Corporate Bonds - Article Archive

  • Mingfa grabs $100m after two day execution

    Chinese property developer Mingfa Group made it across the finishing line with a five year non-call three dollar debut late last week. But widening bond indices and a procession of first time names from the same sector meant the borrower had to settle for a $100m deal.

    31 Jan 2013

  • KWG succeeds in seven years after scrapping perp

    KWG Property Holdings turned away from the bond market only two weeks ago, giving up a perpetual deal. But when it returned with a more modest transaction — this time pitching a seven year non-call four bond — the developer found its fortunes much improved, and managed to price the deal with virtually no new issue premium.

    31 Jan 2013

  • Investors getting picky with perps as issuers push hard

    KWG Property Holdings, Petron Corp and Reliance Industries all turned to the dollar bond market this week, providing a neat illustration of what investors are willing to accept from perpetual bond issuers — and which structures will face their wrath when secondary trading opens.

    31 Jan 2013

  • Gazprom takes tight dual-tranche dollars

    Gazprom priced a $1.7bn dual-tranche market return tight to its existing curve on Wednesday, calming market fears of oversupply from the Russian state sector.

    31 Jan 2013

  • KWG succeeds in seven years after scrapping failed perpetual

    KWG Property Holdings turned away from the bond market only two weeks ago, giving up a perpetual deal. But when it returned this week with a more modest transaction — this time pitching a seven year non-call four bond — the developer found its fortunes much improved, and managed to price the deal with virtually no new issue premium.

    31 Jan 2013

  • Future Land finds dollar debut an uphill struggle

    Future Land Development Holdings made its dollar bond debut at the end of last week, managing to print a modestly oversubscribed $200m five non-call three deal on January 25, but investor fatigue amid a glut of Chinese property supply made execution difficult, said bankers.

    31 Jan 2013

  • Reliance no exception to perpetual slump

    Indian conglomerate Reliance Industries closed a $800m perpetual bond on Tuesday, only the second time an Asian issuer has convinced investors to buy a bond without a maturity or a coupon step-up. But investors and rival bankers questioned the structure, and the bond quickly traded down in the secondary market.

    31 Jan 2013

  • Gajah Tunggal sells a five year non-call three

    Indonesian tyre manufacturer Gajah Tunggal returned to the dollar market in style at the end of last week, selling a $500m five year non-call three deal that gave it the money to finance a tender offer. It pulled in huge demand, despite some investors thinking the pricing was tight.

    31 Jan 2013

  • ENN favours CB over straight bond for $500m

    ENN Energy Holdings, a Chinese clear energy company, has already shown that it can tap the conventional bond market, but the company’s management decided this week that it made more sense to turn to equity-linked investors for $500m of funding. That bodes well for a market that should experience a flurry of deals over the next few months, said a banker familiar with the transaction.

    31 Jan 2013

  • Tata nets S$250m from stellar start in Sing dollars

    Tata Communications became the first privately-owned Indian company to print a Singapore dollar deal last week. The demand from institutional investors and the final pricing exceeded even the bookrunners’ expectations, and there is no shortage of corporations looking to follow in Tata’s footsteps, said bankers.

    31 Jan 2013

  • MIE held to guidance as deluged buyers resist

    MIE Holdings Corporation launched a five year non call three deal with an aggressive opening spread on Wednesday. But buyers inundated with dollar bond issuance pushed back, and the issuer had to price a modest $200m deal in line with initial guidance.

    31 Jan 2013

  • French hospital group CHU raises €228m

    Groupement des Centres Hospitaliers Universitaires, a group of French public sector hospitals that raise finance together, sold a €228m 10 year bond yesterday through Crédit Agricole and Natixis.

    31 Jan 2013

  • Melco’s latest bond covers dual redemptions

    Melco Crown Entertainment priced a $1bn eight year non-call three bond on Wednesday, helping the company finance a tender offer for another dollar deal as well as repay a maturing renminbi note.

    31 Jan 2013

  • Melco Crown prints $1bn to cover dual redemptions

    Melco Crown Entertainment priced a $1bn eight year non-call three bond on Wednesday, helping the company finance a tender offer for another dollar deal as well as repay a maturing renminbi note.

    31 Jan 2013

  • Cosco’s tight 10 year ends decade absence from dollars

    Cosco Pacific has returned to the dollar bond market for the first time in a decade, closing a $300m 10 year deal. It sacrificed size for tight pricing and the lack of a rating turned some investors off — but the rarity of the credit, as well as its state ownership, ensured a solid result.

