Corporate Bonds - Article Archive

  • Jubilant Pharma establishes dollar curve

    Debut issuer Jubilant Pharma ventured out to the international bond market on September 29, netting $300m from its first dollar-denominated transaction.

  • China takes lead in green finance, though coal still there

    China is where it's at in green finance in 2016. Its brand new domestic green bond market has zoomed to be the world's biggest in no time, and it has become the first country to produce a comprehensive plan for greening all aspects of finance. Mutual investment between China and the West is set to rise, though some have qualms about funding 'clean coal', reports Julian Lewis.

  • FIG and corporate green bonds are flying, but who’s the pilot?

    The green bond market began with deals from only the world’s top credits. But now, companies and financial institutions are a growing part of the sustainable bond world. Their commitment to the sector will be crucial in helping it reach full capacity — a necessity if the monumental task of financing the world’s transition to sustainability is to be achieved before it’s too late. But the market is still in its nascent stages, and there is much work to do before even senior unsecured green bonds are standardised, giving both issuers and investors the confidence in the asset class needed to scale it up effectively. GlobalCapital sat down with 13 market professionals on the sidelines of the Euromoney/GlobalCapital Sustainable & Responsible Capital Markets Forum in Amsterdam in September to talk about the big issues in the market.

  • Asian green bonds blossom with China, India in the lead

    The Asian green bond market has gone from being a minnow a year ago to dominating global issuance, proving that the product is here to stay. But with no real pricing advantage and the investor base still largely traditional, there is plenty holding back a shift towards growth and sophistication writes Rashmi Kumar.

  • Investors tune in for TVB’s $500m debut

    Investors welcomed the inaugural appearance from Hong Kong’s Television Broadcasts (TVB) in the dollar bond market. Hong Kong credits remain a rarity in G3 and the deal provided some nice diversity from a well-known brand.

  • Latin corps flock to bond market as EM tightens

    There are signs of resistance from bondholders struggling to see the value in primary bond deals, but Latin America’s new issue market marched on this week with three corporates issuing on Thursday.

  • Despite IMF urge, SNB not likely to change tack

    The International Monetary Fund (IMF) advised the Swiss National Bank (SNB) to adjust its policies away from foreign currency interventions and towards even deeper negative interest rates on Monday.

  • Investors hot on hybrids again, auguring more supply

    After German utility company ENBW struggled to offload a $300m hybrid in a choppy market on Monday, the issuer returned with a bang in euros on Wednesday, and was quickly followed by a dual trancher from French energy provider Total on Thursday.

  • BoE kicks off CBPS, IG has £1.1bn week

    The sterling market's strength was on full display this week, with £1.1bn in new investment grade deals heading into investor pockets — a good sign that supply may be able to replace the BoE’s intended £10bn in purchases.

  • Euro seniors struggle before risk appetite returns in force

    A chaotic start to the week for the euro corporate bond market saw one deal pulled on a combination of soured sentiment and aggressive pricing, causing issuers to engage in a balancing act before risk appetite returned in force at the end of the week.

  • Cas-Sonova: the debut entrance that wowed the Swiss

    Sonova’s voice was heard on Thursday when it offered an age-defining, odds-defying triple tranche whopper to the Swiss market. All of the Sfr760m ($787.2m) paper matures within five years, half of the paper offers negative yields and none of it left Switzerland.

  • Schoeller makes €210m debut, Norwegian Air tries again

    Dutch plastic packaging manufacturer Schoeller Allibert priced its debut €210m five year bond on Thursday, after strong recent results, while Norwegian Air Shuttle looks to tap its 2019s, following its failure to issue notes earlier this year.

  • Hutchison sees success with dollar-euro combo

    CK Hutchison raised $1.25bn and another €1bn ($1.12bn) on Wednesday, whetting investors’ appetite with a good marketing strategy and wise timing, according to bankers.

  • Panda bonds in demand: NBC, China Merchants sign up

    China’s Panda bond market is gaining traction with the National Bank of Canada (NBC) establishing a Rmb5bn ($750m) programme, becoming only the second issuer from the country to seek onshore renminbi.

  • New World Development assembles $1.2bn from perp

    Hong Kong conglomerate New World Development benefited from a market pick-up on Wednesday, with its strong household name helping it raise $1.2bn from a perpetual non-call five bond.

