Corporate Bonds - Article Archive

MAF launches sukuk, a bit smaller but inside price talk

Majid Al Futtaim, the United Arab Emirates-based shopping centre developer, launched and priced a $400m sukuk on Tuesday at 5.85% – inside its earlier 5.9%-5.95% guidance but below the maximum $500m benchmark size deal the firm had aimed for.

Wharf makes bond comeback bid with benchmark dollar deal

Hong Kong developer and port operator Wharf Holdings has returned to the dollar bond market for the first time in more than three years. The company scrapped a previous attempt at a deal early last year, but bankers are confident that its strong name recognition in Hong Kong would help them close a deal in New York trading hours on Monday.

Sfr550m of euro, Swissie bonds launched for Orange Switzerland LBO

Credit Suisse and Deutsche Bank have launched a Sfr550m-equivalent high yield bond to part-finance the buyout of Orange Switzerland by Apax Partners.

Proposed Russian LPN tax could derail Eurobond train

A new withholding tax suggested by Russia's deputy finance minister Sergei Shatalov in a letter to the Russian Federal Tax Service could make Eurobond issuance much less attractive to Russian companies.

Enel takes advantage as MTN investors warm to Italy

Enel, the Italian electricity company, sparked interest among medium term note investors as it took advantage of a dearth of corporate issuance to become the first Italian company to print a EuroMTN in 2012.

Everything Everywhere sticks to one thing in one place for bond debut

Everything Everywhere, the joint venture of France Télécom and Deutsche Telekom that is the UK’s largest mobile phone company, launched its debut bond today to an eager reception.

Cikarang pitches new dollar bond, launches buyback

Indonesian power producer Cikarang Listrindo is returning to the international bond market for the first time in two years, selling a new dollar transaction that it will use to buy back an outstanding $300m issue. It will be the first Indonesian corporation to tap the market since the country was upgraded to investment grade.

VW taps seven year at much tighter level

Volkswagen showed the keenness of both borrowers and investors to engage in corporate bond transactions today, raising €500m by tapping the €750m seven year bond it launched on January 10.

Seat Pagine Gialle misses restructuring deadline

Italian directories company Seat Pagine Gialle said on Monday evening, as another deadline passed for its consensual financial restructuring, that it had not yet completed a final proposal.

Socar bond to offer proxy for Azeri sovereign

The State Oil Company of Azerbaijan Republic (Socar) began a roadshow on Monday for a $500m Reg S deal via Citi, Deutsche Bank and Royal Bank of Scotland — the banks that the company mandated in June. Investors have been awaiting the deal for several years.

Berlian Laju suspends trading after redemption freeze

Indonesian shipping company Berlian Laju Tanker suspended trading in its Singapore-listed stock on Friday, leaving investors watching and waiting while it negotiates with bankers and investors about some $418m of debt it has due before the end of the year.

MAF gives price guidance on benchmark sukuk

Majid Al Futtaim, the United Arab Emirates-based shopping centre developer, has given profit rate guidance of 5.9% to 5.95% for its forthcoming benchmark sukuk issue. MAF last week established a $1bn sukuk trust certificate programme and looks set to issue the first five year tranche on Tuesday, thought to be up to $500m in size.

Schaeffler launches first 'one euro, one vote' senior secured bond

Things are looking a little brighter for Europe's high yield bondholders in their efforts to convince issuers that they deserve equal voting rights to bank lenders. Schaeffler, the German mechanical engineering group and automotive supplier, launched on Friday Europe's first senior secured bond to give debtholders their much-sought "one euro, one vote" enforcement rights.

Gas Natural hit shows issuers finally squeezing premiums

Corporate bond new issue premiums in Europe are finally coming down. That was the message from two successful deals on Monday, for Motability Operations Group of the UK and Spain’s Gas Natural Fenosa.

Ineos back in euro, dollar market for $850m

Petrochemicals and specialty chemicals maker Ineos plans to sell an $850m-equivalent seven year non-call three bond, in euros and dollars. The senior secured deal will comprise a fixed rate dollar tranche and a euro floater.

TMD Friction buys back €20.05m

TMD Friction Finance has bought back €20.05m of its 2017 10.75% senior secured bonds. The notes were repurchased in a change of control offer made in accordance with the indenture covering the notes, the company said in a statement.

Everything Everywhere picks leads for deal this week

Everything Everywhere, the UK mobile phone company, has moved one step closer to launching its debut bond, by mandating other banks to join Barclays Capital, which arranged the roadshow, held across Europe from January 16 to 20.

Motability shaves pricing as issuers gain clout

Motability Operations Group, the UK company that leases cars to disabled people and their carers, completed a successful bond sale today that was the first dual currency issue in the European corporate market this year.

Asian loans bankers fear migration to bond market

Asia Pacific borrowers outside of Japan have around $90.6bn of dollar-denominated loans maturing over 2012, according to Dealogic. But not all loans bankers are confident that they will be given the chance to roll these deals over. The dramatic start to bond issuance this year has shown borrowers an alternative they just might snap up.

Deutsche Bahn

No need for IPO confusion: rely on Chapter 18

Mining companies looking to list in Hong Kong should refer to the stock exchange’s Chapter 18, not an earlier consultation document — a lawyer who drafted the rules told EuroWeekAsia this week.

