Banks

Federal Reserve economists have warned of ‘financial stability’ concerns around the US treatment of foreign banks, after publishing research suggesting that some institutions were hiding assets in branches to escape closer regulatory oversight.

Sucafina, a Swiss coffee company, has signed a $500m sustainability-linked borrowing base facility, as a small wave of deals from the German speaking region come to fruition.

Market participants expect to see the end of “vanilla” deals in the European bank bond market, as tier two debt becomes the latest asset class to embrace call periods over call dates.

China’s ABS market had a burst of supply this week, with five auto loan finance companies announcing or pricing deals in a bid to get ahead of possible tighter monetary conditions onshore. But the diverse nature of the originators meant competition was of little concern. Addison Gong reports.

China Railway Construction Corp (CRCC) sold two tranches of five year bonds, one in dollars and the other in euros, to net more than $663m.

A pair of large block trades this week showed the depth of Hong Kong’s equity capital market, with more than $3bn raised by conglomerate China Evergrande Group and European food products company Danone. Jonathan Breen reports.

A group of nine issuers from Asia sold green or sustainability dollar bonds this week, propelling volumes to new highs. A large part of the debt business in the region is still focused on green and the environment, but there is growing urgency to pay more attention to governance standards. Morgan Davis reports.

Guandong Haid Group Co and Shenzhen Yuto Packaging Technology Co are both making their debuts in the loan market.

Citi has added to its EMEA technology investment banking team with the hire of a managing director from Deutsche Bank.

Europe’s corporate bond market continued to pump out deals on Wednesday, despite the equities market licking its wounds after inflation fears brought a sea of red to stock prices.

Commerzbank has outperformed expectations by reporting a net profit in the first quarter of the year — even accounting for a large restructuring charge — as the German lender trims its workforce and sharpens its focus on the domestic market and German clients.

French cloud computing company OVHcloud has mandated banks for its upcoming initial public offering on Euronext Paris.