Corporate Bonds - Article Archive

Why have bond investors taken a vow of silence?

Pacific Gas & Electric has gone bankrupt with $52bn of debt, blaming forest fires that seared California during 2018. Vale, with $11bn, has been downgraded to the bottom edge of investment grade after its horrific dam burst last Friday.

Gazprom plans dollar bond return as US lifts sanctions on Rusal and EN+

Russian state-owned oil and gas giant Gazprom announced the mandate for a new dollar benchmark bond on Thursday, just days after a well-flagged move by the US Treasury to lift sanctions on Rusal and EN+. Market participants hailed the move as providing a more “constructive” and “encouraging” environment for Russian bonds.

Green companies seek ‘voice in the debate’ — EDF CFO

Sixteen companies, all leading green bond issuers, have formed a Corporate Forum on Sustainable Finance. Electricité de France was the prime mover. Xavier Girre, chief financial officer of EDF, tells GlobalCapital why the group is needed, why he supports a green supporting factor and how EDF’s sustainable finance strategy is developing.

Green investors prefer label over substance

Spanish telecoms company Telefonica this week became the latest issuer to sell green bonds. The volume of money dedicated to green bond investments meant that there was huge demand and the deal had participation of nearly 50% from green investors. But if those buyers had that much conviction they wouldn’t have waited for this trade.

Harley stalls but dollar market primed for supply glut

Harley Davidson made heavy weather of strong US bond market conditions on Thursday after a dovish Fed and a month-long rally in spreads appeared to set the dollar market up for a strong run of issuance in February.

Telefonica €1bn 1.6 Feb 2025

Telefonica puts telco sector's first call in to green bond market

Spanish telecoms company Telefónica on Monday launched the first green bond in euros from the telecoms sector. The firm, rated as one of Spain’s leading companies in the fight against climate change, published its Sustainable Development Goal (SDG) framework in November but had to wait two months to sell its first green bond.

Hyundai prints first green as Deal Pool takes hold

Having accounted for the largest share of international issuance in Swiss francs in 2018, Korean borrowers appear to be acquiring a taste for the market again in 2019. Following last week’s sustainability trade for Korea Western Power, Hyundai Capital returned to the market on Tuesday with its first green bond in the currency.

Gazprom shows no sanctions fear as it markets dollar bond

State-owned Russian oil and gas giant Gazprom is embarking on a US roadshow with investors keen to take a look, ignoring any threat of possible further sanctions from the country.

BMW’s patience rewarded with tight pricing for jumbo

A quiet week for corporate bond issuance may have helped BMW Finance achieve tight pricing on Thursday, but selling its largest ever deal with new issue premiums in single digits was still an excellent outcome when compared to the premiums being paid at the start of the month.

Aberdeen and Leicester unis set to raise US PP notes

The universities of Aberdeen and Leicester are marketing US private placements (US PP), it is understood, both of which willl be inaugural transactions.

Happy New Year! Asian issuers end lunar year with a bang

Abundant supply, a diverse crop of issuers and some rare long-tenor deals characterised Asia’s bond market ahead of the week-long Chinese New Year holiday, setting the stage for a positive February. Addison Gong reports.

Studio City hits jackpot with $600m to fund tender

Macau casino operator Studio City Finance has priced a $600m deal to fund a tender offer, winning plaudits for its precise pricing. But while the company could return to the bond market again this year, overall supply from the sector is expected to be subdued.

Bondholders remain tongue-tied as climate risks worsen

Most bond investors are making minimal effort to lobby companies to improve their performance on climate change, a new report has found. Some feel they haven’t the right to make demands; some leave it to equity colleagues; some do not see it as relevant.

Gerry Weber insolvency ripples through Schuldschein market

German fashion house Gerry Weber has filed for insolvency after failing to repay a Schuldschein tranche last November and after subsequent discussions with lenders about restructuring the company broke down. The result is that Schuldschein lenders are out of pocket and have yet another example of default in a market ill-suited to the idea. Silas Brown investigates.