Investors prepare for US deal glut in February

Supply in the dollar corporate bond market was subdued again this week as many non-financial names remained in earnings blackout.

Ono, Ceva, Codere join Welltec in $ frenzy

After last week’s $3.2bn whammy of European high yield issuers tapping dollar investors, Denmark’s Welltec priced a $325m deal this week. Three more issuers launched marketing campaigns and bankers expect more.

Wienerberger’s Belgian retail bond sale spills across Europe

Wienerberger, the Austrian company that is the world’s largest brickmaker, has raised €200m with a Belgian and Luxembourg retail bond whose sales grew to include Austria, Switzerland and Germany.

Commerz turns to synthetic securitisation to plug capital hole

Commerzbank has launched a synthetic securitisation of its Mittelstand loan portfolio, aiming to sell €160m of equity risk and €30m of mezzanine risk as part of frantic efforts by the bank to fill its €2.3bn capital hole.

Markit Data 1239

Enel seeks big Italian retail bond, with €2bn-€3bn target

Enel, the Italian electricity company, is hoping to issue a large domestic retail bond in February, and is talking to banks about a possible new syndicated loan (see Loans section).

Fears of bank clampdown as Petroplus fails

Insolvency proceedings are under way at Petroplus, the Swiss oil refiner which defaulted on $1.6bn of high yield bonds and $150m convertibles on Tuesday.

Bookrunners of European IG corporate bonds, January 27, 2012

Yield-starved Swiss seek richer corporate returns

Swiss investors underscored their appetite for higher yielding corporate names this week, favouring a first deal in two years from Australia’s SPI and a debut transaction from Iberdrola over the more meagre returns available on a Deutsche Bahn dual trancher.

Bookrunners of all international bonds — 2012 (January 25, 2012)

Bookrunners of European high yield bonds, January 27, 2012

Bonds Tables 1239

Europeans not needed to make US HY fizz

Even without the flow of European deals, the US high yield market is booming.

NWS Holdings looks for dollar bond debut after holiday

NWS Holdings, the infrastructure division of Hong Kong conglomerate New World Development, met investors in Asia and Europe to pitch its debut dollar bond last week.

SPI Electricity & Gas Australia Holding

Sterling turns up the heat in corporate world

Two trends gripped the European corporate bond market this week: a burning demand for bonds across the continent and the dominance of sterling.

Synthetic bond flow? Don’t hold your breath

Debt bankers tried their best last year to drum up demand for synthetic currency bonds, but after the lacklustre performance of a few early deals combined with a big spike in investor caution, the market quickly fizzled out. Is there greater hope for the synthetic currency market this year? There is reason to think not. It might just be even worse.

Eni’s patience pays in huge blowout for Italian reopener

The risk-on tone in Europe’s corporate bond market is developing a hard shell. No matter that Thursday’s 0.75% fall in the S&P 500 wiped out nearly all of Wednesday’s 1% rally. Today was a day for action, and Eni, the Italian oil group, pounced, after watching the market since the end of last year.

Places for People happy with £40m, equity surge distracts

Places for People Homes, the UK housing association, completed its second retail bond offering on Wednesday, raising £40m of inflation-linked bonds.

Bookrunners of all global bonds (Asia Pacific) — 2012 (January 25, 2012)

Iberdrola

Orange Switz’s bonds take shape, Numericable, Ineos loom

Credit Suisse has circulated provisional financing details for Orange Switzerland’s leveraged buyout by Apax Partners.

Open for business — MAF debuts in corporate sukuk market

The sukuk new issue market looks set to be re-opened by benchmark deal for Majid Al Futtaim, the UAE-based shopping centre developer.

JBS and Camposol nourish LatAm high yield

High yield supply returned to the Latin American debt markets this week with a pair of deals pricing and at least three entering the swelling pipeline.

Surge for risk gives Bouygues, Alstom, TVO blowouts

The sluggish start to European corporate bond issuance this week was dashed from sight on Thursday as GE Capital and three European companies launched well received deals, with substantial tightening in spread guidance. Demand from investors for corporate paper is now as vigorous as it has been at any time since June.

Tesco shrugs off rating risk to fifth CMBS

Tesco sold a £450.5m sale-and-leaseback commercial mortgage backed security on Wednesday, shrugging off a downgrade warning from Moody’s, but paying a 30bp new issue premium that repriced its other bonds.

Compass feasts in euro market – could NIPs be shrinking?

Compass, the UK food service group, shared Eni’s good fortune – or good judgement – today in launching its first bond for ages on what was arguably the best day for European corporate new issues for at least eight months, and perhaps 18.

Huge demand yields blowouts for GE, Bouygues, Alstom, TVO

The sluggish start to European corporate bond issuance this week was dashed from sight today as GE Capital and three European companies launched hit deals, with substantial tightening in spread guidance. Demand from investors for corporate paper is as hot as it has been at any time since June.

Severn Trent buyback gets high hit rate

Severn Trent Water completed yesterday the bond buyback that accompanied its recent issue of a new £250m 30 year bond. The transaction achieved a high take-up rate.