  • HNA, Jababeka bag new dollar transactions

    Unrated HNA Group made a quick return with a $200m bond this week, just one month after its last offering. On the same day, Kawasan Industri Jababeka from Indonesia also priced an exchange offer for its existing 2019s.

  • Formosa emerges as blue chip bond market

    Major corporates have been quick to spot the potential of the Formosa market, with names including Apple, Électricité de France and Anheuser-Busch InBev selling multi-billion dollar transactions. Ample liquidity and a savvy investor base means corporate issuance of Formosa bonds is only set to grow. Elliot Wilson reports.

  • Four issuers on the hunt for funds

    A range of credits from India, Malaysia and Greater China stormed the Asian debt market on Thursday, vying for investor attention.

  • Private placements yield to a changing Taiwan market

    Taiwan life insurers are addicted to long dated callable private placements. But what was once a beneficial habit, is no longer offering juicy returns. As yields continue to slide, the Taiwanese MTN market is having to adapt to the changing environment, writes Jonathan Breen.

  • Taiwan renminbi bonds: down but not out

    Renminbi bonds in Taiwan had a spectacular run for most of last year. But a new age of renminbi volatility combined with weaker regulatory momentum has put the market on hold in 2016. Nevertheless market participants agree that the renminbi promise remains an enticing one. Paolo Danese reports.

  • CK Hutchison sweeps dollars and euros

    Hong Kong-headquartered conglomerate CK Hutchison Holdings is readying a global sweep of debt markets to raise refinancing funds, announcing on Wednesday morning that it intends to sell a euro-denominated eight year senior unsecured bond just hours after announcing a dollar trade in Hong Kong.

  • EnBW strikes more successful note with euro hybrid

    The euro corporate hybrid market reopened on Wednesday as Energie Baden-Wuerttemberg sold the second leg of its intended two currency deal, the first part of which was said by onlookers to have been subject to poor market conditions early in the week.

  • Veolia nabs dual trancher after tough start to the week

    After a rocky beginning to the week that saw an offering from Lufthansa pulled — a rarity in the European corporate bond market — French transnational utility and service company Veolia managed to sell a total of €1.1bn in senior unsecured bonds across two tranches on Wednesday.

  • BASF rebuilds curve in sterling

    BASF SE was on Wednesday set to become the first sterling issuer into the primary market with an outstanding bond that is already eligible for purchase under the Bank of England’s Corporate Bond Purchase Scheme, which kicked off on Tuesday.

  • Korean Air fails to take off with first HY note since 2010

    Divergent pricing expectations between Korean Air Lines (KAL) and investors forced the issuer to pull its hybrid bond on Tuesday evening after a two-day syndication process. The cancellation has dashed hopes of a comeback in high yield issuance from South Korea as the single-B rated trade was slated to be the first since September 2010. Addison Gong reports.

  • Pemberton launches sterling fund in 'commoditised' market

    UK asset manager Pemberton launched a £500m mid-market all-sterling direct lending fund this week, with one market participant arguing that opportunities in the space will expand because European banks are “the worst pricers of credit” in the market.

  • Rush of sterling deals greets UK corporate QE

    Showing its openness to ideas from the European continent, the UK this week followed the eurozone into corporate bond quantitative easing. The Bank of England began its long anticipated Corporate Bond Purchase Scheme on Tuesday, and already it appears to be stimulating a flurry of sterling bond issuance.

  • BlackRock: climate risk is real for all investors

    Heads turned in the investment world early in September, when BlackRock published a 15 page think piece on ‘Adapting Portfolios to Climate Change’. In fact, it could be a turning point. If the world’s largest asset manager is taking climate change seriously, other mainstream firms, especially in the US, now have little excuse for ignoring it. Ewen Cameron Watt, senior director at the BlackRock Investment Institute, spoke to Jon Hay about why all investors need to be climate-aware.

  • Jinan LGFV swallows $300m on strong demand

    Investors welcomed Chinese local government financing vehicle Jinan West City Investment and Development Group to the G3 market on Tuesday, enabling the debut issuer to net $300m off the back of $1.3bn of demand.

  • What’s in a pulled deal?

    Pulled deals are traumatic for those involved but unlikely to derail European corporate bond issuance while the European Central Bank is still buying the market.

  • Vodafone makes euro drive-by for €750m

    Vodafone shrugged off a troubling start to the week for primary bond markets on Tuesday by selling a benchmark long seven year transaction that was more than three times oversubscribed and won a single digit concession.