Leveraged/non-investment grade

  • Zhenro Services, Greentown seal HK listings

    Zhenro Services, Greentown seal HK listings

    Property managers Zhenro Services Group and Greentown Management, along with developer Ganglong China, all priced IPOs this week, albeit with different responses from the market.

  • Property names rake in $1.5bn in bonds

    Property names rake in $1.5bn in bonds

    Chinese property companies Kaisa Group Holdings, Yango Group Co and Overseas Chinese Town (Asia) Holdings raised a combined $1.5bn from their bonds on Wednesday.

  • Huawei: the Schuldschein deal that never was

    Huawei: the Schuldschein deal that never was

    Huawei Technologies, sanctioned by the US and now having its participation in the UK's 5G network questioned by the government, looked into raising hundreds of millions of euros in the Schuldschein market two years ago, But concern that buyers would freeze at a groundswell of negative news, whipped up in part from the US, scared the Chinese company off taking the risk. Its increasing isolation in major European countries means it is unlikely to use its capital markets any time soon.

  • PTPN seeks consent for debt restructuring

    PTPN seeks consent for debt restructuring

    Indonesia’s Perkebunan Nusantara III (PTPN) is seeking lenders’ go-ahead for a debt restructuring plan, after missing the principal payment on a $390.6m loan at the end of June.

  • VTB gives new jobs to Hutt, Richardson

    VTB gives new jobs to Hutt, Richardson

    Nick Hutt has been appointed chairman of the management board at VTB Bank (Europe), and Mark Richardson will replace him as chief executive of VTB Capital’s UK arm, subject to regulatory approvals.

  • HY issuance heats up in last weeks before summer

    HY issuance heats up in last weeks before summer

    High yield bond issuance is coming thick and fast in Europe, with new deals for Autodis, Avantor and Diebold Nixdorf announced on Tuesday and Verisure following on Wednesday. Banks have cleared most of their pre-Covid bridge books, and the summer break is nearly here, giving issuers wanting to lock in a refinancing a short window to hit.

  • Blincoe takes over large corporates and institutions

    Royal Bank of Scotland's structured finance head Andrew Blincoe has become head of large corporates and institutions at RBS Commercial Banking, as well as keeping his existing responsibilities as structured finance head, following the departure of Laura Barlow.

  • France snags €3bn with linker

    France snags €3bn with linker

    France hit screens with a 15 year inflation-linked bond on Wednesday, raising €3bn with its first syndicated linker since 2018, capitalising on growing demand for inflation-linked products.

  • Sodexo shrugs off headlines with €6.2bn of demand

    Sodexo shrugs off headlines with €6.2bn of demand

    Sodexo, the French food service and facilities management firm, got bumper demand for its €1bn no-grow dual tranche bond issue on Wednesday, a day after reporting a 30% drop in revenue and weeks after it shocked the US private placement market by saying it would repay around $1.6bn of debt early because it thought it could do better in other financing markets.

  • Conditionality at stake on EU recovery fund

    Conditionality at stake on EU recovery fund

    The EU’s proposed recovery fund is expected to be presented to the summit of European leaders on July 17-18 with the size unchanged from the proposed €500bn of grants and €250bn of loans, although the EU budget is likely to be slimmed down, according to sources.

  • Kookmin pays tiny NIP for social first as investor diversification scrutinised

    Kookmin pays tiny NIP for social first as investor diversification scrutinised

    Kookmin Bank launched its debut euro covered bond on Wednesday, pricing the transaction flat to where its higher rated compatriot, Korea Housing Finance Corporation (KHFC) would have been expected to come. The deal was said to have attracted additional demand due to its social theme, spurring hopes that more similar themed issuance would follow. However some issuers are not convinced the diversification appeal of social bonds is material enough to pursue.

  • CCR Re grabs investor attention on T2 debut

    CCR Re grabs investor attention on T2 debut

    CCR Re, the French reinsurer, debuted in the bond market with a tier two on Wednesday, executing a strong transaction on the back of intensive investor engagement combined with favourable market conditions.

