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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.
31 Jan 2019 -
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.
31 Jan 2019 -
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.
31 Jan 2019 -
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.
31 Jan 2019 -
Telefonica €1bn 1.6 Feb 2025
31 Jan 2019 -
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.
31 Jan 2019 -
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.
31 Jan 2019 -
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.
31 Jan 2019 -
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.
31 Jan 2019 -
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.
31 Jan 2019 -
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.
31 Jan 2019 -
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.
31 Jan 2019 -
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.
31 Jan 2019 -
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.
31 Jan 2019 -
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.
30 Jan 2019 -
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.
30 Jan 2019 -
DIP postpones sukuk
Dubai Investments Park Development Company has postponed its planned dollar five year sukuk.
30 Jan 2019 -
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.
30 Jan 2019 -
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.
30 Jan 2019 -
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.
30 Jan 2019 -
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.
30 Jan 2019 -
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.
30 Jan 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.
29 Jan 2019 -
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.
29 Jan 2019 -
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.
29 Jan 2019 -
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.
29 Jan 2019 -
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’.
28 Jan 2019 -
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.
28 Jan 2019 -
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.
28 Jan 2019 -
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).
28 Jan 2019 -
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.
28 Jan 2019 -
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.
25 Jan 2019 -
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.
25 Jan 2019 -
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.
24 Jan 2019 -
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.
24 Jan 2019 -
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.
24 Jan 2019 -
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.
24 Jan 2019 -
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).
24 Jan 2019 -
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.
24 Jan 2019 -
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.
24 Jan 2019 -
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.
24 Jan 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.
24 Jan 2019 -
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.
24 Jan 2019 -
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.
24 Jan 2019 -
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.
24 Jan 2019 -
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.
24 Jan 2019 -
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.
24 Jan 2019 -
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.
24 Jan 2019 -
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.
23 Jan 2019 -
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.
23 Jan 2019