    31 Jan 2013

  • Fertiliser firm Phosagro targets dollar debut

    Phosagro, a Russian fertiliser producer, will start meeting investors on Friday in Europe and the US ahead of a potential dollar debut deal. Citi, Raffeisen Bank International, Sberbank CIB and VTB are organising the two-team roadshow, which is due to finish on February 5.

    31 Jan 2013

  • Ono guides new €250m deal at 8.5%-8.75%

    Grupo Corporativo Ono, the Spanish cable operator, is guiding its €250m senior secured high yield bond in the 8.5%-8.75% area. The 2020 notes will be issued through its special purpose vehicle Nara Cable Funding.

    31 Jan 2013

  • Nord Anglia Education plans $150m PIK toggle

    Nord Anglia Education jumped on the PIK toggle bond bandwagon on Thursday, marketing a $150m transaction to price on Friday. The five year non-call two notes follow Orion Engineered Carbons' PIK toggle deal on Tuesday.

    31 Jan 2013

  • Opinion: Perps leave investors searching for redemption

    The bond market is awash with liquidity and rates are low. Issuers are understandably eager to lock in long-dated funding and perpetuals represent the ultimate opportunity. But investors have shown that structures with no step-up are a step too far.

    31 Jan 2013

  • Russian Railways shows broad investor appeal

    Russian Railways priced its debut Swiss franc transaction on Tuesday, using a dual tranche format to maximise its appeal to both retail and institutional investors. While the bulk of the demand is still thought to have come from private banks, the eight year tranche was the first CEE debt in Swiss francs to target institutional investors.

    30 Jan 2013

  • Trio take $800m as bond rush rolls on

    Greentown China Holdings and Korean Southern Power launched twin dollar transactions on Monday, and International Container Terminal Services International tapped a recent issue in the same currency. The three borrowers raised $800m between them.

    30 Jan 2013

  • Lithuania's Bité sells €200m high yield FRN

    Lithuanian mobile telecom operator UAB Bité Lietuva has sold its €200m 2018 high yield bond on Wednesday. The senior secured floating rate notes came in line with coupon guidance.

    30 Jan 2013

  • LatAm investors still not cowed by HY as JBS prices

    Brazilian group JBS, the world’s largest meatpacker, sold $500m of 10 year bonds to yield 6.5% on Tuesday as producers of cattle products continue to dominate the Brazilian high yield scene.

    30 Jan 2013

  • Gazprom goes tight for guidance despite Russian sovereign supply fears

    Gazprom has released price guidance for a dual tranche dollar note of 3.85% area yield for a seven year tranche and 5% area for a 15 year. Syndicate officials away from the deal say the guidance is extremely tight considering the potential imminent supply from Russian state-owned issuers this year.

    30 Jan 2013

  • OTE sells €700m of Greek high yield debt

    OTE, the Greek telecoms company, made a convincing return to the bond market today, after being shut out since April 2011 - in a clear sign of investors' returning confidence in Greece.

    30 Jan 2013

  • Ferrexpo mandates for 'canary in a coalmine' trade

    Ukrainian iron ore pellet producer Ferrexpo has mandated Credit Suisse and Morgan Stanley to arrange a dollar Reg S/144a Eurobond. Meetings with investors start on Thursday, and ratings agency Fitch says it is expecting a $500m five year deal.

    30 Jan 2013

  • Gajah do, Gajah do: sell a five year non-call three

    Indonesian tyre manufacturer Gajah Tunggal returned to the dollar market in style at the end of last week, selling a $500m five year non-call three deal that gave it the money to finance a tender offer — and managing to get huge demand despite what some investors saw as its tight pricing.

    29 Jan 2013

  • Mingfa manages $100m after two-day execution

    Chinese property developer Mingfa Group made it across the finishing line with a five year non-call three dollar debut late last Friday. But widening bond indices and a procession of first time names from the same sector meant the borrower had to settle for a $100m deal.

    29 Jan 2013

  • Millicom Africa looks for debut deal

    Millicom Africa has picked JP Morgan and Standard Bank as joint bookrunners and joint global co-ordinators, and BNP Paribas as a joint bookrunner, for its debut bond. The bond will be for $510m and will mature in 2020.

    29 Jan 2013