Tight Nat Grid print shows UK demand remains high

The day after the UK government mandated Teresa May to go to Brussels and renegotiate the country’s exit agreement with the European Union, the UK electricity transmission company National Grid tested investors’ appetites for UK assets and found a host of willing buyers without having to offer much of a premium.

DIP postpones sukuk

Dubai Investments Park Development Company has postponed its planned dollar five year sukuk.

Hybrid supply unlikely to match investor demand

Investors have come out in huge numbers to buy the three corporate hybrid deals that have been sold so far in 2019. However, the excess demand is unlikely to be sated as the year unfolds.

Oil India, SCB take advantage of long-end demand

Are Asian investors ready to embrace duration again? Oil India and Siam Commercial Bank (SCB) proved there is clear demand, rolling out a pair of 10 year bonds on Tuesday. SCB also added a five year tranche.

Updated: Indonesia’s Banten boosts project finance supply

Indonesian power company Lestari Banten Energi priced a $775m project bond on Tuesday, sealing the first such Asian deal of the year after months of preparation.

Suning squeezes through $235m tap before break

Suning Appliance Group has added $235m to its coffers with a bond tap, capturing one of the last windows for issuance ahead of the shut-down of Asia’s bond markets for the Chinese New Year holiday.

Studio City hits jackpot with unsecured bond

Macau casino operator Studio City Finance raised $600m from a deal that was priced right around fair value, funding a tender offer. There could be more bonds from the company in 2019.

Blackout season kicks in with market in fine fettle

Telefónica received overwhelming demand for its debut green bond on Monday with more than €5.4bn of orders, but unfulfilled investors were left with a blank new issue screen on Tuesday as corporate bond issuers move into reporting season. However, it has been one of the busiest Januaries on record.

Natixis reshuffles MTNs as Martin changes position

Natixis has made some internal changes to its MTN team, after the desk’s global head Elsa Martin took on a new position within the bank.

Not just property: Chinese issuers rush to bonds

Fosun International, China Grand Automotive Services and China Molybdenum Co rushed out to the offshore bond market on Monday, helping kick-start a rush of issuance before Chinese New Year.

Road King, Yuzhou lead China property deluge

There was a wall of supply from Chinese property companies at the start of the week. Road King Infrastructure and Yuzhou Properties brought a pair of callable four year bonds, but Jingrui Holdings and Fantasia Holdings Group both stuck to the very short-end of the curve.

US lifts Rusal and EN+ sanctions to muted reaction

The US Treasury went ahead with its plans to lift sanctions on Rusal and EN+ on Sunday. The move was well-flagged and has not caused much of a reaction in capital markets but was nevertheless seen as being ‘constructive’.

Yoma is first Myanmar firm into international bonds

Yoma Strategic Holdings has become the first company from Myanmar to sell an international bond, raising the equivalent of $70m in the Thai baht market.

Greentown nabs blowout perp trade

Greentown China Holdings raised $400m from a perpetual bond sale on the back of an impressive $5.6bn order book, as investors rushed into the deal for its pricing and structure.

Chongqing LGFV seals Sing dollar debut

Chongqing Banan Economic Park Development and Construction Co made its inaugural appearance in the international bond market with a Singapore dollar transaction, raising S$150m ($110m).

BOC loses debt syndicate head in Hong Kong

Bank of China’s Hong Kong-based debt syndicate head Sebastian Ha is leaving the firm next month.

NWS, Sino-Ocean see ‘impressive' demand for bonds

NWS Holdings and Sino-Ocean Group Holding received more than $4bn in orders for their respective bond outings, with their deals in hot demand both in primary and secondary markets.

ESR turns to Singapore for funds

Logistics real estate developer ESR Cayman turned to the Singapore dollar market this week to bring down its cost of funding, adding S$150m ($110m) to its coffers.

Southern Water launches last step in cap stack revamp

Southern Water launched a tender offer on Wednesday as the last step in a full-scale revamp of its capital structure — a journey which helped RBS handle nearly £1.3bn in uncollateralised swap exposure — in the largest ever repackaging of inflation risk. Ross Lancaster and Owen Sanderson report.