  • NEPI nabs green deal, attracts ECB bid

    NEPI nabs green deal, attracts ECB bid

    Central and Eastern European commercial real estate operator NEPI Rockcastle issued a green bond on Tuesday, attracting new investors to its debt.

  • TwentyFour rolls out Oat Hill deal as ABS market calms

    TwentyFour rolls out Oat Hill deal as ABS market calms

    TwentyFour Asset Management has mandated Santander as arranger for Oat Hill 2, a £485m buy-to-let (BTL) RMBS deal, rolling the portfolio of Oat Hill 1 into the new deal after the coronavirus outbreak meant the issuer was unable to call it at the first optional redemption date (FORD).

  • UK regulator revises P2A requirements in Brexit transition

    UK regulator revises P2A requirements in Brexit transition

    In a response to feedback from UK financial institutions, the Prudential Regulation Authority has said it will assess the appropriateness of any reduction in Pillar 2A (P2A) requirements so that the buffer provides a fair measure of the risks facing banks as the UK prepares to leave the EU.

  • Banks talk tough on Cocobod terms

    Banks talk tough on Cocobod terms

    Ghana Cocoa Board (Cocobod), which is in the market to refinance a one year $1.3bn loan facility signed in September, is facing troubles according to bankers on the deal, contrary to comments recently made by its chief executive.

  • Impact investor Durreen Shahnaz: ‘we must go beyond social bonds’

    Impact investor Durreen Shahnaz: ‘we must go beyond social bonds’

    Durreen Shahnaz is founder and chief executive of Impact Investment Exchange (IIX), which says it created the world's first social stock exchange. She tells GlobalCapital about how we can rebuild a better economy, with the help of capital markets, after coronavirus.

  • Funding scorecard: supranationals

    This week's funding scorecard looks at the progress supranationals have made in their funding programmes at the start of July.

  • TCL benefits from SBLC for $300m debut

    TCL benefits from SBLC for $300m debut

    TCL Technology Group Co sold its maiden dollar bond on Tuesday, getting a 10 times oversubscribed book at its peak thanks to a standby letter of credit (SBLC) from Bank of China.

  • China bonds: transparency push a clear win

    China bonds: transparency push a clear win

    The Shanghai Clearing House’s decision to give bond issuers insight into the holders of their debt is a smart move. China has enough regulation; what it lacks is information.

  • BoCom Leasing takes $800m from fixed, FRN combo

    BoCom Leasing takes $800m from fixed, FRN combo

    Bank of Communications Financial Leasing Co priced a $800m dual-tranche deal on Tuesday. While it initially wanted to sell just a floating rate note, it added a fixed rate portion too due to investor interest.

  • CMS readies $2.1bn rights issues

    CMS readies $2.1bn rights issues

    China Merchants Securities is planning to tap the Mainland and Hong Kong markets for a pair of rights issues that will raise a combined Rmb14.99bn ($2.13bn).

  • Peter Gleysteen on the future of CLOs after coronavirus

    Peter Gleysteen on the future of CLOs after coronavirus

    Peter Gleysteen is a 40-year veteran of the leveraged lending market and the CEO and founder of AGL Credit Management, which recently priced the largest CLO since the coronavirus pandemic began. He spoke with GlobalCapital about the future of the CLO market and how it is facing up to the challenges of the Covid-19 crisis.

  • Ecuador sets example for EM restructurings, says creditor group

    Ecuador sets example for EM restructurings, says creditor group

    As private creditors continue to resist calls to participate in coordinated debt relief efforts, a group of Ecuador’s bondholders appeared to be insisting that another path was possible as they said the South American sovereign had set a positive precedent for other EM sovereign debt restructurings likely to follow in the Covid-19 era.

  • Chilean NBFI joins Lat Am new issue pipe

    Chilean NBFI joins Lat Am new issue pipe

    Chilean non-bank financial institution Tanner is joining the slew of Latin American companies turning to bond markets as it holds investor calls ahead of a proposed five year amortising note.

