Corporate Bonds - Article Archive

  • IAG's €1bn three times covered, VW gets €500m via Goldman

    Two companies took advantage of a quiet market on Friday to issue euro bonds. International Airlines Group, owner of British Airways, Iberia, Aer Lingus and Vueling, issued €1bn of bonds that were more than three times covered pre-reconciliation, while Volkswagen Bank printed €500m solely led by Goldman Sachs.

  • GlobalCapital opens 2019 poll for SRI Awards

    GlobalCapital has launched its poll to determine the 2019 winners of its Sustainable and Responsible Capital Markets Awards. Market participants are invited to participate.

  • ESR turns to debt after pulled IPO

    ESR Cayman has turned to the debt market for a $175m bond tap, just two weeks after delaying its initial public offering in Hong Kong.

  • Swiss mart clocks up bumper H1 despite drop in yields

    Well over Sfr1bn ($1bn) of Pfandbriefe and covered bonds was printed within three days this week, rounding off what bankers say turned out to be a surprisingly good first half of the year for the Swissie market.

  • Dollar bond market needs shot in the arm from AbbVie

    The prospect of a blockbuster bond deal from US pharmaceutical group AbbVie was welcomed by dollar bond investors this week, after corporate issuance tumbled to its lowest monthly tally this year.

  • AbbVie's $63bn acquisition to fuel M&A bonfire

    AbbVie’s $63bn cash-and-shares bid for Allergan, a rival drug company, will add fuel to the pharmaceutical sector's M&A bonfire, with more jumbo deals expected before the year ends. A trip to the bond market for funds, including a large euro issue, is also likely, write Mike Turner and Alex Radford.

  • SSD issuers cut floater spreads to compensate for floors

    Schuldschein borrowers, with the help of arranging banks, are for the first time offering different pricing ranges on issues of fixed and floating rates, as the market tries to find ways of dealing with the prolonged period of negative interest rates.

  • City of London launches US private placements

    The City of London Corporation, via its endowment fund The City’s Cash, has launched first US private placements (PP), roadshowing the prospective notes this week and next. The funds will be partly used to finance the consolidation of the Billingsgate, Smithfield and Spitalfields wholesale food markets at a new site in Dagenham, Essex.

  • Rallye CDS holders get 87.5% after bonds slide into auction

    The auction to determine the credit default swap payouts over the safeguard proceedings of Rallye was held on Thursday, and gave protection buyers an 87.5% payout. The supermarket holding company’s bonds had slid roughly five points in the week before, to trade at around 15 ahead of the auction, but settlement interest was all on one side, pushing the final price to 12.5.

  • Gatwick and Engie print as corps pace eases after deal glut

    Gatwick, London's second airport, offered a £300m no-grow 30 year bond into a quieter corporate bond market on Thursday, while Engie, the French power and gas group, issued a €500m non-call 5.75 year hybrid. This slowing of issuance from the frenetic pace earlier in the week was welcomed by bankers concerned investors might have been overtaxed.

  • Gansu LGFV ends busy week with popular bond

    Gansu Provincial Highway Aviation Tourism Investment Group Co priced a $300m bond that was over eight times covered at its peak, in yet another busy week for issuance from Chinese local government financing vehicles (LGFVs).

  • China’s LGFV problem is far from solved

    China’s tighter grip on offshore bonds from local government financing vehicles (LGFVs) has given a short-term boost to issuance volume in the past few weeks. But although the deal flow from the sector is set to slow down, concerns over LGFV risks are far from over.

  • Buzzi Unicem returns to Schuldschein with tighter margins

    Buzzi Unicem has returned to the Schuldschein market, looking for at least €100m of debt in four maturities. The pricing levels are tighter than on the Italian cement and concrete group’s debut Schuldschein in 2017. Bankers thought this was thanks to investors' growing familiarity with the borrower, as well as a rating upgrade from Standard & Poor's.

  • Motability, OMV and CNH pack busy market

    Motability Operations Group, the UK company that operates the UK government's scheme to provide cars for the disabled, printed a £1.438bn-equivalent euro and sterling three tranche bond on Wednesday, in a busy day that also brought a €1bn two part issue from OMV, the Austrian oil and gas company.

  • Medtronic shows euro love again with €5bn including rare 30 year

    Medtronic, the Irish-registered US medical devices maker, returned to the euro bond market on Tuesday for a jumbo issue of €5bn, only three months after issuing a €7bn deal - a move that highlights the attractiveness of the euro market. Once again, Medtronic is using the money to buy back dollar bonds.

  • Investors gobble up SMC's opportunistic return

    SMC Global Power Holdings Corp (SMCGP) has added an opportunistic $300m to its coffers from a reopening of its popular 6.5% perpetual bond, spying a good window to return to the market.

  • Bonds news in brief: CMB Leasing, LGFVs, developers price

    CMB Financial Leasing raised $1bn from two dollar bonds on a day that a number of Chinese local government financing vehicles (LGFVs) and property developers also cashed in on the conducive market backdrop for new issuance.