Corporates form their own green finance body

Sixteen European industrial companies have formed the Corporate Forum on Sustainable Finance, to grant themselves a stronger voice in the green bond market and promote the use of sustainable finance products.

EBRD, EIB jockey for position in revamped Juncker plan

The European Investment Bank, European Commission and EU member states are struggling to decide how to run InvestEU, a €47bn guarantee from the EU budget supposed to support €650bn in investment, as a successor to the Juncker plan. The Commission is seeking more direct control, while the European Bank for Reconstruction and Development is also after a bigger role.

Corporates in the dark as rally continues

High grade corporates are champing at the bit to access the dollar market as credit spreads continue to rally and investors continue to put money to work.

Kowepo and Basel power up Swissie green bonds

Korea Western Power (Kowepo) chose an appropriate week to launch the first ever green bond in Swiss francs from an emerging market issuer – and not just because sustainability was high on the agenda at Davos. The deal also came in a week in which representatives from the IFC and the Swiss Secretariat for Economic Affairs (SECO) met in Bern to discuss the results of a consultation on impact investing among more than 100 members of the Association of Swiss Sustainable Finance (SSF).

Accor taps deep demand to fund tenders

French hotel company Accor launched new hybrid and senior bond issues on Thursday after announcing the deals at the end of last week. The new deals finance tender offers for some of the company’s existing hybrid and senior notes.

Vonovia builds on market demand for property paper

Germany’s largest residential property company Vonovia attracted €4.5bn of demand for its latest deal on Thursday, as the property sector continues to be one of the more popular in the corporate bond market.

IBM €5bn jumbo pushes corporate bond boundaries

IBM returned to the euro corporate bond market for the first time since 2017 on Thursday, to sell its largest ever deal in the euro market and to push into a maturity not seen from a corporate issuer so far in 2019.

Auchan checks out but with premium pricing for retail

French supermarket chain Auchan attracted plenty of demand for its third consecutive January new issue but it had to pay a hefty new issue premium to ensure the deal got done. The supermarket sector is one of several retail sectors priming investors for poor annual results.

Euro high yield mulls ‘triple-B what-if’ for new opportunities

The volume of corporate bonds with triple-B ratings, and vulnerable to downgrades into high yield, is at its highest in history. But while the US market fears the prospect of fallen angels, Europe appears to see advantages.

EM primary market struggling to get into gear

Emerging market investors are enjoying an excellent start to the year in the secondary market, but primary supply has not followed up on its strong start to the year. Bankers and investors are confident that issuers will get moving soon though.

VW Bank sells €2.5bn deal as it awaits MREL quota

Volkswagen Bank started its funding for 2019 with a hefty four tranche deal on Thursday that will contribute to its minimum requirement of own funds and eligible liabilities (MREL) when the German regulator decides what that should be.

Aiming for the sky: China Evergrande takes home $3bn

China Evergrande Group raised $3bn with a tap of three of its existing bonds, but the issuance put a dent in its secondary curve as noteholders fled to the juicier new deal.

Mongolia’s MIK scores with long-awaited dollar debut

Investors put their faith in Mongolia’s recovery story this week, helping Mongolian Mortgage Corp (MIK) raise $250m from a bond that showed appetite for frontier market risk. Addison Gong reports.

Chinese issuers turn to anchored bonds

Club-style Chinese deals were back this week as Peking University Founder Group Co raised $150m from a three year bond and Yankuang Group grabbed $215m.

EDP taps plentiful demand for green hybrid bonds

Following the success of Engie’s green hybrid bond the previous week, the French energy company’s Portuguese peer, EDP, launched its own version on Wednesday. While EDP’s deal did not achieve quite the same demand or tight pricing, the result was still a good one.

Dubai Investments Park embarks on roadshow for sukuk

Dubai Investments Park is hitting the road to market a five year fixed rate senior unsecured Reg S only sukuk.