  • Thompson & Knight adds trio of MBS attorneys

    Thompson & Knight adds trio of MBS attorneys

    Thompson & Knight has hired three litigation attorneys, Keith Brandofino, Maximiliano Rinaldi and David Mignardi, to bolster the commercial real estate and loan servicing business in the firm’s New York office. All three attorneys join from Kilpatrick Townsend.

  • Maturity issue shows how green debt really functions

    Maturity issue shows how green debt really functions

    Some parts of the market are talking about the benefits of ultra-short, money market debt that has a sustainability theme, while on Tuesday BBVA issued a perpetual green bond, albeit with a call. The viability of both these forms of debt shows that the common perception about green bonds is not quite true.

  • EFSF prices flat to ESM as Cyprus seizes demand for taps

    EFSF prices flat to ESM as Cyprus seizes demand for taps

    The European Financial Stability Facility kicked off its third quarter funding in style as it raised 80% of its borrowing needs for the quarter flat to its sister issuer’s curve. Elsewhere in the euro market on Tuesday, Cyprus saw decent demand as it tapped its 2024s and 2040s.

  • Germany’s public sector issuers lead from the front

    At the end of June GlobalCapital and DZ Bank brought together some of Germany’s leading public sector bond issuers to discuss the impact of the coronavirus pandemic on their capital markets activities. Four months after the crisis began to be felt in Germany, representatives of the country’s development banks and Länder have come through the initial panic and reaction stage and are now beginning to understand more fully the extent of the damage the disease has caused to the economy and just how much their day-to-day lives have changed.

  • HomeServe markets private placements

    HomeServe markets private placements

    UK home emergency and repair company Homeserve has entered the US private placement market, according to sources, looking for at least £125m.

  • Don’t forget about Brexit

    Don’t forget about Brexit

    Equity capital markets are gearing up for a busy autumn and UK companies have been at the forefront of activity in Europe since the coronavirus pandemic began. Bankers and investors have said they fear the disruption a second wave of Covid-19 and volatility surrounding November's US election could bring, but they should not forget either that the UK is edging towards a no-deal Brexit at the end of 2020.

  • France mandates for linker as inflation expectations rise

    France mandates for linker as inflation expectations rise

    France hit screens on Tuesday to announce a new long-dated inflation-linked benchmark at a time when market participants are bracing for the return of inflation due to the vast amount of monetary stimulus and spending by governments in response to the coronavirus pandemic.

  • Global warming temperature scores could radically simplify green investing

    Global warming temperature scores could radically simplify green investing

    CDP, the leading platform through which companies report their carbon emissions, has become the latest organisation to launch a potentially influential system of temperature ratings, so investors can work out how much global warming each company’s plans will theoretically lead to — and hence the overall temperature of a portfolio.

  • Meiji Yasuda offloads Talanx shares after rally

    Meiji Yasuda offloads Talanx shares after rally

    Japan’s Meiji Yasuda Life Insurance Co has sold €125m of shares in Talanx, the German business to business insurer, after the stock rallied by more than 50% from its post-crash lows in March.

  • Empty primary drives IG corporate secondary surge

    Empty primary drives IG corporate secondary surge

    The secondary market for defensive European corporate bonds is on fire, now that new issuance has slowed, but there are growing fears that the rampant rise of coronavirus cases in the US will lead to a correction.

  • Dutch covered bond issuers to reconsider CPT viability

    Dutch covered bond issuers to reconsider CPT viability

    Lower overcollateralisation (OC), tighter spreads and access to the ultra-long end of the curve are likely to cause some Dutch covered bond banks to reconsider whether it is still viable to issue conditional pass through (CPT) deals or follow NN Bank, which recently switched from to soft bullet issuance.

  • Banks must brace for the Covid-19 NPL wave, says Houlihan Lokey

    Banks must brace for the Covid-19 NPL wave, says Houlihan Lokey

    Zam Khan is a managing director in Houlihan Lokey’s Financial Institutions Group where he leads the portfolio and capital advisory practice. He told GlobalCapital about how banks can use financial data to deal with new NPL formations, or risk being engulfed by losses over the next few months.