  • Fibra Uno beats broad volatility on bond return

    Broader volatility could not interrupt Latin America’s rediscovered bond market momentum, as Mexican real estate investment trust (REIT) Fibra Uno tapped international investors for the first time in three years on Tuesday.

  • Travelodge picks Brexit gap to refinance HY in sterling

    Travelodge is planning to dip into the sterling market to refinance all its bonds, issuing up to £440m in senior secured floating rate notes. It would take advantage of a window for UK issuance before the likely resumption of political worries in the autumn as the Brexit deadline approaches.

  • Vasakronan first to issue fully digital paper

    Swedish real estate company Vasakronan last week became the first issuer to print a fully digitally issued bond. The 15 year Australian dollar note was also the first paper to be wholly processed on the Origin fintech platform.

  • Regulators put manufactured CDS events in crosshairs

    The US Commodity Futures Trading Commission and the UK’s Financial Conduct Authority have added regulatory pressure to the credit default swap market, pledging to clamp down on manufactured credit events.

  • Porsche offers green Schuldschein for EVs

    Porsche AG, maker of Porsche sports cars, has returned to the Schuldschein market, on the hunt for funds for research and development into electric cars, among other green projects.

  • CGNPC reaps rewards of IG status

    China General Nuclear Power Corp (CGNPC) raked in $600m on Monday from its third green bond sale, benefitting from investors’ eagerness for investment grade paper.

  • Zhongyuan Yuzi puts past behind with strong bond comeback

    Local government financing vehicle (LGFV) Zhongyuan Yuzi Investment Holding Group Co priced a $500m deal that was nearly six times covered, a year after cancelling a planned issuance, thanks to a combination of prudent execution strategy as well as improved sentiment on the sector.

  • YPF return impresses but unlikely to trigger Argie flow

    State-owned Argentine oil and gas company YPF became the first borrower from the country to tap international bond markets in 14 months on Monday. Yet despite a healthy reception from investors, bankers do not expect copycat trades from other Argentine issuers.

  • Crédit Agricole CIB joins levfin and HY businesses

    Crédit Agricole CIB has reorganised its leveraged credit business, bringing leveraged loan and high yield bond syndicate and sales together, while also combining LBO, telecoms, and high yield bond origination.

  • Omnicom joins In’Li in corporate bond spate

    Europe's investment grade corporate bond market began the week with a hefty pack of new bond issues, as issuers were spurred on to bring deals by last week's rally and the favourable performance of past prints.

  • IAG roadshows for new €500m bond to fund CB tender

    International Consolidated Airlines Group (IAG) is running a tender offer for its outstanding €500m 0.25% convertible bonds due in November 2020 and is considering replacing the CBs with new euro-denominated senior unsecured bonds.

  • Wagner leaves Barclays

    Rainer Wagner is leaving Barclays, six months after it was announced he would be taking on more responsibilities at the bank.

  • Cielo buy-back gets sky-high response

    Cielo, the largest merchant acquiring and payment processing company in Brazil, on Friday wrapped up a consent solicitation and bond buy-back for its global 2022s that will effectively split the note in two.

  • CRCC sets benchmark for Chinese SOE sub perps

    China Railway Construction Corp has priced an unusual $1bn subordinated perpetual bond, with more issuers expected to adopt a similar structure in the wake of new guidelines on accounting treatment for corporate perps.

  • Berlin rent freeze sends shivers through German housing finance

    A corner of Europe’s capital markets that up to now has offered both stability and growth — German housing companies — has been thrown into turmoil by a five year rent freeze on all housing, proposed by the State of Berlin, write Silas Brown, Aidan Gregory and Jon Hay.

  • Hot demand does not ensure easy bond sales

    The dollar corporate bond market was ripe for new issuance on Thursday after the US Federal Reserve opened the door to a rate cut soon. But investors eager to buy were frustrated by a week of light issuance from infrequent issuers, which in some cases had to pay up for access.

  • Europe preps for negative yield creep after fresh QE hints

    Bond yields were in free-fall this week after the world’s two major central banks suggested they might ease their monetary policies further to prevent an economic downturn. With masses of global debt now yielding below 0%, some corporate and financial borrowers are standing on the brink of having to issue shorter term paper at negative rates.

  • Swedish krona prepares for midsummer break

    Issuance in Swedish kronor picked up this week, with three corporate issuers placing Skr6.28bn ($667.9m) across four private placements, as issuers looked to get in ahead of the midsummer break. In euros, a Dutch and French agency both placed paper, while protests in Hong Kong caused yields to spike in offshore Chinese renminbi and Hong Kong dollars.

  • PGS pulls refi citing ‘weaker investor sentiment’

    Norwegian oilfield services firm Petroleum Geo Services has pulled its planned refinancing, citing "increased volatility in the capital markets" and "weaker investor sentiment towards oil field service".