Bank of America

Chinese banks issued $5.7bn of debt on Wednesday and Bank of China (BoC), never one to take a back seat, stole the show with a $3bn bullet Basel III-compliant tier two offering. The enormous demand suggested that investors just cannot get enough of Chinese bank capital, and by venturing into the 144A market the bank has set a strong benchmark to help the pricing of remaining supply, writes Virginia Furness.

National Australia Bank is set to sell the first Basel III-compliant tier two capital issue from an Australian bank in euros on Wednesday.

Bank of China is well underway with its debut Basel III compliant tier two, opting for a single dollar bullet. The deal follows in quick succession the bank’s $6.5bn additional tier one (AT1) preference shares which it sold on October 15.

Industrial and Commercial Bank of China New York is out in the market with a triple tranche senior dollar, as fellow Chinese big banks China Construction Bank and Bank of China market tier two bonds.

European companies from beleaguered industries, new to the market or under investor pressure had better think twice before they enter a high yield market willing to teach them a lesson before the year ends.

UK challenger bank Virgin Money today restarted its planned London IPO, after having put the deal on hold last month, as a keenly awaited decision from the Bank of England reassured the issuer.

South African telecommunications company MTN built a $3bn book for its $750m 10 year bond on Monday. Leads printed the maximum size that the company was considering as emerging market and investment grade buyers scrabbled for the diversification the debut name offered.

Nexteer Automotive Group, which has operations in China but is headquartered in Michigan, is marketing its debut dollar bond.

Heathrow has signed a £2.15bn refinancing of its revolving credit and liquidity facilities with a syndicate of 22 banks. The loan comprises a £1.4bn revolving credit facility and a £750m standby liquidity facility.

Skandinaviska Enskilda Banken has begun a roadshow for its debut additional tier one capital issue. Along with a potential pair of capital trades from Australian banks, it will provide the FIG market’s first true test of investor risk appetite since the European Central Bank’s banking system health check.

Intu Properties, the UK real estate investment trust, signed a £600m revolving credit facility on Friday. The five year loan carries a two year extension option.

Hungarian oil refinery company Mol has signed a $1.55bn equivalent revolving credit facility agreement with a group of 15 banks, increasing the size of the deal from its original $500m-$1bn target range.