  • UK university halls CMBS payments deferred after student refund

    UK university halls CMBS payments deferred after student refund

    Noteholder payments have been deferred in a tranche of UK CMBS backed by university halls of residence after the accommodation operator refunded student’s their rent, putting the loan sponsor in the position of having to speculate on demand recovery following the coronavirus outbreak which saw universities shuttered.

  • ECB consultation sparks bank M&A talk once more

    ECB consultation sparks bank M&A talk once more

    The European Central Bank has put the familiar topic of bank consolidation back into the spotlight after its supervisory arm made clear last week that it did not want to stand in the way of well designed deals.

  • Klaveness signs Norwegian sustainable first

    Klaveness signs Norwegian sustainable first

    Klaveness Combination Carriers, a Norwegian shipping company, has signed what it claims to be the first sustainability-linked bank loan for the sector in Norway, as the outlook remains gloomy for global shipping.

  • Lesser spotted CAA dips in for tier two

    Lesser spotted CAA dips in for tier two

    Crédit Agricole Assurances (CAA) added to the subordinated deal flow in the FIG bond market on Tuesday by launching a tier two bond. The French insurer benefitted from the rarity of its appearances in primary markets, and the large deal size meant that although the issuer paid some premium, it "did not leave much value on the table", according to a lead manager.

  • FIG backdrop brings Rabo into AT1 market

    FIG backdrop brings Rabo into AT1 market

    Conditions in the primary FIG bond market have improved of late, tempting European issuers to bring subordinated trades. Rabobank was the latest to make an appearance on Tuesday, adding to the flurry of subordinated deals this week.

  • BBVA brings pioneering green AT1

    BBVA brings pioneering green AT1

    BBVA became the first financial institution to issue green debt in additional tier one (AT1) format on Tuesday, launching a bond with a 6% coupon. The Spanish lender left no premium on the table, according to some market participants.

  • De La Rue raises cash to lead expected busy second half for UK ECM

    De La Rue raises cash to lead expected busy second half for UK ECM

    The UK has been at the forefront of Europe’s equity capital raising wave, as companies respond to the Covid-19 pandemic. De La Rue, which makes passports and banknotes became the latest UK firm to do so with a £100m raise on Monday and sources believe there is plenty more to come.

  • Redefine Properties buys back €117m exchangeable bonds

    Redefine Properties buys back €117m exchangeable bonds

    Redefine Properties, the South African landlord, has completed a tender offer for all of its outstanding €117.2m bonds that are exchangeable into shares in RDI Reit, the London-listed real estate investment trust.

  • Shimao jumps at 10yr tenor for new bond

    Shimao jumps at 10yr tenor for new bond

    Shimao Group Holdings offered bond investors a rare 10 year tenor from the Chinese property industry, pricing the $300m deal inside of fair value.

  • Barclays’ hires Panmure Gordon’s ex-IB head

    Barclays’ hires Panmure Gordon’s ex-IB head

    John Muncey has joined Barclays as vice-chairman of its consumer retail group (CRG) in Europe and the Middle East, while Jamshed Kakalia has been promoted to lead the consumer business in that team.

  • JPM fund exits from Celltrion

    JPM fund exits from Celltrion

    One Equity Partners made its exit from Korea’s Celltrion Healthcare on Monday evening, cashing out of a stock that has rallied by about 97% over the past year.

  • BDO Unibank cashes in on rarity

    BDO Unibank cashes in on rarity

    Philippines issuers continued to add to the bond market this week, with BDO Unibank breaking a three-year hiatus for $600m.

  • Ecuador reaches preliminary debt agreement

    Ecuador reaches preliminary debt agreement

    While Argentina’s back-and-forth attitude to debt negotiations means it still has not reached a deal more than three months after the deadline it had set itself to wrap up the process, Ecuador’s decision to keep investor relations as cordial as possible could see it rewarded with a remarkably swift restructuring of its bonds.

