Corporate Bonds - Article Archive



  • CoGard locks up new long tenor note

    Country Garden Holdings Co raised $1.5bn in a dual tranche trade on Thursday. The longer dated tranche, a seven year tenor, is the longest dated bond from a high yield property borrower this year.

  • Sfund, Yunnan Metro find robust demand for bonds

    Chinese provincial government-owned Guangzhou Industrial Investment Fund Management Co (Sfund) saw a 14 times covered order book for its return to dollar bonds, while Yunnan Metropolitan Construction Investment Group Co was able to hit its $800m size target.

  • Corps rally pauses as cash backlog evaporates

    The wave of demand that has poured into the European corporate bond market since January, sweeping spreads tighter, paused this week. Deals were still priced at tight levels, but most had at least some new issue concession and the tone definitely felt more “normal”, as one banker said.

  • VW pounces for €2.75bn after carmakers rally

    Europe’s most prolific corporate bond issuer re-entered the market on Monday for its second multi-tranche deal of the year, and issued €2.75bn, slightly more than at its €2.5bn outing in January. The book for Volkswagen Financial Services’ three tranche issue was somewhat smaller this time, however.

  • Slower market no bar to RCI’s biggest orderbook for ages

    RCI Banque followed Volkswagen Financial Services’ triple tranche bond issue on Monday with its own two-part issue on Wednesday. Both car finance banks, as very regular issuers, are unlikely to command the absolute tightest pricing relative to their secondary curves, but demand has also cooled somewhat this week, compared with the avid tone of recent weeks. Nevertheless, pricing tightened a long way.

  • Investors show sweet tooth for Mars debut

    Confectionery group Mars piled up an order book of $28bn for its debut dollar bond this week, underlining the sheer weight of money pouring into high grade credit.

  • Vodafone sells new $2bn hybrid after mando equity credit loss

    Vodafone launched and priced on Thursday a $2bn hybrid capital issue, to gain some more equity credit in the eyes of the rating agencies. The deal follows Moody’s decision on Monday to give no equity credit to Vodafone’s £3.4bn mandatorily convertible bond, issued on March 5.

  • Südzucker, hybrid pioneer, halts coupon as cashflow dwindles

    Südzucker, the German sugar company that was one of the first ever issuers of corporate hybrid capital with a €700m perpetual issue in 2005, has been forced to suspend coupon payments on the bond, when poor results it released on Wednesday hit cashflow triggers in the documentation.

  • Aramco size, tenor and pricing chat heats up as bond draws closer

    State oil company Saudi Aramco is expected to tap the bond market in the next fortnight for a deal that could be anywhere in the region of $7bn-$15bn, according to bankers in the region away from the deal. Estimates of the premium Aramco will have to pay over the Kingdom of Saudi Arabia curve is being discussed as negative to plus 15bp, depending on the size of the deal.

  • Fitch fined over de Lacharrière conflict of interest

    The European Securities and Markets Authority has fined Fitch for conflicts of interest, relating to ratings given to entities where French billionaire businessman Marc Ladreit de Lacharrière sat on the board. The French businessman indirectly owned a stake in the ratings agency.

  • RCI Banque pockets €1.4bn in cooler market

    RCI Banque followed Volkswagen Financial Services' triple tranche bond issue on Monday with its own two-part issue on Wednesday. Both car finance banks, as very regular issuers, are unlikely to command the absolute tightest pricing relative to their secondary curves, but demand has also cooled somewhat this week, compared with the avid tone of recent weeks. Nevertheless, pricing tightened a long way.

  • Corporates cool as excess cash runs out

    Almost everyone in the European corporate bond market admits they were wrongfooted by the storm of demand that has overwhelmed issuers this year. But the weather has changed again, as unexpectedly. From last week to this, the temperature is cooler and new issue premiums are, in most cases, back.

  • Evraz completes tender offer, hits screens with bond

    Evraz raised $700m with a five year bond on Wednesday as it returned to the fixed income market for the first time in two years. The company used the proceeds to finance a tender offer of its April 2020s.

  • NTPC powers up $450m offshore return

    Energy generator NTPC became the latest of a recent slew of Indian issuers to fund in the dollar bond market, with more deals underway.

  • KIIFB sells maiden Masala bond

    Kerala Infrastructure Investment Fund Board made its debut in the offshore rupee market on Tuesday, raising Rp21.5bn ($311.7m).

  • Brexit takes the edge off corporate bond appetite

    Conditions in Europe's corporate bond market remain attractive for issuers, but the exceptionally hot demand of the last two or three weeks has cooled. Deals on Tuesday, including a dual tranche from Anheuser-Busch InBev, confirmed the finding of Volkswagen's offering on Monday: that new issue premiums are no longer zero or negative.

  • Why Moody’s denied Voda CB equity credit

    Moody’s has decided not to give any equity credit to the £3.44bn of mandatorily convertible bonds issued by Vodafone on March 5. That means the UK mobile phone company has not yet achieved the total equity credit it had hoped to get from its financings for its Unitymedia acquisition. Vodafone announced on Tuesday March 26 a new hybrid capital issue which will gain it some more equity credit (see separate story).

