Corporate Bonds - Article Archive

  • US PP investors trumpet flexibility to beat year of the megadeal

    US private placement specialists are hoping the market will this year beat 2017’s record of 14 deals larger than $750m. They are playing up the ‘bells and whistles’ of the market – delayed draws, multiple currencies and varied tenors – to entice borrowers away from other funding sources.

  • Sterling investors give warm Wellcome to 100 year

    The two previous 100 year corporate bonds sold in the sterling market had received excellent responses and on Wednesday London-based charity the Wellcome Trust joined the century club, proving that investors' demand for ultra long bonds is far from satisfied.

  • Investors drive SIAS new issue to record deal at new low

    Italian toll road operator Società Iniziative Autostradali e Servizi (SIAS) followed a four day investor roadshow with its third 10 year bond this week. A €1.9bn order book allowed the company to print its largest ever deal at a much tighter spread than its previous two offerings.

  • HLEG report offers blueprint of sustainable finance system

    Europe has a good chance of being able to make a real start on greening its financial system, according to members of the High Level Expert Group on Sustainable Finance, which delivered its report to the European Commission on Wednesday.

  • Italy needs more attention while HY market gets plenty

    In just over a month, Italy will hold its latest general election. With the polls suggesting a healthy lead for a centre right coalition the effect on investment grade corporate spreads has been negligible so far. However, research house CreditSights believes investors should be looking more closely.

  • Wellcome Trust readies itself to join 100 club

    London-based charity the Wellcome Trust, which funds biomedical research, announced on Tuesday that it plans to become just the third issuer to sell a 100 year sterling bond. The Aaa/AAA rated charity met with investors on Tuesday morning and plans to issue the bonds as early as Wednesday.

  • Investors show strong support for Alliander hybrid refinancing

    Following an investor call on Monday, Dutch energy distributor Alliander received overwhelming support on Tuesday for a new €500m hybrid bond issued alongside a tender offer for its existing €500m 3.25% hybrid. The final order book was more than €3.5bn.

  • Indonesia high yield party: rampant — and unnerving

    Asia’s capital markets have started the year with a bang, but a market this good can’t last forever. The steady supply of new deals coming out at increasingly tight levels is a sign of clear frothiness in the market. Just take a look at the investor enthusiasm for low-rated Indonesian deals for an example of how bullish investors have become when they should be thinking twice.

  • Poly Real Estate secures $500m despite order drop

    Poly Real Estate Group Co, the investment-grade property arm of government-owned China Poly Group Corp, ended an near four year bond hiatus with a tightly priced transaction on Monday. But a volatile market and an aggressive narrowing in pricing caused a drastic drop in orders.

  • Yango derailed as bookbuilding falls through

    Recent heavy supply in the Asian dollar bond market has found its first victim in Yango Group Co, which called off a planned $250m deal on Monday. While the Chinese developer’s high leverage raised some concerns, volatility in US Treasuries also played its part in the underwhelming demand.

  • EU needs official Green Bond Standard, HLEG to advise

    The European Commission is being advised to set up a comprehensive Sustainability Taxonomy by 2020 to guide investment decisions towards a greener economy, and to develop an official EU Green Bond Standard. These are key recommendations of its High Level Expert Group on Sustainable Finance, according to a leaked draft copy of its report seen by GlobalCapital.

  • Sci Games plays in ‘well behaved’ HY mart

    US lottery and gaming group Scientific Games International sold its first euro bonds this week, in a European high yield market that bankers and investors described as ready and steady for opposite reasons.

  • Alliander set for record low hybrid refi under new S&P rules

    Dutch energy distributor Alliander announced plans for a new euro hybrid on Monday, alongside a tender offer for the company’s outstanding hybrid. The issuer’s ratings could allow it to set a new low for the product's pricing.

  • PAI’s French moves spark buyout deals in levfin markets

    Private equity firm PAI's divestment of its majority stake in Kiloutou, the French equipment rental firm, is pumping supply into the term loan market this week through a secondary buyout. Meanwhile, PAI is itself funding its leveraged buyout of Albéa, a French beauty product packaging group, with a high yield pay-if-you-can (PIYC) bond.

  • Chinese trio seek dollar bond outings

    Bond supply in Asia continues to be strong in the lead up to Chinese New Year and ahead of the year’s first Federal Reserve meeting this week. The pipeline from the mainland particularly is building up, with property and energy names preparing to go offshore.

  • Dollar investors focus on Asian bond supply

    The US Federal Reserve is scheduled to meet this week, just days after the yield on 10 year Treasuries reached a three-year high. But the Asian debt market remains largely unfazed, with investors focusing on the impending bond supply threatening to overwhelm them.

  • Corporate bond week ahead: January set for above average volumes

    When talking to syndicate managers or investors about the first month of 2018, you may think that supply volumes in the euro investment grade corporate bond market have been unusually low. However, a comparison of previous January issuance levels suggests it has been a much more normal start to the year.

  • Tsinghua Unigroup pays handsome premium for size

    Tsinghua Unigroup Co raised $1.85bn from a three-part bond on Thursday that included a last minute 10 year tranche on the back of reverse enquiry. But the chunky issuance size and the lack of ratings meant the borrower offered investors a generous return.

