover

Goldman Sachs won strong demand for a chunky €1.75bn deal in the euro market on Thursday, becoming the first US bank to visit the currency after posting full year results.

21 Jan 2021

Energy firms facing insolvency bank on ABS

Securitization is emerging as the last resort for some US oil and gas companies seeking funding. Banks are deserting the equity and reserve-based lending markets they rely upon. But investors have proved eager to deploy capital in well-structured shale deals that can yield as much as 6%, meaning the ABS market may provide a lifeline for the struggling energy firms, writes Jennifer Kang.

21 Jan 2021

IG lines up $906m of financing for Tastytrade buy

IG Group, the UK derivatives trading platform, plans to use $906m-equivalent in debt and equity to finance a $1bn acquisition of US brokerage Tastytrade.

21 Jan 2021

InPost sets range on IPO that could reach €3.2bn

InPost, the Polish provider of postal lockers, has set a price range for its IPO on the Amsterdam stock exchange, valuing it at €8bn at the top.

21 Jan 2021

What price bonds in the Biden era?

A new era has begun in the US, with the swearing in of Joe Biden as president. For America and the rest of the world it is a sea change in leadership style and political substance.

21 Jan 2021

China’s RLX draws in $1.4bn from bigger US IPO

Chinese vape company RLX Technology raised $1.4bn from its US listing this week, pricing the deal above the marketed range after a huge turnout from investors.

21 Jan 2021

BYD nabs $3.6bn from new share placement

Chinese car manufacturer BYD has closed Hong Kong’s largest primary share placement in more than half a decade, raising HK$29.9bn ($3.86bn). The issuer tapped the market as the local benchmark Hang Seng Index hit a record high, getting strong demand from mainland investors. Jonathan Breen reports.

21 Jan 2021

People news in brief: January 21, 2021

JP Morgan names China JV CEO — Credit Suisse forms Japan ECM unit — MUFG hires markets research lead — Nomura bulks up in wealth management

21 Jan 2021

SJM gets $10bn book for $1bn bond debut

Macau casino operator SJM Holdings generated a $10bn-plus book for its $1bn debut bond this week, despite tight pricing and the lack of US investors. Its credit profile, the transaction’s timing and a comprehensive marketing strategy worked in its favour.

21 Jan 2021

Investors plug into SK Battery’s $1bn green bond

SK Battery America sold a $1bn green bond this week, overcoming hurdles involving concerns about recent downgrades, and a legal battle with a competitor. Morgan Davis reports.

21 Jan 2021

Mphasis to set new record for LBO loan size from India

Asia’s loans bankers are salivating over the prospects of working on the largest ever leveraged buyout loan from India. Blackstone is looking to exit from IT services company Mphasis in a deal that has seen plenty of interest from other private equity firms. Pan Yue reports.

21 Jan 2021

Leaving office: The misery of a long handover

There are few unpleasant things that can trump having to watch someone else take your job.

21 Jan 2021

Korea Southern Power adds to green market

Government-owned Korea Southern Power Co marketed a green bond to dollar buyers on Wednesday, netting $450m from the trade.

21 Jan 2021

Fosun goes offshore for $500m

Chinese conglomerate Fosun International went to the international debt market on Wednesday for a $500m deal.

21 Jan 2021

IIF jumps on ESG bandwagon with debut sustainable bond

Indonesia Infrastructure Finance raised $150m from its maiden sustainability bond on Wednesday that proved popular among investors looking to get their hands on the rare southeast Asian credit.

21 Jan 2021

Cédulas spreads to tighten as asset quality weakens

The Spanish government’s decision to extend laws that prohibit tenant evictions is a blow for the credit strength of the country's covered bond and mortgage securitizations. But even so, supply scarcity will continue to have more influence on Cédulas valuations and spreads, which have already tightened this year and may well have further to go.

21 Jan 2021

Moody’s rates first aircraft ABS in 10 years

Castlelake priced the first aircraft securitization since the pandemic on Wednesday, kindling hopes of revival in a battered sector most severely hit by Covid-19. The deal is also the first aircraft transaction that Moody’s has rated in more than 10 years, following a change in rating methodology by the company.

20 Jan 2021

CSAM prices largest CLO in two years

Credit Suisse Asset Management (CSAM) has priced the largest CLO in the past two years, a $850m transaction with a three year reinvestment period called Madison Park Funding XLVIII.

20 Jan 2021

Dollar market hot for SSAs across curve as CPPIB looks long

CPPIB Capital hit screens on Wednesday for a 10 year benchmark, confident that there is demand at that tenor despite a recent rush of similar deals.

20 Jan 2021

Cades brings first ever SSA sterling social bond

Caisse d’Amortissement de la Dette Sociale (Cades), the agency responsible for financing and amortising French social security debt, printed a £1.5bn social bond on Wednesday — the first ever deal in that currency and format from a public sector borrower.

20 Jan 2021

Brandenburg undersubscribed for 25 year deal as Land NRW hits screens

The State of Brandenburg failed to reach full subscription for a new 25 year trade on Wednesday as it priced at an exceptionally tight level to its secondary curve.

20 Jan 2021

Vonovia tests demand for long dated corporate debt

Vonovia, the German property company, brought a 20 year bond on Wednesday which gave further proof that corporate issuers looking to offer duration will find a willing audience.

20 Jan 2021

New year brings relief to international Schuldschein arrangers

The decline in international and debut Schuldschein issuance last year had a disproportionate impact on non-German bank arrangers. But this year’s bright start has given them a new lease of life.

20 Jan 2021

Acea and Bruxelles Lambert ready deals for ECB day

Deals are lining up in Europe’s high grade corporate bond market and bankers say even Thursday's European Central Bank meeting will not put a dent in primary demand on the day.

20 Jan 2021

Huge demand for SLB from ambitiously green Tesco

Tesco, the UK grocer, made a storming debut in the sustainability-linked bond market on Wednesday, encouraging bankers who already expect corporate issuance using the novel structure to rocket this year.

20 Jan 2021