  • UK lenders rejected from Schuldschein amid Brexit uncertainty

    Mersen, a French technology manufacturer, will not accept bids from UK-based lenders for its new Schuldschein “in anticipation of a potential Brexit”. Three bankers away from the transaction said they have also discussed excluding UK lenders with other borrowers.

  • IG investors all aboard IRFC deal

    Indian Railway Finance Corp (IRFC) pushed into the dollar market on Monday to close a bond trade ahead of the end of the financial year. The issuer managed to grab $500m from the five year sale, despite a weaker market.

  • Higher standards best for Asia’s bond markets long-term

    Last week’s tap of a KWG Group Holdings dollar bond triggered a debate between bankers about what makes for good market practice. The issuer may be an established and reputable one, but the tap was priced with the borrower still in an earnings blackout. If this sort of timing were to take hold, the Asian issuers as a whole will struggle to build a globally diversified investor base.

  • Volkswagen takes second multi-tranche in tighter market

    Europe’s most prolific corporate bond issuer re-entered the market on Monday for its second multi-tranche deal of the year, and issued €2.75bn, slightly more than at its €2.5bn outing in January. The book for Volkswagen Financial Services' three tranche issue was somewhat smaller this time, however.

  • Scope teams up with VC Trade to offer ratings on digital platform

    VC Trade, the leading digital challenger in the Schuldschein market, has begun cooperating with Scope Ratings, which will now offer optional credit opinions for any borrower using the platform. This will add efficiency and transparency to the market, proponents claim.

  • UK banks tighten grip on US PP tables

    Barclays and Natwest Markets have come first and second in league tables for cross-border activity in the US private placement market. As US private placements become more popular in the UK, British banks have strengthened their status in the market.

  • Asia IG borrowers prep deals as market drops

    Dollar bonds in Asia followed the US markets’ end to last week by trading lower. Nonetheless, the continent’s investment grade issuers are looking to print with many high yield issuers still emerging from earnings blackouts.

  • Winter is coming to MUFG

    Ex-Barclays honcho John Winter has been appointed CEO of MUFG Securities for the Europe, Middle East and Africa region, and head of the Japanese bank’s global corporate and investment banking business for EMEA.

  • China’s Cifi nabs ultra-tight bond

    Chinese property company Cifi Holdings raised $255m from a tightly priced bond sale, rushing to the market after an upgrade by S&P Global Ratings on Monday.

  • Chengdu LGFV, Zhongtai International snap up funds

    Local government financing vehicle (LGFV) Chengdu Economic and Technological Development Zone State-Owned Assets Investment doubled the size of a 2022 bond on Thursday, while another Chinese issuer Zhongtai Financial International walked away with $200m from a sub-one year note.

  • ‘Too good to be true’ corporate market keeps on believing

    Another exceptionally strong week for corporate bond issuance in Europe petered out slightly on Wednesday and Thursday, but the fireworks of the first two days make it clear to all that investors’ thirst for bonds remains exceptional.

  • Prepare for the worst: No Deal is most likely outcome

    Capital market specialists are good at living with radical uncertainty. Just as banks and investors carried on calmly trading US Treasuries through successive debt ceiling crises, they are now displaying similar sangfroid about Brexit.

  • Vodafone mando surprise: issuer happy with S&P treatment

    Standard & Poor’s will not give explicit equity credit to the £3.4bn of mandatorily convertible bonds issued by Vodafone a fortnight ago. But S&P will give some rating benefit, and the UK telecoms company is cheerful about the result. Some bankers believe other issuers will follow suit, writes Jon Hay.

  • People moves in brief

    Nomura strengthens special situations team — JP Morgan’s Orssten retires — Gamekeeper goes back to being poacher at Rand

  • High yield buyers squeezed as stalwarts switch to investment grade

    High yield bond investors in Europe are getting squeezed from both sides, as formerly regular visitors to the market hit investment grade status, and new acquisition financings hit the loan market rather than bonds. Schaeffler’s blow-out debut in the investment grade bond market on Tuesday took out €1.5bn equivalent of former HY product.

  • Dovish Fed prompts spread dread

    Bankers expressed concerns about widening high-grade spreads after the Federal Reserve this week completed its u-turn on monetary policy by signalling it will refrain from raising interest rates for the rest of the year.

  • Corporate bond issuers hold off despite boost from Fed

    The US Federal Open Market Committee meeting on Wednesday gave renewed confidence to the investment thesis that is underlying the present superlative demand for corporate bonds in Europe: that interest rates are staying low for a good while.

  • SSP returns to US PP mart with scant Brexit premium

    SSP, the UK food and drinks retail operator, has sold US private placements (US PP) via Barclays and Bank of America. Pricing was similar to its PP debut last year, market participants said, which is a sign that, for the right UK credit, the market remains stable amid the Brexit storm.

  • KWG dollar bond triggers market standards debate

    Chinese property company KWG Group Holdings closed a $350m bond tap this week, coming to the market just a week before it was due to report earnings. That led to a sharp disagreement between bankers over the practice of launching deals during a blackout period. Morgan Davis reports.