  • Ronshine China raises $325m as refi pressure builds

    Ronshine China Holdings sold a three year puttable bond at a 9% handle on Thursday, in a deal catering to reverse enquiry demand. But the issuer’s challenges are far from over, with high leverage, tight liquidity and ballooning refinancing needs putting pressure.

  • Italgas takes advantage of lack of supply for tight tap

    Italy’s leading gas distribution company Italgas was the latest issuer to benefit from the lack of corporate bond supply so far in 2018, tapping a deal on Tuesday. Investors, starved of paper, have caused order books to be multiple times oversubscribed and issuers have benefited from tight pricing as a result.

  • Taxing times fuel dollar disappointment

    US high-grade corporates began to emerge from earnings blackout but few are predicting the usual flood of bond issuance as fears over rising inflation and the impact of tax reform could keep borrowers on the sidelines.

  • Nordex turns to high yield to redeem Schuldschein

    Nordex, a German wind turbine manufacturer, began selling a €275m high yield bond this week as it plans to extend its debt maturities by taking out shorter-dated and floating rate Schuldschein paper.

  • Strong demand for 10 years and beyond bodes well

    Corporate bond investors were offered 10 year and 11.5 year new issues on Wednesday and combined order books of over €4.4bn showed there is significant demand for longer tenors in this market.

  • First unrated deal of 2018 gets Pirelli off to a flyer

    Italian tyre company Pirelli returned to the bond market on Monday for the first time since its IPO. With no other investment grade deals in the market, the new five year transaction enjoyed strong investor demand and 40bp of tightening from initial price thoughts.

  • French trio alleviate supply concerns but still at tight spreads

    Syndicate desks and investors have been quietly voicing concerns about the lack of a firm pipeline in the corporate bond market. Going into the final week of the month, January volumes of new issuance are likely to come in under that registered in 2017, although a trio of French issuers did alleviate some of the pent up demand this week.

  • Go and bore someone else with your sermon against high yield

    The ritual warnings about the ‘junk bond market’ are filling business pages again as the new year rolls on. They are inaccurate, and help hide the actual potential dangers under the surface of overheated high yield bonds.

  • Single-B buyers all ears for Algeco €1.4bn refi

    Investors looking for lower rated high yield bonds welcomed the roadshow of a three tranche, multi-currency deal from Algeco Scotsman, a US modular space and secure storage group, this week.

  • Rusal guides for five year

    United Company Rusal has released price guidance for its Reg S/144A five year benchmark bond.

  • NAB USPP banker heads north

    Scotiabank looks set to enter the US private placement market, after it hired an experienced banker from National Australia Bank.

  • Polyus Gold prints 'flat to fair value'

    Polyus Gold, Russia’s largest gold producer, printed its $500m six year bond on Wednesday from a book of $2bn and flat to where lead managers said they saw fair value.

  • Death of SBLCs? Bull market to blame for declining volumes

    Bonds backed by standby letters of credit have fallen from grace, as tightening spreads in the dollar bond market and growing risk appetite among investors ensure that issuers can do without credit enhancement. Have SBLCs had their day in Asia? Addison Gong finds out.

  • Ubisoft gets strong following for first go at bond game

    French video game publisher Ubisoft Entertainment sold its first corporate bond on Thursday following a roadshow earlier in the week. The meetings in Paris, London and Germany helped the publisher of games including Assassin’s Creed and Just Dance build a whole new following.

  • Hankook Tire seals $300m debut bond

    South Korea’s Hankook Tire Co grabbed $300m on the back of an impressive $2.3bn book on Wednesday in its debut international bond outing.

  • Beijing Capital compresses pricing with new three year

    Chinese state-owned Beijing Capital Group used a tried-and-tested approach for its bond return, replicating the structure of its debut deal a year ago. But its trade impressed nevertheless, priced with a negative new issue concession.

  • Higher beta names spark life into corporate bond market

    Corporate bond investors were treated to a relative feast of issuance on Wednesday following a meagre €850m of supply in the first two days of the week. A trio of higher beta names offered a variety of tenors and spreads for investors to choose from.

  • One more joins Rusal mandate

    United Company Rusal has added an extra bank to its bond mandate ahead of pricing for the Reg S/144A dollar deal, which is expected on Thursday.

  • Polyus Gold talks bond, books over $1.1bn

    Polyus Gold, Russia’s largest gold producer, has released price guidance for a six year benchmark bond and books for the deal are already over $1.1bn.

  • Investors hope social returns will make bond yields look better

    So far this year, the European corporate bond market has been an issuer’s market without many issuers. Or perhaps, the feeling that this January has been quiet is a measure of how used market participants have become to a torrent of deals.

  • Xiamen Xiangyu, Shimao find different response to bonds

    Chinese companies Xiamen Xiangyu Group Corp and Shimao Property Holdings each raised $500m on Tuesday, but saw different reactions to their bonds. While investors were keen on the former investment grade rated name, demand for the property industry is starting to see some pull back.

  • Energy companies light up dollar debt market

    Indonesia’s Medco Energi Internasional and China’s GCL New Energy Holdings bagged $500m each from debt investors on Tuesday, showing the appeal of the commodities and renewable industries.

  • Sears downgraded after announcing $1.3bn distressed debt exchange

    US retailer Sears announced its intention on Tuesday to swap unsecured and senior secured debt into new payment-in-kind notes that could be converted into common stock. Seeing this as a distressed debt exchange, Fitch Ratings quickly downgraded the retailer to C.