  • Argentina gives hope but creditor reaction crucial

    Argentina gives hope but creditor reaction crucial

    Argentine bonds rallied on Monday after the government surpassed expectations with a new debt restructuring offer. But markets are still waiting on the reaction of the largest bondholders, as Argentina had abandoned negotiations ahead of its updated offer.

  • Shinhan Group funds Covid-19 relief with $500m bond

    Shinhan Group funds Covid-19 relief with $500m bond

    Shinhan Financial Group raised $500m from a Covid-19 resilience social bond on Monday, finding support from investors keen to buy deals sold to help businesses and people impacted by the pandemic.

  • NDB rides on Chinese bank support for tight Panda

    NDB rides on Chinese bank support for tight Panda

    New Development Bank sealed its second Panda bond of the year on Monday. Despite coming out on a ‘miserable’ day for China’s domestic debt market, support from Chinese banks helped the multilateral development bank price a tight deal.

  • Strong markets lure more Lat Am issuers to primary

    Strong markets lure more Lat Am issuers to primary

    Mexican lender Banorte and Colombia’s second largest telecoms company began investor calls on Monday as Latin American borrowers look for funding in the wake of a rally that reawakened issuer interest in bond markets.

  • Investors flock to SIPG's $1bn bond

    Investors flock to SIPG's $1bn bond

    A rally in Hong Kong and China’s equity markets on Monday buoyed sentiment among debt investors too. They pumped in orders of more than $10bn into Shanghai International Port (Group) Co’s dollar bond at the peak.

  • El Salvador to tempt EM buyers down credit curve

    El Salvador to tempt EM buyers down credit curve

    Central American sovereign El Salvador will this week show just how far risk appetite has rebounded in emerging markets as it seeks a long-dated benchmark bond even as an inverted bond curve suggests markets are pricing a high level of stress.

  • Amvig lights up new loan

    Amvig lights up new loan

    Cigarette packaging producer Amvig Holdings has made a rapid comeback to the loan market for a HK$1.35bn ($174m) borrowing.

  • PPP deadline extended, but more needed to avoid credit fallout

    PPP deadline extended, but more needed to avoid credit fallout

    The US government extended the deadline by a month for submitting applications for the Paycheck Protection Program on Monday. However, only 19% of the government guaranteed small business loans are left, which may not be enough to support small businesses through to the end of the pandemic.

  • Citi preplaces BTL mortgage deal with RMBS wave incoming

    Citi preplaces BTL mortgage deal with RMBS wave incoming

    Citi has chosen to preplace Canada Square Funding 2020-1, a BTL deal pooling mortgages from originators Fleet Mortgages, Topaz Finance and Landbay Partners. A further seven UK RMBS deals are scheduled to arrive in the pre-summer window over the next month, sources said.

  • AFL makes 'punchy' sustainability debut

    AFL makes 'punchy' sustainability debut

    Agence France Locale hit the market with a September 2027 sustainability bond on Monday, raising €500m at a level one of the leads called "punchy" .

  • Cyprus and EFSF line up Tuesday deals

    Cyprus and EFSF line up Tuesday deals

    Cyprus will return to the market with a pair of taps on Tuesday, hitting screens alongside the European Financial Stability Facility’s new five year line, providing an excellent opportunity to compare Cyprus’s cost of funds with the cost of the European Stability Mechanism’s pandemic crisis support facility.

  • Swiss strengthen Pfandbrief law

    Swiss strengthen Pfandbrief law

    The Swiss government has recently approved draft amendments to its Pfandbrief law that will increase transparency and legal certainty, reducing the risk of a fire sale and payment default.

  • UK universities ‘tricky to read’ for capital markets investors

    UK universities ‘tricky to read’ for capital markets investors

    Investors in UK universities are struggling to work out just how risky the sector is, as its lucrative international student intake as well as pension liabilities are still unclear. A report published by the Institute for Fiscal Studies (IFS) on Monday estimated that 13 universities may go bust if they do not either carry out debt restructurings or receive government bailouts.

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